[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:12.48,0:00:15.02,Default,,0000,0000,0000,,I’ve been asked \Nto say a few words
Dialogue: 0,0:00:15.02,0:00:20.41,Default,,0000,0000,0000,,about the global shift \Nin power in politics.
Dialogue: 0,0:00:20.41,0:00:23.85,Default,,0000,0000,0000,,That's a hotly debated topic these days.
Dialogue: 0,0:00:23.85,0:00:27.86,Default,,0000,0000,0000,,There’s a great deal \Nof speculation about
Dialogue: 0,0:00:27.86,0:00:32.23,Default,,0000,0000,0000,,whether or when China will\Ndisplace the United States
Dialogue: 0,0:00:32.23,0:00:34.48,Default,,0000,0000,0000,,as the dominant global power,
Dialogue: 0,0:00:34.48,0:00:36.63,Default,,0000,0000,0000,,perhaps along with India,
Dialogue: 0,0:00:36.63,0:00:41.34,Default,,0000,0000,0000,,which if true would mean that\Nthe global system would be returning
Dialogue: 0,0:00:41.34,0:00:46.24,Default,,0000,0000,0000,,to something like what it was\Nbefore the European conquests,
Dialogue: 0,0:00:46.24,0:00:48.67,Default,,0000,0000,0000,,primarily from the 17th century.
Dialogue: 0,0:00:48.67,0:00:53.04,Default,,0000,0000,0000,,Just to illustrate\Nthe mood with unscientific
Dialogue: 0,0:00:53.04,0:00:56.18,Default,,0000,0000,0000,,but probably representative sample,
Dialogue: 0,0:00:56.18,0:01:01.05,Default,,0000,0000,0000,,I was talking recently to \Na professor of history
Dialogue: 0,0:01:01.05,0:01:04.29,Default,,0000,0000,0000,,at one of the Massachusetts' \Nstate colleges,
Dialogue: 0,0:01:04.29,0:01:09.10,Default,,0000,0000,0000,,who told me that at the beginning \Nof every semester she asks
Dialogue: 0,0:01:09.10,0:01:13.64,Default,,0000,0000,0000,,her students what they think \Nare the richest countries in the world.
Dialogue: 0,0:01:13.64,0:01:18.74,Default,,0000,0000,0000,,And for the last few years,\Nthey've been regularly saying China and India.
Dialogue: 0,0:01:18.74,0:01:22.90,Default,,0000,0000,0000,,Well, you could believe that\Nif you read the headlines.
Dialogue: 0,0:01:22.90,0:01:26.41,Default,,0000,0000,0000,,A few qualifications may be in order.
Dialogue: 0,0:01:26.41,0:01:30.67,Default,,0000,0000,0000,,First, what about wealth \Nor the health of the society.
Dialogue: 0,0:01:30.67,0:01:33.02,Default,,0000,0000,0000,,There's a standard measure,
Dialogue: 0,0:01:33.02,0:01:37.41,Default,,0000,0000,0000,,it's the Human Development Index\Ncomes out every year.
Dialogue: 0,0:01:37.41,0:01:41.28,Default,,0000,0000,0000,,With the latest release,
Dialogue: 0,0:01:41.28,0:01:45.14,Default,,0000,0000,0000,,India was ranked at 134th,
Dialogue: 0,0:01:45.14,0:01:47.57,Default,,0000,0000,0000,,slightly above Cambodia,
Dialogue: 0,0:01:47.57,0:01:51.11,Default,,0000,0000,0000,,below Laos and Tajikistan.
Dialogue: 0,0:01:51.11,0:01:54.23,Default,,0000,0000,0000,,That's about where it was\Nseveral decades ago.
Dialogue: 0,0:01:54.23,0:01:57.82,Default,,0000,0000,0000,,China was ranked 92nd.
Dialogue: 0,0:01:57.82,0:02:00.31,Default,,0000,0000,0000,,But that's a little uncertain
Dialogue: 0,0:02:00.31,0:02:02.54,Default,,0000,0000,0000,,since the poor areas of China
Dialogue: 0,0:02:02.54,0:02:05.64,Default,,0000,0000,0000,,are not very accessible\Nin this more closed society.
Dialogue: 0,0:02:05.64,0:02:07.71,Default,,0000,0000,0000,,So it could be lower.
