How a Historian Nailed Billionaires for Their Greed at Davos | NowThis

NowThis Impact

30 Jan 201904:34

Summary

TLDRAt Davos, amidst discussions on participation, justice, and equality, the issue of tax avoidance by the wealthy is notably absent. The speaker criticizes the focus on philanthropy over fair taxation, highlighting historical examples of high tax rates in the US during the 1950s. They emphasize the need for governments to address tax leakage and ensure a fair distribution of wealth. The conversation also touches on the quality of jobs, workers' rights, and the importance of dignified employment and access to healthcare for addressing global inequality.

Takeaways

😀 The speaker expresses a sense of bewilderment at the Davos conference, noting the irony of private jets contributing to environmental issues while attendees discuss sustainability.
💼 The issue of tax avoidance is highlighted as a significant problem that is not being adequately addressed at the conference, despite discussions on participation, justice, and equality.
💰 The speaker calls for a focus on tax systems rather than philanthropy, emphasizing the need for the wealthy to pay their fair share.
🏛️ Historical examples are provided to argue that high marginal tax rates can work, referencing the United States in the 1950s under President Eisenhower.
💡 The discussion points out the inadequacy of the current tax system, which allows for significant wealth to be transferred to tax havens, depriving developing countries of much-needed funds.
🌍 The panel is criticized for being one-sided, with a focus on tax issues while overlooking other important factors such as job quality and workers' rights.
👩‍💼 The quality of jobs is emphasized as crucial, with examples given of workers in the poultry industry who face inhumane working conditions.
🤝 The importance of workers' rights, including the ability to unionize and negotiate for better wages, is underscored as essential for addressing inequality.
🏥 Access to healthcare is identified as a critical factor in preventing people from falling into poverty, with many lacking basic health coverage.
👏 The speaker receives applause for their passionate argument, indicating that the audience resonates with the points made about dignity and inequality.

Q & A

What is the speaker's first impression of the Davos conference?
-The speaker finds the Davos conference bewildering, noting a contradiction between the wealth displayed (1,500 private jets) and the discussions on justice, equality, and climate change.
What main issue does the speaker feel is being overlooked at the conference?
-The speaker believes that tax avoidance and the rich not paying their fair share is the key issue being ignored, despite the focus on justice and equality.
How does the speaker compare the conference to a firefighters' conference?
-The speaker feels it's like attending a firefighters' conference where no one is allowed to talk about water, emphasizing the neglect of discussing the most critical issue—taxation.
What does the speaker criticize about philanthropy in relation to tax avoidance?
-The speaker criticizes philanthropy as a distraction, arguing that instead of focusing on charitable giving, the wealthy should be paying more taxes, which would have a greater societal impact.
What historical example does the speaker use to support high marginal tax rates?
-The speaker references the United States in the 1950s under Republican President Eisenhower, when the top marginal tax rate was 91%, suggesting it was a successful period for the economy.
How does the speaker respond to Michael Dell's question about high tax rates?
-The speaker points out that the U.S. in the 1950s, with a top marginal tax rate of 91%, is an example of where high tax rates worked, countering Dell's skepticism.
What is the estimated financial loss due to tax avoidance according to the speaker?
-The speaker claims that $170 billion is lost annually to tax havens, which denies developing countries the resources they need.
How does another panelist challenge the speaker's focus on taxes?
-Another panelist mentions that the U.S. has low unemployment rates and reduced poverty globally, suggesting that the conversation should move beyond just taxes.
What does the speaker say about job quality in the context of low unemployment rates?
-The speaker argues that while there may be jobs, many of them lack dignity, citing U.S. poultry workers who aren't allowed proper breaks and are forced to wear diapers at work.
What broader issue does the speaker associate with the lack of dignity in jobs?
-The speaker connects job dignity to larger issues like the lack of worker rights, such as unionization and fair wage negotiations, particularly in the context of globalization.

Outlines

00:00

💼 Critique of Wealth Disparity at Davos

The speaker expresses their bewilderment at the Davos conference, noting the irony of 1,500 private jets flying in to discuss environmental concerns. They criticize the lack of discussion on tax avoidance and the rich not paying their fair share. The speaker calls for a focus on taxes rather than philanthropy, citing historical examples of high marginal tax rates in the United States during the 1950s under President Eisenhower. They argue that the current tax system allows for significant wealth to be funneled into tax havens, depriving developing countries of much-needed funds.

