[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:01.64,0:00:04.78,Default,,0000,0000,0000,,This is a story about capitalism.
Dialogue: 0,0:00:04.78,0:00:06.57,Default,,0000,0000,0000,,It's a system I love
Dialogue: 0,0:00:06.57,0:00:11.29,Default,,0000,0000,0000,,because of the successes and opportunities\Nit's afforded me and millions of others.
Dialogue: 0,0:00:11.79,0:00:18.06,Default,,0000,0000,0000,,I started in my 20s trading commodities,\Ncotton in particular, in the pits,
Dialogue: 0,0:00:18.06,0:00:21.68,Default,,0000,0000,0000,,and if there was ever a free market\Nfree-for-all, this was it,
Dialogue: 0,0:00:21.68,0:00:25.30,Default,,0000,0000,0000,,where men wearing ties \Nbut acting like gladiators
Dialogue: 0,0:00:25.30,0:00:28.79,Default,,0000,0000,0000,,fought literally \Nand physically for a profit.
Dialogue: 0,0:00:29.44,0:00:32.36,Default,,0000,0000,0000,,Fortunately, I was good enough\Nthat by the time I was 30,
Dialogue: 0,0:00:32.36,0:00:36.02,Default,,0000,0000,0000,,I was able to move into the upstairs \Nworld of money management,
Dialogue: 0,0:00:36.02,0:00:39.57,Default,,0000,0000,0000,,where I spent the next three decades\Nas a global macro trader.
Dialogue: 0,0:00:39.57,0:00:42.85,Default,,0000,0000,0000,,And over that time, I've seen\Na lot of crazy things in the markets,
Dialogue: 0,0:00:42.85,0:00:47.53,Default,,0000,0000,0000,,and I've traded a lot of crazy manias.
Dialogue: 0,0:00:47.53,0:00:49.64,Default,,0000,0000,0000,,And unfortunately,
Dialogue: 0,0:00:49.64,0:00:52.94,Default,,0000,0000,0000,,I'm sad to report that right now \Nwe might be in the grips
Dialogue: 0,0:00:52.94,0:00:56.89,Default,,0000,0000,0000,,of one of the most disastrous,\Ncertainly of my career,
Dialogue: 0,0:00:56.89,0:01:00.12,Default,,0000,0000,0000,,and one consistent takeaway is\Nmanias never end well.
Dialogue: 0,0:01:00.78,0:01:03.58,Default,,0000,0000,0000,,Now, over the past 50 years,
Dialogue: 0,0:01:03.58,0:01:09.43,Default,,0000,0000,0000,,we as a society have come to view\Nour companies and corporations
Dialogue: 0,0:01:09.43,0:01:14.24,Default,,0000,0000,0000,,in a very narrow, almost\Nmonomaniacal fashion
Dialogue: 0,0:01:14.99,0:01:18.26,Default,,0000,0000,0000,,with regard to how we value them,
Dialogue: 0,0:01:18.26,0:01:21.92,Default,,0000,0000,0000,,and we have put\Nso much emphasis on profits,
Dialogue: 0,0:01:21.92,0:01:24.71,Default,,0000,0000,0000,,on short-term quarterly\Nearnings and share prices,
Dialogue: 0,0:01:24.71,0:01:27.55,Default,,0000,0000,0000,,at the exclusion of all else.
Dialogue: 0,0:01:27.55,0:01:32.32,Default,,0000,0000,0000,,It's like we've ripped the humanity\Nout of our companies.
Dialogue: 0,0:01:32.32,0:01:36.31,Default,,0000,0000,0000,,Now, we don't do that --\Nconveniently reduce something
Dialogue: 0,0:01:36.31,0:01:39.52,Default,,0000,0000,0000,,to a set of numbers that you\Ncan play with like Lego toys --
Dialogue: 0,0:01:39.52,0:01:41.87,Default,,0000,0000,0000,,we don't do that in our individual life.