Dialogue: 0,0:02:07.71,0:02:10.26,Default,,0000,0000,0000,,Where it's ranked \Nit's tied with Belize
Dialogue: 0,0:02:10.26,0:02:12.48,Default,,0000,0000,0000,,as slightly above Jordan
Dialogue: 0,0:02:12.48,0:02:15.81,Default,,0000,0000,0000,,and below the Dominican Republic\Nand Iran.
Dialogue: 0,0:02:15.81,0:02:17.68,Default,,0000,0000,0000,,By comparison,
Dialogue: 0,0:02:17.68,0:02:20.86,Default,,0000,0000,0000,,Cuba, which has been\Nunder harsh US attack
Dialogue: 0,0:02:20.86,0:02:24.88,Default,,0000,0000,0000,,for 50 years is ranked 52nd.
Dialogue: 0,0:02:24.88,0:02:27.22,Default,,0000,0000,0000,,It's above both of those,
Dialogue: 0,0:02:27.22,0:02:30.46,Default,,0000,0000,0000,,also the highest in the Central America\Nand the Caribbean,
Dialogue: 0,0:02:30.46,0:02:33.54,Default,,0000,0000,0000,,barely below Argentina and Uruguay.
Dialogue: 0,0:02:33.54,0:02:38.37,Default,,0000,0000,0000,,India and China also have \Nextraordinarily high inequalities,
Dialogue: 0,0:02:38.37,0:02:39.97,Default,,0000,0000,0000,,some of the worst in the world.
Dialogue: 0,0:02:39.97,0:02:42.22,Default,,0000,0000,0000,,So that means \Na well over a billion people
Dialogue: 0,0:02:42.22,0:02:45.30,Default,,0000,0000,0000,,are much further down \Nin the scale.
Dialogue: 0,0:02:45.30,0:02:47.62,Default,,0000,0000,0000,,Well, what about debt?
Dialogue: 0,0:02:47.62,0:02:56.25,Default,,0000,0000,0000,,Common discussion ideas, it places\Nthe United States enthralled to China's whims.
Dialogue: 0,0:02:56.25,0:03:00.60,Default,,0000,0000,0000,,Well, apart from a very brief interlude,\Nwhich is now over,
Dialogue: 0,0:03:00.60,0:03:03.21,Default,,0000,0000,0000,,Japan has been the biggest holder
Dialogue: 0,0:03:03.21,0:03:06.43,Default,,0000,0000,0000,,\Nof the US government debt.
Dialogue: 0,0:03:06.43,0:03:09.59,Default,,0000,0000,0000,,At best, it’s not much of a weapon
Dialogue: 0,0:03:09.59,0:03:13.97,Default,,0000,0000,0000,,for many reasons\Nthat are well understood.
Dialogue: 0,0:03:13.97,0:03:15.88,Default,,0000,0000,0000,,What about prospects?
Dialogue: 0,0:03:15.88,0:03:18.65,Default,,0000,0000,0000,,The United States has\Nenormous advantages
Dialogue: 0,0:03:18.65,0:03:21.05,Default,,0000,0000,0000,,over both Europe and Asia.
Dialogue: 0,0:03:21.05,0:03:22.89,Default,,0000,0000,0000,,For one thing, it's unified,
Dialogue: 0,0:03:22.89,0:03:27.18,Default,,0000,0000,0000,,has a relatively homogeneous population,\None language,
Dialogue: 0,0:03:27.18,0:03:30.43,Default,,0000,0000,0000,,a huge internal market \Nand rich resources,
Dialogue: 0,0:03:30.43,0:03:33.91,Default,,0000,0000,0000,,a favorable climate \Nand much more.
Dialogue: 0,0:03:33.91,0:03:36.55,Default,,0000,0000,0000,,What about military power?
Dialogue: 0,0:03:36.55,0:03:39.22,Default,,0000,0000,0000,,Well, here there's just \Nno discussion.
Dialogue: 0,0:03:39.22,0:03:43.50,Default,,0000,0000,0000,,The US is about the same\Nas the rest of the world combined
Dialogue: 0,0:03:43.50,0:03:47.13,Default,,0000,0000,0000,,in military expenditures, much more\Nif we can add intelligence.
Dialogue: 0,0:03:47.13,0:03:49.74,Default,,0000,0000,0000,,Technologically far more advanced.
Dialogue: 0,0:03:49.74,0:03:54.17,Default,,0000,0000,0000,,It's the only country with \Nhundreds of military bases,
Dialogue: 0,0:03:54.17,0:03:56.71,Default,,0000,0000,0000,,maybe 800 military bases abroad,
Dialogue: 0,0:03:56.71,0:04:01.40,Default,,0000,0000,0000,,which in fact are regularly used\Nfor the exercise of violence.
