Why our Economic System in not Sustainable | Christian Kreiss | TEDxTUBerlin
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- čas přidán 7. 01. 2017
- This TED talk shows how our existing property rights system necessarily triggers rising rent payments, thus creating rising inequality of wealth and income. The increasing money flows are used by the rich to invest in all kinds of fixed assets. But mass incomes lag behind. So overcapacities are created, a wedge is formed between offer and demand: a bubble forms and an inevitable bust follows. This is where the world economy now is heading for: Sooner or later we will see a very deep recession if not worse. We could avoid a coming depression by quite simple political measures: by reducing inequality that has built up during the last 35 years.
Prof. Dr. Christian Kreiss was an investment banker for seven years before becoming professor for finance at Aalen University in 2002. Today he is strongly committed to change our economic system which, in his eyes, is not only unfair but also unsustainable.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at ted.com/tedx
Thank You Christian Kreiss for your attempt to educate us about this highly complex problem. You say a lot of what I have said including the fact that the common notion of, "letting your money work for you" is highly misleading from the fact it is people who are doing the work. I agree with much of what you say BUT the solution is far from simple ... even if it were done through taxes it would still be very complicated and pron to corruption. It will not be an easy thing to change the notion of those who feel they deserve to have golden toilets while others go hunger to allowing "their" money to be taken from them ... I Love how you point out that many of the very wealthy are not even aware of how they get their money because they hire others to do that work. While greed and the ability to allow exploitation is a big factor; sometimes it (the greed and exploitation) is kept at such a distance we really don't understand how this is happening. We must have more effort to stop what is happening and mostly more effort to create a new economic system. Love & Peace to All
I had the same reaction to his speech as you. "It will not be an easy thing to change the notion of those who feel they deserve to have golden toilets while others go hunger to allowing "their" money to be taken from them" is indeed going to be the hardest things about this. The concept of "rich" only exists because "poor" exists. In today's society, excess wealth is only seen as a good thing; however, it seems to me that excess wealth is only comparable to cancer UNLESS the owner of that wealth decides to be a benign cancer rather than proliferate. Money does not work, other people work and money "works" by taking a portion of the value of that work.
Empty homes and homeless people.
And people tell me this is, somehow, justifiable.
Exactly. Capitalism is the root of almost all hardship on this planet. The vast majority of crime is committed due to poverty, and poverty is due to capitalism.
People have to work for what they need and can not have something for free. The reason those people don't have homes is beacuse they don't provide enough value to other people.
1. Far more property is not acquired by money earned by work but by money earned through interest (check the statistics) 2. In Germany about 80% of housing cost is interest, meaning it is not used for building or maintaining houses, but becomes free income for the bank or capital/house/stock/sharehold owner. 3. If people in need of a home would just have to pay 20% of the rent (just 20% is needed for building and maintaining a house in average) everyone would be able to afford a house. 4. If we would save as well the 30 to 40% free income paid to some unproductive owner, whenever any product is sold, no one would have a problem creating enough income. 5. And if all this "interest" is not getting sucked out of the productive economy anymore, but stays in the hands of the "regular" consumer, than he will create more jobs and prosperity by what he does best consuming...
@@radbugif I was hungry and by law you had to give me part of your lunch every day. How would that make you feel.
@Radioactive Kripy homeless (very poor individuals) existed even before capitalism (as we know); take Egyptian dynasties and Greece civilization BCE, as examples. Capitalism is just a variation of an economical system enhancing social stratification.
There was a cultural group (isolated until the 1970's) that has shown how money is not needed ... people who lived well and there was no poverty or hunger or pollution or crime ... it was like a paradise (to me because the focus was on everyone living well together ... you can read about it in a book called, "Ancient Futures, Learning From The Ladakh" To me this is the Real solution to live as these folks did. Love & Peace to All
very few people like yr idea, seems people love struggle, inequality and murder , suicide, mental sickness,
To understand the issue in this video I'd like to give a short definition of sustainability and discuss the term and related topics. Sustainability can be seen as the management of environmental and resource systems so that their ability to support future generations is not diminished. The term “sustainable development” is more difficult to define, and has given rise to widely different and at times conflicting interpretations. For environmentalists and conservationists it means the process of development towards a truly sustainable economy that respects environmental and resource limits. But too often others use the term sustainable development as a synonym for sustainable economic growth.