Dialogue: 0,0:01:41.87,0:01:45.07,Default,,0000,0000,0000,,We don't treat somebody or value them
Dialogue: 0,0:01:45.07,0:01:49.21,Default,,0000,0000,0000,,based on their monthly income \Nor their credit score,
Dialogue: 0,0:01:49.21,0:01:51.02,Default,,0000,0000,0000,,but we have this double standard
Dialogue: 0,0:01:51.02,0:01:53.56,Default,,0000,0000,0000,,when it comes to the way\Nthat we value our businesses,
Dialogue: 0,0:01:53.56,0:01:55.05,Default,,0000,0000,0000,,and you know what?
Dialogue: 0,0:01:55.05,0:01:58.22,Default,,0000,0000,0000,,It's threatening the very\Nunderpinnings of our society.
Dialogue: 0,0:01:58.22,0:01:59.82,Default,,0000,0000,0000,,And here's how you'll see.
Dialogue: 0,0:01:59.82,0:02:04.32,Default,,0000,0000,0000,,This chart is corporate profit margins\Ngoing back 40 years
Dialogue: 0,0:02:04.32,0:02:06.40,Default,,0000,0000,0000,,as a percentage of revenues,
Dialogue: 0,0:02:06.40,0:02:10.71,Default,,0000,0000,0000,,and you can see that we're\Nat a 40-year high of 12.5 percent.
Dialogue: 0,0:02:10.71,0:02:14.26,Default,,0000,0000,0000,,Now, hooray if you're a shareholder,\N
Dialogue: 0,0:02:14.26,0:02:18.53,Default,,0000,0000,0000,,but if you're the other side of that,\Nand you're the average American worker,
Dialogue: 0,0:02:18.53,0:02:21.83,Default,,0000,0000,0000,,then you can see it's not\Nsuch a good thing.
Dialogue: 0,0:02:21.83,0:02:25.41,Default,,0000,0000,0000,,["U.S. Share of Income Going to Labor vs.\NCEO-to-Worker Compensation Ratio"]
Dialogue: 0,0:02:25.41,0:02:28.53,Default,,0000,0000,0000,,Now, higher profit margins\Ndo not increase societal wealth.
Dialogue: 0,0:02:28.53,0:02:33.77,Default,,0000,0000,0000,,What they actually do is they\Nexacerbate income inequality,
Dialogue: 0,0:02:33.77,0:02:36.17,Default,,0000,0000,0000,,and that's not a good thing.
Dialogue: 0,0:02:36.17,0:02:38.63,Default,,0000,0000,0000,,But intuitively, that makes sense, right?
Dialogue: 0,0:02:38.63,0:02:42.25,Default,,0000,0000,0000,,Because if the top 10 percent\Nof American families
Dialogue: 0,0:02:42.25,0:02:44.61,Default,,0000,0000,0000,,own 90 percent of the stocks,
Dialogue: 0,0:02:44.61,0:02:47.57,Default,,0000,0000,0000,,as they take a greater share\Nof corporate profits,
Dialogue: 0,0:02:47.57,0:02:51.51,Default,,0000,0000,0000,,then there's less wealth left\Nfor the rest of society.
Dialogue: 0,0:02:51.51,0:02:54.30,Default,,0000,0000,0000,,Again, income inequality\Nis not a good thing.
Dialogue: 0,0:02:54.30,0:02:56.76,Default,,0000,0000,0000,,This next chart,\Nmade by The Equality Trust,
Dialogue: 0,0:02:56.76,0:03:01.61,Default,,0000,0000,0000,,shows 21 countries from Austria\Nto Japan to New Zealand.
Dialogue: 0,0:03:01.61,0:03:04.82,Default,,0000,0000,0000,,On the horizontal axis\Nis income inequality.
Dialogue: 0,0:03:04.82,0:03:08.12,Default,,0000,0000,0000,,The further to the right you go,\Nthe greater the income inequality.