Dialogue: 0,0:04:01.40,0:04:03.96,Default,,0000,0000,0000,,So here, there's no comparison.
Dialogue: 0,0:04:03.96,0:04:07.88,Default,,0000,0000,0000,,Actually there’s more\Nfundamental observation.
Dialogue: 0,0:04:07.88,0:04:11.64,Default,,0000,0000,0000,,The entire framework of discussion,\Nthough conventional,
Dialogue: 0,0:04:11.64,0:04:13.98,Default,,0000,0000,0000,,is pretty misleading.
Dialogue: 0,0:04:13.98,0:04:18.03,Default,,0000,0000,0000,,The global system is not\Njust an interaction among states,
Dialogue: 0,0:04:18.03,0:04:22.18,Default,,0000,0000,0000,,which pursue some\Nso-called national interest,
Dialogue: 0,0:04:22.18,0:04:27.32,Default,,0000,0000,0000,,which is abstracted from the distribution\Nof domestic power within the society.
Dialogue: 0,0:04:27.32,0:04:31.72,Default,,0000,0000,0000,,That’s the way the matter\Nis usually viewed in commentary
Dialogue: 0,0:04:31.72,0:04:37.73,Default,,0000,0000,0000,,and also in the profession and\Nprofessional international relations theory.
Dialogue: 0,0:04:37.73,0:04:40.28,Default,,0000,0000,0000,,Largely dominant views\Ncalled realism --
Dialogue: 0,0:04:40.28,0:04:44.57,Default,,0000,0000,0000,,views the international system\Nroughly in this fashion.
Dialogue: 0,0:04:44.57,0:04:47.79,Default,,0000,0000,0000,,Now, there have always been\Ncritics of this view.
Dialogue: 0,0:04:47.79,0:04:51.05,Default,,0000,0000,0000,,To take one, Adam Smith.
Dialogue: 0,0:04:51.05,0:04:54.68,Default,,0000,0000,0000,,Adam Smith was concerned\Nprimarily with England.
Dialogue: 0,0:04:54.68,0:04:56.28,Default,,0000,0000,0000,,And he described --
Dialogue: 0,0:04:56.28,0:04:57.77,Default,,0000,0000,0000,,He said that in England,
Dialogue: 0,0:04:57.77,0:05:02.07,Default,,0000,0000,0000,,the principal architects \Nof government policy
Dialogue: 0,0:05:02.07,0:05:04.77,Default,,0000,0000,0000,,are merchants and manufacturers
Dialogue: 0,0:05:04.77,0:05:07.39,Default,,0000,0000,0000,,and they make sure\Nthat their own interests
Dialogue: 0,0:05:07.39,0:05:10.22,Default,,0000,0000,0000,,are most peculiarly attended to,
Dialogue: 0,0:05:10.22,0:05:13.53,Default,,0000,0000,0000,,however, grievous the impact\Non others,
Dialogue: 0,0:05:13.53,0:05:15.20,Default,,0000,0000,0000,,including the people of the England,
Dialogue: 0,0:05:15.20,0:05:19.18,Default,,0000,0000,0000,,but of course far worse \Nof those who are subject to
Dialogue: 0,0:05:19.18,0:05:22.18,Default,,0000,0000,0000,,what he called the savage injustice\Nof the Europeans.
Dialogue: 0,0:05:22.18,0:05:26.21,Default,,0000,0000,0000,,He was referring particularly\Nto England and India.
Dialogue: 0,0:05:26.21,0:05:30.43,Default,,0000,0000,0000,,Well, today, pretty much\Nthe same maxim holds.
Dialogue: 0,0:05:30.43,0:05:32.90,Default,,0000,0000,0000,,It's not merchants and manufacturers
Dialogue: 0,0:05:32.90,0:05:34.98,Default,,0000,0000,0000,,in the United States and Europe.
Dialogue: 0,0:05:34.98,0:05:40.30,Default,,0000,0000,0000,,It's primarily multinational corporations\Nand financial institutions.
Dialogue: 0,0:05:40.30,0:05:44.23,Default,,0000,0000,0000,,The financialization of the economy \Nhas been in a dramatic change
Dialogue: 0,0:05:44.23,0:05:47.22,Default,,0000,0000,0000,,in the last roughly 30 years.
