question is whether capitalism whose capitalism i mean it's 201920 years ago we had the strongest economy known to man with you know everything technology and the promises of the internet and efficiency the lowest real rate of unemployment back then versus real unemployment right now being a multiple of what the government states that it is so why was capitalism working so splendidly back then versus the over indebted over leveraged version of it right now it really begs the question over if it's classical kind of adam smith and david ricardo joseph schumpeter capitalism as taught in college and grad school or if it's more of an i and randy and servile of the fittest at any and all costs by any means necessary vulture market fundamentalism that is built on increasing amounts of financial leverage and speculation versus actual manufacturing productivity and

this is stand ability of a middle class i don't think it's working in the same way that it had in decades past ok it's good alexander in indianapolis i mean i think that's the point here is that i have i'm actually for capitalism ok i don't want any misunderstanding but i'm i want to work for everyone or more people and it's working for now ok because we we see you know we hear you know depending on what side of the political aisle you are you know how well the economy is doing well it's doing really well for rich people and that is undeniable when it goes a little bit further down i think it's a lot more nuanced than the talking points that you hear on c.n.n. or fox go ahead alexandra. i think i think you're right peter it's always more nuanced than that the talking points from here on fox but i mean adam smith himself wasn't naive and he recognized he wrote in his wealth of nations about the that that that free markets would produce inequality he wrote for everyone rich men there will be $500.00 poor men and right but for him the universal opulence that

free markets would produce was worth was worth it and we see that empirically objectively that that capitalism has has done a lot of good and reducing global poverty the number of individuals who live on a dollar a day has reduced by 80 percent in the last 3 and a half decades and so you can you can argue with with with facts like that ok jeffrey more or less the same question to you i mean there's a lot of things are you t. particularly in the united states in europe there's a lot of austerity there's not a lot of hope actually ok i mean it's treading water in europe in the united states again depending on how you want to interpret numbers i mean i'm glad the stock market's doing really well but that doesn't really tell you how the average person is living i mean i think they're very much separated they have been for the last 40 years so i mean it is capitalism serving the interest of the majority

and shouldn't be more than just a majority everyone go ahead jeffrey. there are very specific reasons i think why growth levels declined over the last 40 years and this is i think what we're really talking about here and you know people have expectations that every generations can be better off than the previous generation right there so that was the way we live there was an unsupported post-war era and that's something happened you know in the early 1970 s. dragged down the state of growth and i think that something is not capitalism it's over regulation everything's over the regulators very difficult to to have for if you are of i.p.o.'s that we used to for example just because the stock market is heavily everywhere you regulated financial regulation is afflicted us in a grim way ever since $2800.00 when they tried to fix the system and actually made everything worse worse it has produced too much leverage and. this is again i think we're using the wrong term it's like not capitalism i think it's really regulation and central banking and you know just

a lack of access as wrap of the growth levels i mean at some some level in some way it's outrageous actually that we've we've come to this expectation rolling out to grow what one or 2 percent a year this is crazy in the gilded age you know we had double double digit growth because the economy was much freer if we would free up the financial system get some sound money and get rid of the regulatory barriers and here's what's interesting about what's going on right now with the trump administration in some ways there's a lot of deregulation and that's good in other ways there's even more i mean what trump has done to trade is is creating a kind of chaos and it's increasing prices at eliminating export markets and distributes supply chains and it's really massively reduced investment business investment in particular in the manufacturing sector sector in the u.s. and that's only going to reduce grows more and guess what people are going to blame

not protectionism by regulation once again near a budget where. capitalism oh it's not working it's not working so i think we just have the wrong name for the problem well i don't think i think yeah i think it's actually the right goal to find regulatory and i think it is the right name because that's what people are saying ok as a juxtaposition to socialism so i think that's important here in a pie let me go back to you i mean one of the most important things out here we had to keep moving here you know the consumption is the most important part of economic growth right now but if that is under strain it is under strain i mean the number of people that have low paying jobs now is extraordinary and then the savings level is negligible a shock can really hurt tens of millions if not hundreds of millions of people and it seems to me that if you're not concerned about people's consumption because that is the golden goose that lays the egg here that drives the economy shouldn't we be looking more at families and keeping families together and speaking as

a conservative it seems to me that makes much more more sense because this whole financial ization of the economy it just makes the rich super super rich which is just fine with me but i worry about the middle class go ahead guy. i mean what middle class kind of. you know what i was saying earlier as far as you know the post-war war phase of a middle class a building has been dissipated over the past 20 years. you know people in suburbia and rural parts are wondering why the number of homeless have skyrocketed they attributed to laziness or and or drug abuse. in part because dad a dad a proper dad a real transparent dad is not plentiful from the government and hence it causes confusion so that people blame citizens especially after the 08 crisis which tweaked the economy it was already an over leverage system the government