Dialogue: 0,0:03:08.12,0:03:11.46,Default,,0000,0000,0000,,On the vertical axis\Nare nine social and health metrics.
Dialogue: 0,0:03:11.46,0:03:14.22,Default,,0000,0000,0000,,The more you go up that,\Nthe worse the problems are,
Dialogue: 0,0:03:14.22,0:03:19.47,Default,,0000,0000,0000,,and those metrics include life expectancy,\Nteenage pregnancy, literacy,
Dialogue: 0,0:03:19.47,0:03:22.21,Default,,0000,0000,0000,,social mobility, just to name a few.
Dialogue: 0,0:03:22.21,0:03:25.39,Default,,0000,0000,0000,,Now, those of you in the audience\Nwho are Americans may wonder,
Dialogue: 0,0:03:25.39,0:03:27.74,Default,,0000,0000,0000,,well, where does the United States rank?
Dialogue: 0,0:03:27.74,0:03:29.59,Default,,0000,0000,0000,,Where does it lie on that chart?
Dialogue: 0,0:03:29.59,0:03:31.29,Default,,0000,0000,0000,,And guess what?
Dialogue: 0,0:03:31.29,0:03:33.37,Default,,0000,0000,0000,,We're literally off the chart.
Dialogue: 0,0:03:33.97,0:03:35.79,Default,,0000,0000,0000,,Yes, that's us,
Dialogue: 0,0:03:35.79,0:03:37.95,Default,,0000,0000,0000,,with the greatest income inequality
Dialogue: 0,0:03:37.95,0:03:42.25,Default,,0000,0000,0000,,and the greatest social problems,\Naccording to those metrics.
Dialogue: 0,0:03:42.25,0:03:44.80,Default,,0000,0000,0000,,Now, here's a macro forecast\Nthat's easy to make,
Dialogue: 0,0:03:44.80,0:03:48.40,Default,,0000,0000,0000,,and that's, that gap between\Nthe wealthiest and the poorest,
Dialogue: 0,0:03:48.40,0:03:50.42,Default,,0000,0000,0000,,it will get closed.
Dialogue: 0,0:03:50.42,0:03:52.01,Default,,0000,0000,0000,,History always does it.
Dialogue: 0,0:03:52.01,0:03:54.16,Default,,0000,0000,0000,,It typically happens in one of three ways:
Dialogue: 0,0:03:54.16,0:04:00.56,Default,,0000,0000,0000,,either through revolution,\Nhigher taxes, or wars.
Dialogue: 0,0:04:00.56,0:04:02.89,Default,,0000,0000,0000,,None of those are on my bucket list.
Dialogue: 0,0:04:02.89,0:04:04.02,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:04:04.02,0:04:06.09,Default,,0000,0000,0000,,Now, there's another way to do it,
Dialogue: 0,0:04:06.09,0:04:10.23,Default,,0000,0000,0000,,and that's by increasing justness\Nin corporate behavior,
Dialogue: 0,0:04:10.23,0:04:12.99,Default,,0000,0000,0000,,but the way that we're\Noperating right now,
Dialogue: 0,0:04:12.99,0:04:16.98,Default,,0000,0000,0000,,that would require\Na tremendous change in behavior,
Dialogue: 0,0:04:16.98,0:04:20.93,Default,,0000,0000,0000,,and like an addict trying to kick a habit,
Dialogue: 0,0:04:20.93,0:04:24.44,Default,,0000,0000,0000,,the first step is to acknowledge\Nthat you have a problem.
Dialogue: 0,0:04:24.44,0:04:28.34,Default,,0000,0000,0000,,And let me just say,\Nthis profits mania that we're on
Dialogue: 0,0:04:28.34,0:04:30.64,Default,,0000,0000,0000,,is so deeply entrenched
Dialogue: 0,0:04:30.64,0:04:33.17,Default,,0000,0000,0000,,that we don't even realize\Nhow we're harming society.