Dialogue: 0,0:05:47.22,0:05:50.58,Default,,0000,0000,0000,,If you go back to about 1970 in the United States,
Dialogue: 0,0:05:50.58,0:05:55.25,Default,,0000,0000,0000,,financial institutions amounted to\Nmaybe 3 percent of gross domestic product.
Dialogue: 0,0:05:55.25,0:05:57.53,Default,,0000,0000,0000,,And now it's approaching a third.
Dialogue: 0,0:05:57.53,0:06:01.90,Default,,0000,0000,0000,,Corresponding fact is\Nthe hollowing out of productive industry
Dialogue: 0,0:06:01.90,0:06:04.67,Default,,0000,0000,0000,,and that has huge effects \Non the society,
Dialogue: 0,0:06:04.67,0:06:07.31,Default,,0000,0000,0000,,on political decisions \Nand on the political system
Dialogue: 0,0:06:07.31,0:06:10.39,Default,,0000,0000,0000,,generally keeping to \NAdam Smith's maxim.
Dialogue: 0,0:06:10.39,0:06:13.98,Default,,0000,0000,0000,,In fact we've just seen\Na very dramatic illustration of that.
Dialogue: 0,0:06:13.98,0:06:18.60,Default,,0000,0000,0000,,President Obama,\Nwho has gained office,
Dialogue: 0,0:06:18.60,0:06:22.69,Default,,0000,0000,0000,,in large measure through the support\Nof the financial industry,
Dialogue: 0,0:06:22.69,0:06:24.83,Default,,0000,0000,0000,,huge component of the economy.
Dialogue: 0,0:06:24.83,0:06:29.88,Default,,0000,0000,0000,,And they preferred him to McCain\Nand that was the core of his funding.
Dialogue: 0,0:06:29.88,0:06:32.33,Default,,0000,0000,0000,,And there was a payoff.
Dialogue: 0,0:06:32.33,0:06:35.60,Default,,0000,0000,0000,,Huge bailouts \Nto the financial institutions
Dialogue: 0,0:06:35.60,0:06:38.24,Default,,0000,0000,0000,,when the system collapsed.
Dialogue: 0,0:06:38.24,0:06:40.36,Default,,0000,0000,0000,,And they were actually\Nmuch more important gifts
Dialogue: 0,0:06:40.36,0:06:42.91,Default,,0000,0000,0000,,that are not so much discussed.
Dialogue: 0,0:06:42.91,0:06:44.70,Default,,0000,0000,0000,,So takes a Goldman Sachs,
Dialogue: 0,0:06:44.70,0:06:47.02,Default,,0000,0000,0000,,which is considered the top dog
Dialogue: 0,0:06:47.02,0:06:50.06,Default,,0000,0000,0000,,in the economy and\Nthe political system.
Dialogue: 0,0:06:50.06,0:06:54.29,Default,,0000,0000,0000,,It made a mint by selling \Nmortgage-based securities
Dialogue: 0,0:06:54.29,0:06:57.35,Default,,0000,0000,0000,,and more complex\Nfinancial instruments
Dialogue: 0,0:06:57.35,0:06:59.29,Default,,0000,0000,0000,,to unwitting buyers.
Dialogue: 0,0:06:59.29,0:07:01.94,Default,,0000,0000,0000,,But Goldman Sachs itself knew\Nwhat it was doing.
Dialogue: 0,0:07:01.94,0:07:05.17,Default,,0000,0000,0000,,They knew that they were\Nlikely to go bust.
Dialogue: 0,0:07:05.17,0:07:09.74,Default,,0000,0000,0000,,So the company insured itself\Nagainst loss
Dialogue: 0,0:07:09.74,0:07:13.63,Default,,0000,0000,0000,,by betting that\Nwhat they're selling would fail
Dialogue: 0,0:07:13.63,0:07:16.45,Default,,0000,0000,0000,,using, what's called, \Ncredit default swaps
Dialogue: 0,0:07:16.45,0:07:20.34,Default,,0000,0000,0000,,through giant insurance agency AIG,
Dialogue: 0,0:07:20.34,0:07:22.75,Default,,0000,0000,0000,,the world's biggest insurance agency.
Dialogue: 0,0:07:22.75,0:07:24.99,Default,,0000,0000,0000,,Well, when the financial system collapsed,
Dialogue: 0,0:07:24.99,0:07:27.57,Default,,0000,0000,0000,,it took AIG down with it.