Mindmap

Keywords

💡Davos

Davos refers to the World Economic Forum's annual meeting held in Davos, Switzerland, which is a gathering of global leaders from business, politics, and civil society to discuss pressing economic and social issues. In the video, the speaker expresses bewilderment at the disparity between the high-level discussions on environmental and social responsibility and the actual behaviors of attendees, such as the use of private jets.

💡Tax avoidance

Tax avoidance refers to the practice of legally using tax laws to reduce one's tax liability. In the context of the video, the speaker criticizes the lack of discussion on tax avoidance at Davos, suggesting that the wealthy and corporations are not paying their fair share of taxes, which contributes to economic inequality.

💡Philanthropy

Philanthropy is the act of donating money or resources to support causes, organizations, or individuals in need. The speaker argues that instead of focusing on philanthropy, which can be seen as a way for the wealthy to cleanse their image, the conversation should shift towards ensuring that taxes are used effectively to support society.

💡Tax havens

Tax havens are jurisdictions that offer low or no taxes for individuals and businesses. The speaker points out that a significant amount of money is funneled into tax havens, depriving developing countries of much-needed revenue. This practice is seen as a form of tax avoidance that exacerbates global inequality.

💡Top marginal tax rate

The top marginal tax rate is the highest tax rate applied to an individual's taxable income. The speaker mentions that in the 1950s, the United States had a top marginal tax rate of 91%, suggesting that higher tax rates on the wealthy can be effective in reducing inequality.

💡Estate tax

Estate tax is a tax on the transfer of a deceased person's wealth. The speaker uses the example of high estate taxes in the 1950s to argue that taxing the wealthy can be a means of redistributing wealth and reducing economic disparities.

💡Globalization

Globalization refers to the increasing interconnectedness of the world's markets and cultures. The speaker criticizes the impact of globalization on job quality, suggesting that while it may create jobs, it can also lead to low wages and poor working conditions, as exemplified by the plight of poultry workers.

💡Dignity of work

The dignity of work refers to the idea that all jobs should provide a decent standard of living and respect for workers. The speaker emphasizes the importance of not just creating jobs but ensuring that they are dignified, with fair wages and working conditions.

💡Health care

Health care is the maintenance or improvement of one's health through the prevention, diagnosis, and treatment of diseases. The speaker highlights the issue of inadequate health care, particularly for those living on the edge of poverty, as a significant factor contributing to economic insecurity.

💡Poverty

Poverty refers to the state of being extremely poor. The speaker challenges the notion that low unemployment rates are an indicator of economic well-being, arguing that many people are still living in poverty due to factors such as lack of health care and job insecurity.

💡Unionization

Unionization is the process of forming or joining a labor union. The speaker points out that in many countries, workers are not allowed to unionize, which prevents them from collectively bargaining for better wages and working conditions, contributing to a lack of dignity in work.

Highlights

Speaker expresses bewilderment at the disparity between the environmental rhetoric and the use of private jets at Davos.

Sir David Attenborough's presence at Davos is noted, highlighting the environmental discussions.

Criticism of the lack of discussion on tax avoidance and the rich not paying their fair share.

Mention of a single panel on tax avoidance at the media center with limited participation.

Call for a shift from talking about philanthropy to focusing on tax justice.

Historical reference to the United States' high marginal tax rates in the 1950s under President Eisenhower.

Challenge to the notion that high tax rates do not work, using the US in the 1950s as a counterexample.

Discussion on the tax system's failure, allowing billions to be moved to tax havens.

Emphasis on the need to look at the business model and the role of governments in tax collection.

Contrasting view on the US having the lowest unemployment rates ever recorded.

Critique of the focus on unemployment rates rather than the quality of jobs created.

Example of poultry workers in the US having to wear diapers due to lack of break time.

Argument that the discussion should be about creating jobs with dignity, not just jobs for the sake of employment.

Reference to the World Bank's data on the vulnerability of billions to medical bills and poverty.

Call for a broader discussion on inequality that includes access to healthcare and dignity, not just employment figures.

Applause from the audience indicating agreement or support for the points made.