came in to leverage to do even further mound of debt in the system that's announced is a multiple of grave multiple of what it had been before the real rate of debt including for instance a derivatives notional value of derivatives contracts globally is in the hundreds of trillions of dollars not even a number at that point we face catastrophe in a 2nd great depression in less than 90 years and yet people are calling it a great recession they're evading it the other thing earlier you were mentioning. capitalism versus socialism i mean the confusion is over there is a socialism existing within america in the u.k. it's a socialism essentially for the rich oh yeah oh for fox and it's basically take if it was genuine capitalism which involves competition comparative advantages as written about. then what as recorded written about what you'd have as is failure

of going concerns that are not going anymore instead you had a socialism come in and bail out banks calling other banks and various back back of the curtain political decisions that were made over lehman brothers and bear stearns specifically and you're about to have a reprise of it because there's so much leverage in the system collaterals not being trusted in between banks and counter party insurance firms and yet the fad and very counter democratic and counter a capitalistic practices is keeping its mouth sealed over who's in trouble how they're in trouble why they're in trouble how many further tens of billions of dollars per night is being put into the overnight lending reposed market in order to bail out already bankrupted firms because they know better nobody else in the in the in the that's all it is is that evil of understanding their lucid ation that's what they said in prior to the 2008 crisis here alexandria hi kind of got ahead of

me here and what i wanted to ask is that there is a common criticism and i think it's an interesting characterization is that there is socialism in america and it's for the rich and it's the it's the really everybody else has to go through the rigors of capitalism there is something to that go ahead and indianapolis. yeah it's it's interesting i think the most effective way of defending capitalism today is through the words of the father of capitalism himself out of smith who is an intellectual hero of mine and smith said over and over again in his famous book the book that made him famous miss day the theory of moral sentiments that any system any all good economic system free markets or otherwise would only be as effective as good as the people who as the virtue of the more ality of the people who who lived under the system and i think that that's true today in theory of moral sentiments miss talks about did the need for human embassy the need for compassion the need for and the need for sympathy

and i think that that is one problem with the rise of inequality today where it's increasingly of that there that that the case that there are 2 americas where people in upper echelons of society have no idea how people and the irish ones live in the struggle they have so so. well ken i think that's one reason why we see a socialism on the rise ok a way to go to a short break here you know one thing i want to say here the one good thing about having your own program we get to talk about adam smith another really smart people i like that ok after a short break we'll continue our discussion on capitalism today with r t. ok in the special effects something we can benefit says one of the men of the. book

just get us a little bit also as. you talk to home don't think in russia think was over forget it. but your book to talk about through a couple is a sure we have them all still some of the models are good. russian methods eligibility for the international competition says at stake this includes events like the tokyo olympics and the fifa world cup in qatar if i am in the early as last year we can all just up here when you can one of those just as it was 4 years ago in moscow anti-doping plavix at the center of the scandal so who tampered with the doping samples database and one does greegor you want to give have to do with it and you know she still has reached out to paul doesn't mean you know. what's up with the spokesman that he's the pasha on the just book you will ship by to expose me in the ocean touch a little to the polish you know there's no. one

else shows same wrong but old clothes just don't call. me old yet to stamp out these days to come out ahead and engage me because of the trail. when so many find themselves worlds apart we choose to look for common ground. and there was only johnson. and i just got out of prison for. 41 years. i'm 72 years old. i got arrested 4 times some might. go on like this everything was taken out of.

my work and i. think it was. meant to snow man it looks a little bit like me. about. homicide. now. you're going. to go. on a friday try to try to give. us no good something right to. welcome

back across stop where all things are considered i'm peter lavelle we're discussing capitalism. ok let's go back to jeffery in new york and in my introduction we to i mentioned the important issue of inequality and he says side. all societies through history when you have a ratio of inequality get so high you have political instability and it's something everyone should look at and i think that really accounts for a lot of discontent around the globe is because that ratio has had a certain critical mass how do we deal with that inequality here i mean i said in the 1st part of the program you know i don't how this whole you know elizabeth warren mantra you know bernie sanders mantra against billionaires i don't i'm not

against billionaires i'm i guess i really want more equality and i'm coming from a conservative perspective here because i'm looking at the health of society the health the health of the middle class is ok because i believe in the middle classes the rich i'm not so i don't care about them they're rich go ahead jeffrey. you know there's 2 ways you can bring about more equality in society one is by lifting up the poor and the middle class to be richer and i think that's what that what's happened the data actually show this where the other way is just to just to abolish billionaires or by our level of leveling american poet to no leveling is not going to work at the best catastrophic so i'm actually i actually worry about the term equality here because of 1st it's a term derived from math so it's very contingent on the proper data my colleague phil magnus said has been running the numbers now for the last 5 or 10 years and