Dialogue: 0,0:07:27.57,0:07:32.38,Default,,0000,0000,0000,,But Goldman's boys are well-placed\Namong the architects of power
Dialogue: 0,0:07:32.38,0:07:35.52,Default,,0000,0000,0000,,and they not only arranged\Nfor a huge bailout.
Dialogue: 0,0:07:35.52,0:07:38.05,Default,,0000,0000,0000,,but more importantly, \Nthey got the taxpayer\N
Dialogue: 0,0:07:38.05,0:07:45.34,Default,,0000,0000,0000,,to pay to save AIG from bankruptcy\Nby up their collapsed loans
Dialogue: 0,0:07:47.19,0:07:51.36,Default,,0000,0000,0000,,and that incidentally saved Goldman Sachs\Nfrom the same fate.
Dialogue: 0,0:07:51.36,0:07:55.89,Default,,0000,0000,0000,,Now, the CEO of Goldman Sachs\NLloyd Blankfein
Dialogue: 0,0:07:55.89,0:07:59.96,Default,,0000,0000,0000,,is hailed as maybe\Nthe greatest genius since Einstein.
Dialogue: 0,0:07:59.96,0:08:02.72,Default,,0000,0000,0000,,Goldman's making record profits,
Dialogue: 0,0:08:02.72,0:08:05.02,Default,,0000,0000,0000,,paying out huge bonuses.
Dialogue: 0,0:08:05.02,0:08:08.62,Default,,0000,0000,0000,,And the other agents\Nof the financial crisis
Dialogue: 0,0:08:08.62,0:08:11.37,Default,,0000,0000,0000,,are bigger and more powerful\Nthan ever.
Dialogue: 0,0:08:11.37,0:08:16.25,Default,,0000,0000,0000,,Well, the public may not understand \Nthe details, but they are furious.
Dialogue: 0,0:08:16.25,0:08:19.99,Default,,0000,0000,0000,,The banks that created the crisis \Nare visibly booming,
Dialogue: 0,0:08:19.99,0:08:22.40,Default,,0000,0000,0000,,the population is suffering,
Dialogue: 0,0:08:22.40,0:08:26.69,Default,,0000,0000,0000,,the unemployment is officially \Nat about 10 percent, actually much higher.
Dialogue: 0,0:08:26.69,0:08:31.16,Default,,0000,0000,0000,,In manufacturing industry,\Nit's about the level of the Great Depression.
Dialogue: 0,0:08:31.16,0:08:33.16,Default,,0000,0000,0000,,And those jobs \Nare not coming back
Dialogue: 0,0:08:33.16,0:08:37.33,Default,,0000,0000,0000,,because of the shipping\Nof productive capacity abroad.
Dialogue: 0,0:08:37.33,0:08:39.56,Default,,0000,0000,0000,,In fact, for the last 30 years,
Dialogue: 0,0:08:39.56,0:08:42.13,Default,,0000,0000,0000,,for the majority of the population,
Dialogue: 0,0:08:42.15,0:08:46.22,Default,,0000,0000,0000,,there has been roughly stagnation,\Nsometimes decline,
Dialogue: 0,0:08:46.22,0:08:51.77,Default,,0000,0000,0000,,in the real wages as wealth\Npoured into very few pockets
Dialogue: 0,0:08:51.77,0:08:55.18,Default,,0000,0000,0000,,at highest inequality in US history.
Dialogue: 0,0:08:55.20,0:08:56.75,Default,,0000,0000,0000,,So there's plenty of anger.
Dialogue: 0,0:08:56.75,0:09:00.11,Default,,0000,0000,0000,,And finally President Obama\Nhad to react to it.
Dialogue: 0,0:09:00.11,0:09:01.69,Default,,0000,0000,0000,,And he did a couple months ago.
Dialogue: 0,0:09:01.69,0:09:04.18,Default,,0000,0000,0000,,He reacted first with \Nthe rhetorical shift,
Dialogue: 0,0:09:04.18,0:09:06.66,Default,,0000,0000,0000,,started talking about \Nbad bankers and so on.
Dialogue: 0,0:09:06.66,0:09:11.56,Default,,0000,0000,0000,,And also a few policy suggestions \Nthat the financial industry didn't like.
Dialogue: 0,0:09:11.56,0:09:14.02,Default,,0000,0000,0000,,But he was supposed to be\Ntheir man in Washington.