Dialogue: 0,0:04:33.17,0:04:37.18,Default,,0000,0000,0000,,Here's a small but startling example\Nof exactly how we're doing that:
Dialogue: 0,0:04:37.18,0:04:40.25,Default,,0000,0000,0000,,this chart shows corporate giving
Dialogue: 0,0:04:40.25,0:04:45.63,Default,,0000,0000,0000,,as a percentage of profits, \Nnot revenues, over the last 30 years.
Dialogue: 0,0:04:45.63,0:04:51.40,Default,,0000,0000,0000,,Juxtapose that to the earlier chart\Nof corporate profit margins,
Dialogue: 0,0:04:51.40,0:04:55.53,Default,,0000,0000,0000,,and I ask you, does that feel right?
Dialogue: 0,0:04:56.76,0:04:59.70,Default,,0000,0000,0000,,In all fairness, when I\Nstarted writing this, I thought,
Dialogue: 0,0:04:59.70,0:05:02.16,Default,,0000,0000,0000,,"Oh wow, what does my company,\Nwhat does Tudor do?"
Dialogue: 0,0:05:02.16,0:05:07.69,Default,,0000,0000,0000,,And I realized we give one percent\Nof corporate profits
Dialogue: 0,0:05:07.69,0:05:09.42,Default,,0000,0000,0000,,to charity every year.
Dialogue: 0,0:05:09.42,0:05:13.32,Default,,0000,0000,0000,,And I'm supposed to be a philanthropist.
Dialogue: 0,0:05:13.32,0:05:19.62,Default,,0000,0000,0000,,When I realized that, I literally\Nwanted to throw up.
Dialogue: 0,0:05:19.62,0:05:22.10,Default,,0000,0000,0000,,But the point is, this mania\Nis so deeply entrenched
Dialogue: 0,0:05:22.10,0:05:27.26,Default,,0000,0000,0000,,that well-intentioned people like myself\Ndon't even realize that we're part of it.
Dialogue: 0,0:05:27.94,0:05:30.27,Default,,0000,0000,0000,,Now, we're not going\Nto change corporate behavior
Dialogue: 0,0:05:30.27,0:05:35.59,Default,,0000,0000,0000,,by simply increasing corporate\Nphilanthropy or charitable contributions.
Dialogue: 0,0:05:35.59,0:05:38.72,Default,,0000,0000,0000,,And oh, by the way,\Nwe've since quadrupled that,
Dialogue: 0,0:05:38.72,0:05:42.97,Default,,0000,0000,0000,,but -- (Applause) -- Please.
Dialogue: 0,0:05:42.97,0:05:46.71,Default,,0000,0000,0000,,But we can do it by driving\Nmore just behavior.
Dialogue: 0,0:05:46.71,0:05:49.75,Default,,0000,0000,0000,,And one way to do it is actually trusting
Dialogue: 0,0:05:49.75,0:05:52.17,Default,,0000,0000,0000,,the system that got us\Nhere in the first place,
Dialogue: 0,0:05:52.17,0:05:54.28,Default,,0000,0000,0000,,and that's the free market system.
Dialogue: 0,0:05:54.28,0:05:56.98,Default,,0000,0000,0000,,About a year ago,\Nsome friends of mine and I
Dialogue: 0,0:05:56.98,0:06:00.02,Default,,0000,0000,0000,,started a not-for-profit\Ncalled Just Capital.
Dialogue: 0,0:06:00.02,0:06:01.49,Default,,0000,0000,0000,,Its mission is very simple:
Dialogue: 0,0:06:01.49,0:06:03.99,Default,,0000,0000,0000,,to help companies and corporations
Dialogue: 0,0:06:03.99,0:06:09.26,Default,,0000,0000,0000,,learn how to operate in a more just\Nfashion by using the public's input
Dialogue: 0,0:06:09.26,0:06:15.57,Default,,0000,0000,0000,,to define exactly what the criteria are\Nfor just corporate behavior.