he's got completely revised data in the showing that there's been no rise in inequality as sides in the united states about this since the 1960 s. a lot of that is being manipulated for political reasons i would caution you to just you know except. the proud of that you get a mainstream press about this whole time and look around to even question about this idea that somehow the the poor are suffering in this to america the last of it you know the poor have to do it have a so much access to good services like there's never been before that wal mart's are ubiquitous prices are falling for clothing and food in america just spent 3040 percent of the budgets of food now it's less than 10 percent you know the basic access has been almost universal laws that i really sometimes i think a lot of this talk about it equality is just a bunch of convention about but nothing is done so this is perfect right but i think what we're really interested is not more equality bit more opportunity

looking for avenues ok and i think that's going to come about through for the for the for the do very well for the deregulations i think we should be a little more precise in our terminology what we want is is equal access and opportunity for everybody and for everybody to get richer right that's that that's what i think we should seek i was talking to a socialist by the way the on a on a train in new york. she said i'm a socialist and i'm like ok this is going to be a long train trip and i thought out i asked her. about this isn't the thing that we want everybody to be universally rich she said no we do not because the rich always get rich at the expense of everybody else so and there so i think she is wrong and in a true capitalistic society every trade that takes place should be mutually advantageous advantageously can all make wealth together and a cooperative yeah good way came in that little our latest perspective on why i lived in communist eastern europe in the 1980 s.

nobody has to tell me about communism in marxist theory i lived through it ok and it is a dead hand full stop ok ok pi a lot of inequality to write a lot of and there was an enormous amount of inequality and communism ok i absolutely had to be good i want to keep that inequality going let me go to pi here but there's a very but there's the perception i agree with ok jump in go ahead that's a point of program go ahead in a way yeah i i agree with i agree with geoffrey were guarding the earlier statement that he had made a couple of things involving the issue of sound money that he had referenced as well as what he just said as far as opportunity if you're lazy and you know you just don't want to work then there's really kind of no need to kind of apply 3 the ball of equality to you however if you want to be socially immobile and you're willing to work you should be able to have some advantage within a genuinely capitalistic society agreed on them as we don't live right now

currently in a genuinely capitalistic society jeffrey should really really evaluate what we're genuinely living in the federal reserve is this socialistic of an institution by definition i mean marx was very pro central bank i agree with as ken exists and is being socialistic again as we had referenced earlier towards a very. a very small percentage of people that have purse on pressin and levels of insider information yeah and shared amongst each other and have managed to gain aggressively over the past certainly over the past decade let alone really since the dot com bubble burst or as you know your average joe that what she wishes to work harder have his or her kids. do better than his or her generation did have it that much more difficult why because jeffrey was mentioning that inflation and and other data is not as bad as it seems it is ok if you be picky and choosey

with regard to inflation you're not listing insurance premiums you're not listing education costs you're not listing medical costs that tend to put people into bankruptcy and and outright homelessness fairly rapidly then you know you're not you're not you're not you're being you're being totalitarian and i use that word tactically you're being totalitarian with regard to information dissemination to quote your rough paraphrase your guest in the midwest you need you know the smithy and morality that was referenced earlier resides on a bedrock of proper transparent credible honest information and the worst the system the bigger the lies and we're suffering from systematically lying from the fed and the bureau of labor statistics and others on down to the point where people are unable to plan the currency itself is so graphic catastrophic lee debased that

we didn't know what it means anymore and it's by design a nerd and then replace this dollar that's essentially a used dish rag by something digital nontransparent auditable and turned off of will for lack of a better word visa via the block chain within the next several years because the powers that be know what they what they're doing. they've known that that all of the thief dollars per se is going to have a shelf life to it that's why we went off the gold standard back in $71.00 and that's not coincidentally the timing of that with regard to you know gradually dissipating. you know lifestyles and hollowing out of the middle class is because the currency itself is not ok alexandria one of the things that it's touched upon it already in this program but you know i think it's something we should be really worried about is the generation in their indebtedness and their prospects prospects for the future when you when you're laden with so much debt you ended up living

with your parents in your early thirty's you're not getting a job in the field that you study which you know that happens a lot but when you study something with studies at the end of it well you should be as a head a heads up you're not going to do that ok and being after university and getting a degree a degree you're in low wage jobs jobs and that is again this appeal of socialism because they see this it's so insurmountable they're not going to do better than their parents and that is vivid that's very real when you're living in the basement that's really real go ahead alexandra. i think you're right peter that this this issue of rising student debt and a dearth of well paying jobs has contributed to mistrust in free market system as being a system that works for everyone i absolutely agree but i mean as was mentioned by my fellow panelists just a few moments ago objective measures of standard of living are i mean we're living