Dialogue: 0,0:09:14.02,0:09:15.92,Default,,0000,0000,0000,,They'd bought him \Nand put him in.
Dialogue: 0,0:09:15.92,0:09:19.90,Default,,0000,0000,0000,,And the principal architects\Nvery quickly sent their instructions.
Dialogue: 0,0:09:19.90,0:09:25.14,Default,,0000,0000,0000,,They announced very publicly that\Nthey're shifting funds to the political opposition.
Dialogue: 0,0:09:25.14,0:09:29.61,Default,,0000,0000,0000,,And they poured money\Ninto crucial election in Massachusetts,
Dialogue: 0,0:09:29.61,0:09:34.54,Default,,0000,0000,0000,,which gave the Republicans the power\Nto block any congressional legislations.
Dialogue: 0,0:09:34.54,0:09:36.59,Default,,0000,0000,0000,,An Interesting story in itself.
Dialogue: 0,0:09:36.59,0:09:39.42,Default,,0000,0000,0000,,And Obama got the message\Nwithin days.
Dialogue: 0,0:09:39.42,0:09:42.00,Default,,0000,0000,0000,,Within days, he informed\Nthe business press
Dialogue: 0,0:09:42.00,0:09:45.55,Default,,0000,0000,0000,,that bankers are, I'm quoting now, \N"are fine guys."
Dialogue: 0,0:09:45.55,0:09:48.44,Default,,0000,0000,0000,,He singled out for praise \Nthe chairmen of chairs\N
Dialogue: 0,0:09:48.44,0:09:53.67,Default,,0000,0000,0000,,of the JP Morgan Chase and Goldman Sachs,\Nthe two biggest players.
Dialogue: 0,0:09:53.67,0:09:56.52,Default,,0000,0000,0000,,And he assured the business world\Nas he put it that,
Dialogue: 0,0:09:56.52,0:10:02.06,Default,,0000,0000,0000,,"I, like most of the American people,\Ndon't begrudge people's success or wealth."
Dialogue: 0,0:10:02.06,0:10:07.07,Default,,0000,0000,0000,,He's referring to the huge bonuses and profits\Nthat are infuriating the public.
Dialogue: 0,0:10:07.07,0:10:11.45,Default,,0000,0000,0000,,"That's part of the free market system,"\NObama continued.
Dialogue: 0,0:10:11.45,0:10:14.76,Default,,0000,0000,0000,,Not inaccurately\Nas free markets are interpreted
Dialogue: 0,0:10:14.76,0:10:17.41,Default,,0000,0000,0000,,in state capitalist doctrine.
Dialogue: 0,0:10:17.41,0:10:23.26,Default,,0000,0000,0000,,It's a very revealing snapshot\Nof the Smith's maxim in action.
Dialogue: 0,0:10:24.53,0:10:28.00,Default,,0000,0000,0000,,Well, with Adam Smith's\Ncrucial corrective in mind,
Dialogue: 0,0:10:28.00,0:10:30.00,Default,,0000,0000,0000,,let's take another look\Nat the global system.
Dialogue: 0,0:10:30.00,0:10:31.84,Default,,0000,0000,0000,,See what's happening to it.
Dialogue: 0,0:10:31.84,0:10:34.63,Default,,0000,0000,0000,,There is a real shift of power\Nacross the world,
Dialogue: 0,0:10:34.63,0:10:38.65,Default,,0000,0000,0000,,namely, from the workforce\Nto transnational capital.
Dialogue: 0,0:10:38.65,0:10:41.51,Default,,0000,0000,0000,,And China does play a big role in it.
Dialogue: 0,0:10:41.51,0:10:46.96,Default,,0000,0000,0000,,It's basically the assembly plant\Nfor a regional production system.
Dialogue: 0,0:10:46.96,0:10:51.00,Default,,0000,0000,0000,,Japan, Taiwan, \Nother Asian economies
Dialogue: 0,0:10:51.00,0:10:55.31,Default,,0000,0000,0000,,export high-tech parts\Nand components to China,
Dialogue: 0,0:10:55.31,0:10:58.74,Default,,0000,0000,0000,,and China assembles \Nand exports them
Dialogue: 0,0:10:58.74,0:11:03.26,Default,,0000,0000,0000,,using its advantages of extremely cheap\Nand highly repressed labor and land.
Dialogue: 0,0:11:04.97,0:11:08.97,Default,,0000,0000,0000,,There's much concern\Nabout the trade deficit with China,
Dialogue: 0,0:11:08.97,0:11:10.75,Default,,0000,0000,0000,,-- US trade deficit.