Dialogue: 0,0:06:15.57,0:06:17.99,Default,,0000,0000,0000,,Now, right now, there's\Nno widely accepted standard
Dialogue: 0,0:06:17.99,0:06:22.33,Default,,0000,0000,0000,,that a company or corporation can follow,\Nand that's where Just Capital comes in,
Dialogue: 0,0:06:22.33,0:06:27.65,Default,,0000,0000,0000,,because beginning this year and every year\Nwe'll be conducting a nationwide survey
Dialogue: 0,0:06:27.65,0:06:31.78,Default,,0000,0000,0000,,of a representative sample\Nof 20,000 Americans
Dialogue: 0,0:06:31.78,0:06:34.70,Default,,0000,0000,0000,,to find out exactly what they think
Dialogue: 0,0:06:34.70,0:06:38.58,Default,,0000,0000,0000,,are the criteria for justness\Nin corporate behavior.
Dialogue: 0,0:06:38.58,0:06:41.59,Default,,0000,0000,0000,,Now, this is a model that's going\Nto start in the United States
Dialogue: 0,0:06:41.59,0:06:44.23,Default,,0000,0000,0000,,but can be expanded\Nanywhere around the globe,
Dialogue: 0,0:06:44.23,0:06:46.11,Default,,0000,0000,0000,,and maybe we'll find out
Dialogue: 0,0:06:46.11,0:06:48.98,Default,,0000,0000,0000,,that the most important\Nthing for the public
Dialogue: 0,0:06:48.98,0:06:54.33,Default,,0000,0000,0000,,is that we create living wage jobs,\Nor make healthy products,
Dialogue: 0,0:06:54.33,0:06:57.58,Default,,0000,0000,0000,,or help, not harm, the environment.
Dialogue: 0,0:06:57.58,0:07:01.85,Default,,0000,0000,0000,,At Just Capital, we don't know,\Nand it's not for us to decide.
Dialogue: 0,0:07:01.85,0:07:03.85,Default,,0000,0000,0000,,We're but messengers,
Dialogue: 0,0:07:03.85,0:07:07.96,Default,,0000,0000,0000,,but we have 100 percent confidence \Nand faith in the American public
Dialogue: 0,0:07:07.96,0:07:09.19,Default,,0000,0000,0000,,to get it right.
Dialogue: 0,0:07:09.88,0:07:13.41,Default,,0000,0000,0000,,So we'll release the findings\Nthis September for the first time,
Dialogue: 0,0:07:13.41,0:07:15.85,Default,,0000,0000,0000,,and then next year, we'll poll again,
Dialogue: 0,0:07:15.85,0:07:18.15,Default,,0000,0000,0000,,and we'll take the additive step this time
Dialogue: 0,0:07:18.15,0:07:21.17,Default,,0000,0000,0000,,of ranking the 1,000\Nlargest U.S. companies
Dialogue: 0,0:07:21.17,0:07:25.72,Default,,0000,0000,0000,,from number one to number 1,000\Nand everything in between.
Dialogue: 0,0:07:25.72,0:07:28.55,Default,,0000,0000,0000,,We're calling it the Just Index,
Dialogue: 0,0:07:28.55,0:07:33.80,Default,,0000,0000,0000,,and remember, we're an independent\Nnot-for-profit with no bias,
Dialogue: 0,0:07:33.80,0:07:38.95,Default,,0000,0000,0000,,and we will be giving\Nthe American public a voice.
Dialogue: 0,0:07:38.95,0:07:43.16,Default,,0000,0000,0000,,And maybe over time, we'll find out\Nthat as people come to know
Dialogue: 0,0:07:43.16,0:07:45.18,Default,,0000,0000,0000,,which companies are the most just,
Dialogue: 0,0:07:45.18,0:07:49.22,Default,,0000,0000,0000,,human and economic resources\Nwill be driven towards them,
Dialogue: 0,0:07:49.22,0:07:51.19,Default,,0000,0000,0000,,and they'll become the most prosperous
Dialogue: 0,0:07:51.19,0:07:54.02,Default,,0000,0000,0000,,and help our country\Nbe the most prosperous.