longer where we are we are more educated you know a litany of these touchstones for for general well physical well being and objective standards of living are up yet i think what's important keep in mind is that we are not just you know physical beings we're social beings were spiritual beings we're emotional beings as well and we do have this sort of crisis of meaning where a few moments ago peter you talked about the family how do we support the family we see the family breaking down the church breaking down communities breaking down all across the country and i think that people are displaced daily these are the traditional foundations of where people derive their meaning from and without those people are looking to to ideology in this describes the rise especially them and tribalism and other radical ideologies as well and you also mentioned a little while ago peter eastern europe and your time there and i think that's a really powerful illustration there's a great book by a gentleman named ernst gellman called the conditions of liberty where he talks about this this struggle in the post soviet era where in the west we were well

meaning and tried to airdrop these democratic and free market institutions on these post soviet countries and they didn't work because there was this lack of community this lack of social trust this lack of civic bonds between individual citizens that have been so corroded by years of mistrust under under communism and so i think it's important for this missing in point that any system is only as strong as as individuals and individual communities as well you know it's kind of a twist on that great churchill line. i kept the worst of all except for all the others ok but let's go to jeffrey go back to jeffrey new york but the other one that's being touted so much is socialism and on this program we've made a number of programs on the appeal of it i mean i find it a poor and but it does get a lot of traction and we have presidential candidates speaking about it in the most positive way and i think that is a disastrous path i mean i think capitalism as it exists today calling some of the

things that pie and say needs to be reformed in modified but don't throw it all out no way because i saw i saw the past and i saw the past and it failed we'll give the last minute to jeffrey go ahead. yeah it's been it's been unbelievable to see the rise of social side the ology in the last you know 10 years and that says i never i was i remember when it all collapsed in 1009 i thought well you know we don't have to worry about that in wherever we are socialist and where well here we are and socialism is and all the academia young people are supporting made sure they know what it means maybe that means rule by social media or some back out of the know what socialism is new is popular and i worry about it's an absolute cancer you know i do think it is 1st of all it's an academic you have sort of exercises coming out of the universities yet which are largely subsidized by government and by the brits terrible stew student loan problem which is

a very serious issue which is the sells itself a socialist a constitution because kids are getting themselves massively in debt and 66 figures and barely given their greed is not new user degrees once they get out of out of college and then they get really bitter because they've got another 20 years of payments coming out of in the cab the carberry bankruptcy if they don't pay him that as well and i will tell him that's all ignore that it's all the time we have here our care fund it's all it's all the jobs are we run a time and i want to know my my bow no hear me and that educational system is a fraud and it should be ended in death for audit ok that's all the time we have many thanks to my guests in new york los angeles and in indianapolis and thanks to our viewers for watching us here at our d.c. unix time and remember crosstalk rules.

in this community there are people who believe that it's ok he is. it's really hard there are no jobs and you see the kids that ask and as a parent. i can come up with arguments and there's a lot of conflict within the game and between the teams close to the conflict i would say. there is maybe. close one on the children's cosimo each other is good because the state of california alone makes $6000000000.00 a year off to prison complex just to get some point where. you don't care. thank you because we knew coming once we got in her shoes no problem was he didn't

know what to do he was trapped in this tiny little wired coach we don't need a crate with him he will just stir freaking out and she will want to bring in anywhere near. breeding dogs or caged in the into lane conditions on puppy farm i mean 67 years you know they've been locked up in a cage outside you see no protection from the weather the heat you know the cold air the rain the snow the founder nothing they have no protection. to get what you . can get through kid a. across the u.s. cruel puppy mills are supported by dog shows and pet stores most of the puppies that are coming from these large scale factory farming kind of operations are being sold in stores even joined a group businesses are involved but can't get them on santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is

coming from huge agricultural groups and industries that have nothing to do with jobs don't buy dog. mats geysers financial survival guide liquid assets not those that you can convert in zigzags quite easily. to keep in mind no ousted from into a pleasure to watch because record. my feeling with this world it's worse now as we're so confused and fearful and the certain generation that's controlling all the politics around the world still when that generation dies off and children are brought off the smooth really are less materialistic don't really care about these things concrete even more automobiles want to live right beside her job want to ride a bicycle this movement is global and it's going the world is going to cost to go at the start. actually it's going to change.

this hour's headlines stories a member of the populist alternative for germany party say's extremists threaten to assassinate her claiming that you've been left at the time her death. toll is larger in a new disney series. is proving more popular than any of the u.s. 2020 democratic hopefuls ending online. in the u.s. for the mom acquitted of murdering all our black teenager and 2012 launches a lawsuit demanding $100000000.00 in damages the killing of trayvon martin sparked the black lights.