Dialogue: 0,0:11:10.75,0:11:12.82,Default,,0000,0000,0000,,Which is in fact huge and growing.
Dialogue: 0,0:11:12.82,0:11:17.77,Default,,0000,0000,0000,,But there’s less attention to the fact\Nthat there's a compensating factor
Dialogue: 0,0:11:17.77,0:11:22.72,Default,,0000,0000,0000,,that trade deficit with Japan\Nand the rest of Asia have sharply declined,
Dialogue: 0,0:11:22.72,0:11:26.69,Default,,0000,0000,0000,,as the new regional production system\Ntakes place.
Dialogue: 0,0:11:26.69,0:11:29.97,Default,,0000,0000,0000,,And US manufacturers are\Nfollowing the same course.
Dialogue: 0,0:11:29.97,0:11:32.90,Default,,0000,0000,0000,,They're providing parts\Nand components for China
Dialogue: 0,0:11:32.90,0:11:36.90,Default,,0000,0000,0000,,to assemble and export\Nback to the United States often
Dialogue: 0,0:11:36.91,0:11:40.48,Default,,0000,0000,0000,,for the financial institutions\Nand the retail giants
Dialogue: 0,0:11:40.48,0:11:46.45,Default,,0000,0000,0000,,and the ownership and management\Nof manufacturing industry.
Dialogue: 0,0:11:46.45,0:11:49.76,Default,,0000,0000,0000,,And the sectors closely related\Nto this nexus of power.
Dialogue: 0,0:11:49.76,0:11:52.94,Default,,0000,0000,0000,,It's heavenly.\NThat's also well understood.
Dialogue: 0,0:11:52.94,0:11:57.56,Default,,0000,0000,0000,,So the head of the very influential\NSloan Foundation,
Dialogue: 0,0:11:57.56,0:12:03.05,Default,,0000,0000,0000,,Ralph Gomory, testified before Congress\Na couple years ago
Dialogue: 0,0:12:03.05,0:12:05.05,Default,,0000,0000,0000,,and he explained that, as he put it,
Dialogue: 0,0:12:05.05,0:12:11.14,Default,,0000,0000,0000,,"In this new era of globalization, the interests\Nof companies and countries have diverged
Dialogue: 0,0:12:11.14,0:12:13.48,Default,,0000,0000,0000,,in contrast to the past.
Dialogue: 0,0:12:13.48,0:12:17.13,Default,,0000,0000,0000,,What is good for America's\Nglobal corporations
Dialogue: 0,0:12:17.13,0:12:21.61,Default,,0000,0000,0000,,is no longer necessarily good\Nfor the American people."
Dialogue: 0,0:12:21.62,0:12:24.25,Default,,0000,0000,0000,,Take one striking illustration.
Dialogue: 0,0:12:24.25,0:12:27.44,Default,,0000,0000,0000,,Take IBM, \Npeak of the computer industry.
Dialogue: 0,0:12:27.44,0:12:31.100,Default,,0000,0000,0000,,Today it employs\Nabout 400,000 people
Dialogue: 0,0:12:31.100,0:12:37.58,Default,,0000,0000,0000,,in its facilities in the United States\Nand its subsidiaries abroad.
Dialogue: 0,0:12:37.58,0:12:41.11,Default,,0000,0000,0000,,By now, employees \Nwithin the United States
Dialogue: 0,0:12:41.11,0:12:44.65,Default,,0000,0000,0000,,have declined to about 30 percent.
Dialogue: 0,0:12:44.65,0:12:48.59,Default,,0000,0000,0000,,Many of the employees here are informed
Dialogue: 0,0:12:48.59,0:12:52.34,Default,,0000,0000,0000,,that they have to go abroad\Nif they want to keep their jobs.
Dialogue: 0,0:12:52.34,0:12:56.37,Default,,0000,0000,0000,,Well, that's fine for IBM owners\Nand directors,
Dialogue: 0,0:12:56.37,0:13:00.01,Default,,0000,0000,0000,,but it's grievous for the country\Nas Adam Smith put it.