In contrast to that view, many scientists believe that sustainable economic growth is an oxymoron and self-contradictory. Adherents of this view point out that, since the economy is a subset of our non-growing ecosystem, development, in order to be sustainable, can only mean qualitative change without material growth.
Given the damage to our environment and resources resulting from the present scale of human economic activity, the argument against further material economic growth appears to be unassailable. The need now is to go beyond the debate on growth vs. non-growth and address the fundamental question: what scale or size of global economic activity would be sustainable indefinitely? The preponderance of evidence clearly indicates that the global economy, to be sustainable, must be far smaller than it is today.
Surely, further research in the field of degrowth and a steady-state economy needs to be done and awareness in society surely needs to be raised. As uncertain an accurate und flawless implementation of a non-growth system might seem, as certain is however the fact that only an abandonment of the predilection of growth will guarantee environmental sustainability!
Great, thanks!!!
Agree with the current situation that’s being described, but I think the suggested solutions could be elaborated more
There is no solution. Humans are too selfish to develop a general welfare plan
8:38 I hope near end of talk he plays some badass boogie woogie on that piano behind him .
This guy should be the president of the world . He's got my vote .
Gosh... it sounds so simple and easily attainable: this UTOPIA of which he speaks. Why hasn't anyone thought of these things before!? Really, all we're lacking is a LEADER, DEAR to the people. You know a (wo)MAN, STRONG enough to unite us. 🙄
The problem is human brains. They're a destructive aberration with a higher murder rate than any other species. Humans are also the one species that is not environmentally sustainable and goes against organic chemistry.
Human skulls contain a death cult.
In many ways, we are thee dumbest species that has ever existed or will ever exist. The fact is, if you kill off your own planet and can never get to another solar system to survive, then you might as well possess the intelligence of a rock.
Since the nearest solar systems are too far away, it would be best if we lived sustainably for the health of the planet for the next billion years until the sun melts us at the end of it's life cycle.
Never Simple NO! Believing in the one, strong leader is futile. The solution is within democracy or there will be no solution at all.
Public banking could help transition us to a better situation by providing debt free loans and issuing money for productive purposes and returning all profit back to the state hence reducing the need for most taxes
So, what you are in essence saying is it has nothing to do with capitalism, it is the fault of the banks and governments? Of so, you are spot on
How does Fiat money and negative money, in the form of huge national and personal debt fit into this context? Quantitative easing?
It doesn't have to do with quantitative easing. Personal debt is created when people want to spend beyond their means, like taking out a loan to buy a house that is worth much more than what is in your bank account. When people how more money, in the form of debt, to spend, the GDP will rise despite a lack of change in the income of the individual. National debt, fiat currency, and quantitative easing are related but are not relevant the the context in this talk. This guy is only talking about debt and bubbles through consumers not through the government.
Vincent Mainey Due to 0if fact that all money is created as a debt with interest attached, it ultimately causes a flow of money from the bottom to the top. Public banking could help solve this by creating debt free money for productive means
You've been asking the real questions ahead of time sir
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We produce many more cars than are sold every year. There are huge parking lots with thousands of brand new cars parked out there. They cannot sell them at the advertised price, but they cannot auction them off at lower prices because that would depress the price of normal auto sales, and squeeze dealers out of business, so they park them and let them rot.
I get this idea.. but it's not a solid answer in my option.. it just lets the ultra rich set money in different places where it can't be touched. Best solution... make a money exchange. Make all old money worthless in the next 10 year. Only money converted into property, product, making renewable energy, or providing low income people with their needs will translate into wealth. If you don't your bills, or accounts will become useless. Think Pesos. Your thousand dollars is not worth 10. Million only a thousand. If you don't invest in your society for it's betterment. If you don't do it in the next ten years. It will become essentially worthless paper.
