Why is inequality rising? | CNBC Explains

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  • Published on:  Friday, October 12, 2018
  • The gap between the rich and the poor is rising in nearly every region of the world. CNBC’s Xin En Lee explores why inequality is growing.-----Subscribe to us on YouTube: http://cnb.cx/2wuoARMSubscribe to CNBC Life on YouTube: http://cnb.cx/2wAkfMvLike our Facebook page:https://www.facebook.com/cnbcinternat...Follow us on Instagram:https://www.instagram.com/cnbcinterna...Follow us on Twitter:https://twitter.com/CNBCi
  • Source: https://youtu.be/FXmsj4dh-RI
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Comment

  • Rakesh Santhosh

    Rakesh Santhosh

     10 months ago +200

    how could democracy work when the majority of the people are stupid

  • Vuthy Va

    Vuthy Va

     10 months ago +32

    a comprehensive video on inequality

  • C. Lincoln

    C. Lincoln

     10 months ago +77

    Education is the equaliser. But the rich do NOT want an educate, well informed and financially literate people, so they bribe or "lobby" politicians to ensure the quality of the education is only so good. We live in a capitalist nation, money is the life blood of society, it runs everything and is used daily by almost everyone ... yet we're never given any lessons in school on how to mange debt, budget, invest, bonds & stocks and other useful things related to capitalism that would ensure one thrives or at the very least isn't struggling in a capitalist nation.

  • Kyle of Florida

    Kyle of Florida

     6 months ago +7

    1:52 "So what's causing inequality? An obvious contributor is Russia and China's move away from communism."

  • Far J

    Far J

     8 months ago +7

    Xin En Lee has a pretty smile and looks Malay and Indonesian I think. Hope to see her personally.

  • kavika lowgun

    kavika lowgun

     6 months ago +4

    Self entitled bs

  • lothean

    lothean

     3 months ago +4

    Watching this....it makes sense why the United states wants to cut funds for education. If your slave population can not think for themselves..they are easier to control

  • Franco R

    Franco R

     5 months ago +2

    Sigh...If money only grew on trees....Wait! We do have the technology. Monsanto should genetically engineer a tree that makes money and sell it. Then we all pay Monsanto back with the money from the tree, a genius solution.

  • karthikeyan M.V

    karthikeyan M.V

     2 months ago +1

    Tax the rich not middle class

  • Albi

    Albi

     10 months ago +2

    Imf-Mission impossible force

  • Lou Mio

    Lou Mio

     3 months ago

    Hah!! She said b`o'ogie man.

  • Kevin Wijaya

    Kevin Wijaya

     10 months ago +4

    Thanos will help you to make it more equal

  • The Ultimate Reductionist

    The Ultimate Reductionist

     6 months ago +1

    More conservatives, more politicians pandering to politically correct conservatives = more wealth & political power inequality.

  • Syndicat K

    Syndicat K

     5 months ago

    I really like to see a video on middle eastern’s economy in general and why their economies have been stuck for years and ni real growth

  • Amed Sayed

    Amed Sayed

     2 months ago

    Bla bla bla. One simple answer, FED created this rigged game and Bernanke is one of the biggest criminal.
    End the FED

  • Akash Kaintura

    Akash Kaintura

     10 months ago +1

    democracy & communism has some problem with implementation of policies

  • China Expat

    China Expat

     10 months ago +5

    Im hungry now

  • lothean

    lothean

     3 months ago

    Sad, there will always be the poor amongst us.

  • fidgdet

    fidgdet

     4 months ago +2

    Government restrictions on trade, government corporations founded to exercise monopolies, private firms receiving subsidies, and government restrictions on private businesses. The effect of all of these policies has always been to increase the wealth and privilege of some groups at the expense of others. In Britain, Richard Cobden's Anti-Corn-Law League was one of the most successful free-trade movements in history. Cobden explicitly pointed out how government policy, through tariffs, drove up food prices in order to benefit wealthy land owners at the expense of workers. Needless to say, this was a cause of income inequality.
    These sorts of regulations, of course, persist today. Any law or regulation that limits competition, limits trade, or subsidizes a group or industry naturally increases inequality and benefits some more than others. More often than not, these laws are written and enforced in ways that favor the politically powerful.
    In the wake of the 2008 financial crisis, for example, federal banking regulation has likely been responsible for a decline in small community bankswhile huge banks prosper and consolidate market share.
    With monetary policy, the effects often appear in a more subtle fashion. Nevertheless, inflating the money supply favors some groups — usually wealthy ones — over others. This is due to the fact that newly created money — whether created by central banks or private banks — does not enter the economy evenly. As recent empirical evidence has shown, in recent years central-bank policy in the United States has resulted in an economy where the groups that benefit most from ultra-low interest rates and loose monetary policy have tended to be well-capitalized large firms and the financial sector. Meanwhile, small businesses, the non-financial sector, and riskier start-ups have lost out. At the same time, those firms and institutions that receive the money first are able to spend that money before prices adjust to reflect the inflated money supply. Other people and institutions aren't so lucky.
    And then there is the role monetary policy plays in the boom-bust cycle, and its resulting unemployment, malinvestment, and dislocations. As the Fed's own research shows, declines in wealth and income growth have been larger for some groups than for others as these policies have been put in place. This is then made worse when the "solutions" for economic busts include bailouts and the "too-big-to-fail" doctrines. The benefits of these, naturally, tend to accrue to the largest, most politically well-connected firms.

  • victor nderu

    victor nderu

     10 months ago +45

    I am beginning to like this girls videos more and more.