Dialogue: 0,0:13:00.01,0:13:05.58,Default,,0000,0000,0000,,And it's worth adding that IBM became\Nthe global giant in computing
Dialogue: 0,0:13:05.58,0:13:10.14,Default,,0000,0000,0000,,in large measure thanks to\Nthe magnificence of the US taxpayer
Dialogue: 0,0:13:10.14,0:13:14.67,Default,,0000,0000,0000,,who substantially funded\Nthe core of the IT revolution
Dialogue: 0,0:13:15.66,0:13:18.33,Default,,0000,0000,0000,,and most of the rest \Nof the high-tech economy.
Dialogue: 0,0:13:18.33,0:13:20.65,Default,,0000,0000,0000,,But business is not philanthropy.
Dialogue: 0,0:13:20.65,0:13:25.25,Default,,0000,0000,0000,,Corporations are dedicated\Nto maximizing profit and market share.
Dialogue: 0,0:13:25.25,0:13:28.12,Default,,0000,0000,0000,,In fact, that's a legal obligation\Nfor management.
Dialogue: 0,0:13:28.12,0:13:32.20,Default,,0000,0000,0000,,So it's not good for the country.\NIt’s too bad.
Dialogue: 0,0:13:32.20,0:13:36.70,Default,,0000,0000,0000,,Well, China became \Nthe world's assembly plant.
Dialogue: 0,0:13:36.70,0:13:41.52,Default,,0000,0000,0000,,The Chinese workers are suffering\Nalong with the rest of the global workforce.
Dialogue: 0,0:13:41.52,0:13:44.15,Default,,0000,0000,0000,,And it's just as we would anticipate in a system\N
Dialogue: 0,0:13:44.15,0:13:47.84,Default,,0000,0000,0000,,that's designed to concentrate\Nwealth and power,
Dialogue: 0,0:13:47.84,0:13:52.55,Default,,0000,0000,0000,,and to set working people in competition\Nwith one another worldwide.
Dialogue: 0,0:13:52.55,0:13:57.51,Default,,0000,0000,0000,,Worldwide the share of workers\Nand national income has been declining
Dialogue: 0,0:13:57.51,0:13:59.77,Default,,0000,0000,0000,,but dramatically so in China,
Dialogue: 0,0:13:59.77,0:14:02.93,Default,,0000,0000,0000,,maybe more than anywhere \Nelse close to it,
Dialogue: 0,0:14:02.93,0:14:09.64,Default,,0000,0000,0000,,which is also leading to growing unrest\Nin this highly inegalitarian society
Dialogue: 0,0:14:09.64,0:14:12.22,Default,,0000,0000,0000,,one of the most inegalitarian\Nin the world,
Dialogue: 0,0:14:12.22,0:14:17.30,Default,,0000,0000,0000,,and capable of considerable violence\Nto suppress dissent.
Dialogue: 0,0:14:17.30,0:14:20.89,Default,,0000,0000,0000,,Well, there's a good deal more\Nto say about all of this
Dialogue: 0,0:14:20.89,0:14:29.11,Default,,0000,0000,0000,,but just to summarize with few salient points\Nfrom a much more complex reality.
Dialogue: 0,0:14:29.11,0:14:33.65,Default,,0000,0000,0000,,There are indeed very important shifts\Nin global power.
Dialogue: 0,0:14:33.65,0:14:37.50,Default,,0000,0000,0000,,And if we escape from \Nthe doctrinal framework,
Dialogue: 0,0:14:37.50,0:14:39.65,Default,,0000,0000,0000,,we can see what they are.
Dialogue: 0,0:14:39.65,0:14:44.51,Default,,0000,0000,0000,,There's a shift from the general\Npopulation worldwide
Dialogue: 0,0:14:44.51,0:14:48.23,Default,,0000,0000,0000,,to the principal architects\Nof the global power system
Dialogue: 0,0:14:48.23,0:14:53.43,Default,,0000,0000,0000,,that's pretty much as\Nwhat any rational person would expect,
Dialogue: 0,0:14:53.43,0:14:58.42,Default,,0000,0000,0000,,particularly when in an era\N-- reffering now to the West
Dialogue: 0,0:14:58.42,0:15:01.21,Default,,0000,0000,0000,,particularly the United States and Europe --
Dialogue: 0,0:15:01.21,0:15:07.38,Default,,0000,0000,0000,,large-scale depoliticization,\Nundermining of functioning democracy.
Dialogue: 0,0:15:09.08,0:15:11.80,Default,,0000,0000,0000,,Where it goes from here depends on\N
Dialogue: 0,0:15:11.80,0:15:15.06,Default,,0000,0000,0000,,how much the great majority\Nis willing to endure.