What a brilliant idea! Has this been developed further by any other groups? T
India is doing something similar... it's hard but it's trying to get rid of counterfiet money and criminal money in it's system. People have to exchange their old bills for new. But You could essentially do the same thing. Just make people exchange. If they don't claim those assets and don't use it in a positive way they lose it.
You should really get this idea to people who could push forward its implementation. Keep thinking forward and stay positive! T
I thought of this years ago, the problem is it will never be implemented as the bankers run the world and many people want to save over the long term. Thanks..
It's doable... but you have to figure out a way to make the US and China do it. If those two do it the rest of the currencies around the world fall because if those two refuse to accept anything but the new currency the other money becomes useless.
The United Nations is unsustainable..
How about instead of taxing bad behavior ie hoarding capital, we encourage good behavior by doing tax breaks or other incentives for companies that pay a certain percentage of their revenue to employee salaries?
Show me a successful alternative please. Cheers Stuart.
But isn`t the reason why we get these economical bubbles that the centrals bank first lowers the loans so people spend a lot of money and then decides to increase the rent on money being loaned out so that people spend less money and businesses fail causing people to become unable to pay back their debts and thus have to sell their homes to the banks for a much lower fee?
Quite frankly it seems to be working in Norway for instance
this is my jam! this song is straight FIRE 🔥 this song really hits at the deeper meaning and structure of our economy and I think this is why he is one of the best artists of our time. This song has so much contained inside of it you have to listen to it at least five times before you can truly grasp what he's trying to convey. This is definitely going to be a hit for the summer and a song to remember. Great job 👍🏻
vlsiguymn u think you're funny?
I'm sick of all of these free basic income people spouting a complete reorientation of our systems.
Hopefully you are so sick of them that you will ill and be relieved of said suffering
Its so much simpler than what he talks about. Simply put we have capitalism and an economy.
The system of capitalism we have currently is no limits capitalism. That is unlimited individual and corporate wealth accumulation. The type of economy we have is finite.
Its simple math there is not an unlimited amount of money in the economy so allowing unlimited plundering of the wealth in the economy is radically unsustainable and is only still functioning thanks to the massive debts our governments have accumulated on our behalf. In the US tax payers have been lumbered with an annual interest payment of hundreds of billions of dollars per year. It is three times the national corporate tax revenue.
The more you borrow the bigger the interest payment gets. You keep borrowing money and eventually your revenue will no longer service the debt. Let alone pay for infrastructure maintenance welfare, age pension, government wages and costs the military etc.
The governments are only enabling the rich with this strategy it is in no way for the benefit of the population and only really benefits a small number of people who plunder the wealth of the community without regard for the damage they are causing. People who have so much money they don't know what to do with it so they park it in off shore tax havens that is bad for the population and the finite economy they have plundered it from.
Trouble to change
How hard is it to spell is
You tell us, you spelt it twice. The real question in, how hard in it to use punctuation‽
UWYouthOrg silence inheritance like 1989 China. The Venus Project for the youth, free the old
I also think the economy system in not sustainable
A somewhat clumsy communist manifesto based upon the assumption that wealth statistics follows a Gaussian distribution. Even with two people one person may sell harder, or have access to a few more trinkets, decidedly skewing even the smallest dataset.
Wage slavery IS slavery.
Can't believe how uninformed some of the commenters are
I cant even understand this guy´accent for God´s sake.
Most rich people have created their wealth, by taking it away, those people would stop creating wealth and you would end up in a poorer world. You would obtain less inequality because just everybody would be poor. It boggles me how can someone be so educated and at the same time be so wrong.
Most rich people inherit their wealth. They don't pay taxes and they want the workers of the world to be slaves so the mega rich who really control the world can be Kings.
You ignored another big truth, which is everybody, including the poor, don't like to work hard to earn money, instead they just hope they can be the top 1%.
thomas yang Working hard is part of the problem. We should work less and want less. That´s the only way to save our planetary ressources.
I worked hard for 30 years and barely making ends meet.
This is quite possibly the worst explanation of anything I have ever heard, not to mention economics.
Useless speech..