Dialogue: 0,0:07:55.35,0:07:59.46,Default,,0000,0000,0000,,Now, capitalism has been responsible\Nfor every major innovation
Dialogue: 0,0:07:59.46,0:08:03.61,Default,,0000,0000,0000,,that's made this world a more inspiring\Nand wonderful place to live in.
Dialogue: 0,0:08:04.58,0:08:07.44,Default,,0000,0000,0000,,Capitalism has to be based on justice.
Dialogue: 0,0:08:07.44,0:08:09.65,Default,,0000,0000,0000,,It has to be, and now more than ever,
Dialogue: 0,0:08:09.65,0:08:13.48,Default,,0000,0000,0000,,with economic divisions\Ngrowing wider every day.
Dialogue: 0,0:08:13.48,0:08:16.50,Default,,0000,0000,0000,,It's estimated that 47 percent\Nof American workers
Dialogue: 0,0:08:16.50,0:08:19.80,Default,,0000,0000,0000,,can be displaced in the next 20 years.
Dialogue: 0,0:08:19.80,0:08:21.77,Default,,0000,0000,0000,,I'm not against progress.
Dialogue: 0,0:08:21.77,0:08:26.65,Default,,0000,0000,0000,,I want the driverless car and the jet pack\Njust like everyone else.
Dialogue: 0,0:08:26.65,0:08:32.50,Default,,0000,0000,0000,,But I'm pleading for recognition\Nthat with increased wealth and profits
Dialogue: 0,0:08:32.50,0:08:37.93,Default,,0000,0000,0000,,has to come greater\Ncorporate social responsibility.
Dialogue: 0,0:08:37.93,0:08:43.66,Default,,0000,0000,0000,,"If justice is removed," said Adam Smith,\Nthe father of capitalism,
Dialogue: 0,0:08:43.66,0:08:49.42,Default,,0000,0000,0000,,"the great, the immense fabric\Nof human society must in a moment
Dialogue: 0,0:08:49.42,0:08:53.63,Default,,0000,0000,0000,,crumble into atoms."
Dialogue: 0,0:08:53.63,0:08:57.39,Default,,0000,0000,0000,,Now, when I was young,\Nand there was a problem,
Dialogue: 0,0:08:57.39,0:09:01.57,Default,,0000,0000,0000,,my mama used to always\Nsigh and shake her head and say,
Dialogue: 0,0:09:01.57,0:09:05.63,Default,,0000,0000,0000,,"Have mercy, have mercy."
Dialogue: 0,0:09:05.63,0:09:10.18,Default,,0000,0000,0000,,Now's not the time for us,\Nfor the rest of us to show them mercy.
Dialogue: 0,0:09:10.18,0:09:13.37,Default,,0000,0000,0000,,The time is now for us\Nto show them fairness,
Dialogue: 0,0:09:13.37,0:09:15.85,Default,,0000,0000,0000,,and we can do that, you and I,
Dialogue: 0,0:09:15.85,0:09:21.10,Default,,0000,0000,0000,,by starting where we work,\Nin the businesses that we operate in.
Dialogue: 0,0:09:21.10,0:09:24.46,Default,,0000,0000,0000,,And when we put justness\Non par with profits,
Dialogue: 0,0:09:24.46,0:09:28.41,Default,,0000,0000,0000,,we'll get the most wonderful thing\Nin all the world.
Dialogue: 0,0:09:28.41,0:09:31.77,Default,,0000,0000,0000,,We'll take back our humanity.
Dialogue: 0,0:09:31.77,0:09:34.42,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:09:34.42,0:09:38.25,Default,,0000,0000,0000,,(Applause)