1 00:00:07,174 --> 00:00:08,800 I've always wondered... 2 00:00:08,884 --> 00:00:12,596 ...why we hear every night what the stock market does? 3 00:00:13,180 --> 00:00:15,390 ...70 record quotes so far... 4 00:00:15,474 --> 00:00:16,725 Through the ceiling... 5 00:00:16,808 --> 00:00:18,810 Issue price records. 6 00:00:18,894 --> 00:00:20,646 Investors who benefit... 7 00:00:20,729 --> 00:00:22,356 When the stock market is high... 8 00:00:22,439 --> 00:00:25,108 ...people pretend that things are going well with the economy. 9 00:00:25,692 --> 00:00:30,155 And the stock market is in America high for about 40 years... 10 00:00:30,239 --> 00:00:32,366 When stocks rise, prosperity also increases. 11 00:00:32,449 --> 00:00:34,284 And the economy is healthier. 12 00:00:34,368 --> 00:00:38,163 What the market tells us is that we are on our way to greater prosperity. 13 00:00:38,247 --> 00:00:41,792 A stock market that rises rapidly everyone benefits from that... 14 00:00:41,875 --> 00:00:45,212 The stock market is close three trillion dollars increased in value... 15 00:00:45,295 --> 00:00:46,463 ...since the elections. 16 00:00:47,500 --> 00:00:50,968 But if you look at all the purchased and goods and services sold... 17 00:00:51,510 --> 00:00:54,346 ...the real economy, then that growth has actually decreased. 18 00:00:54,429 --> 00:00:56,980 GDP GROWTH RATE AMERICA 19 00:00:56,181 --> 00:00:58,559 Salaries have been frozen for years... 20 00:00:58,642 --> 00:01:01,353 ...and the average net worth from an American family... 21 00:01:01,436 --> 00:01:04,640 ...has not yet been recovered of the Great Recession. 22 00:01:04,147 --> 00:01:06,984 So what does that stock market measure exactly? 23 00:01:09,236 --> 00:01:10,320 A NETFLIX ORIGINAL DOCUMENTARY SERIES 24 00:01:10,404 --> 00:01:12,447 The barometer of prosperity is the stock market. 25 00:01:12,531 --> 00:01:14,157 The Dow has risen... 26 00:01:14,241 --> 00:01:16,118 The NASDAQ finally reaches 5,000. 27 00:01:16,201 --> 00:01:17,828 Investors are drooling... 28 00:01:17,911 --> 00:01:19,288 Dividend! 29 00:01:19,371 --> 00:01:21,164 A new kind of gold rush... 30 00:01:21,999 --> 00:01:24,835 Everyone loves the global keeping an eye on economic growth... 31 00:01:24,918 --> 00:01:26,461 This is historic territory... 32 00:01:26,545 --> 00:01:27,713 Buy back shares... 33 00:01:27,796 --> 00:01:30,757 It's a fundamental one psychopathic philosophy. 34 00:01:31,842 --> 00:01:37,389 The Stock Market 35 00:01:40,309 --> 00:01:43,812 To understand what a stock market measure, it helps to think... 36 00:01:43,895 --> 00:01:46,481 ...to a simple company, a lemonade stand. 37 00:01:46,565 --> 00:01:50,235 Jill is doing fantastic. -But I think bigger. 38 00:01:50,652 --> 00:01:53,780 I wanted a loan, but the bank thought it was too risky. 39 00:01:54,156 --> 00:01:56,199 Big investors didn't buy anything. 40 00:01:56,992 --> 00:01:58,285 Jill has another option. 41 00:01:58,368 --> 00:01:59,411 LEMONADE STOOD SHARES 42 00:01:59,494 --> 00:02:02,390 She can go to the market, and anyone who wants it... 43 00:02:02,122 --> 00:02:03,999 ...an opportunity to invest. 44 00:02:04,820 --> 00:02:07,711 First of all there is the IPO, the primary emission. 45 00:02:07,794 --> 00:02:11,480 Investors pay an amount, say a dollar, for a piece... 46 00:02:11,131 --> 00:02:12,674 ...a share in Jill's company. 47 00:02:13,300 --> 00:02:14,843 Jill sells some shares. 48 00:02:15,636 --> 00:02:17,846 And my lemonade empire is growing. 49 00:02:17,929 --> 00:02:21,808 Jill can use this money to open new stalls... 50 00:02:21,892 --> 00:02:24,102 ...which means more profit. 51 00:02:24,186 --> 00:02:27,356 Jill could also use some of it to develop new products. 52 00:02:27,439 --> 00:02:30,734 She can also get some of that money return to investors. 53 00:02:30,817 --> 00:02:32,277 That's called dividend. 54 00:02:32,361 --> 00:02:36,281 She doesn't have to do that but it does help to get people enthusiastic... 55 00:02:36,365 --> 00:02:39,660 ...to find out about her company and buy shares. 56 00:02:39,743 --> 00:02:43,622 Like Sam, who was sick on the day of issue, but he thinks... 57 00:02:43,705 --> 00:02:46,500 Jill the smartest girl from all over the world... 58 00:02:46,583 --> 00:02:48,835 ...and I know that this lemonade stand thing... 59 00:02:48,919 --> 00:02:50,295 ...is going to be huge. 60 00:02:50,379 --> 00:02:54,675 So he offers to buy shares from one of the original investors... 61 00:02:54,758 --> 00:02:56,510 ...for double the amount. 62 00:02:56,593 --> 00:02:58,470 He thinks... -If Jill keeps this up... 63 00:02:58,637 --> 00:03:01,181 ...can I get those shares even sell for more later. 64 00:03:01,264 --> 00:03:05,686 That's the stock market, people buy and sell small pieces of companies. 65 00:03:05,769 --> 00:03:09,189 Based on how they estimate the future value. 66 00:03:09,731 --> 00:03:10,982 Only in real life... 67 00:03:11,660 --> 00:03:14,361 ...it happens thousands of times per second, worldwide. 68 00:03:14,945 --> 00:03:18,115 There are stock markets everywhere, but the New York Stock Exchange... 69 00:03:18,198 --> 00:03:21,743 ...is the largest of them all. It existed from 1792... 70 00:03:21,827 --> 00:03:25,747 ...then 24 stockbrokers put on their best clothes... 71 00:03:25,831 --> 00:03:29,334 ...and gathered under a tree on Wall Street in New York City. 72 00:03:29,418 --> 00:03:32,671 Nowadays that's where the big one traditional companies like IBM... 73 00:03:32,754 --> 00:03:37,800 ...and GE are traded. The NASDAQ is the younger hipster brother. 74 00:03:37,134 --> 00:03:40,679 Born in 1971, and has no physical location... 75 00:03:40,762 --> 00:03:42,764 ...all trading is electronic. 76 00:03:42,848 --> 00:03:46,101 There you will find the Tech companies, such as Apple and Facebook. 77 00:03:46,643 --> 00:03:49,771 So, if you want to know in America how the stock market is doing... 78 00:03:49,855 --> 00:03:52,607 ...then you want to know how both exchanges are doing. 79 00:03:52,691 --> 00:03:54,693 And that happens with indexes. 80 00:03:54,943 --> 00:03:59,781 They capture a lot of stock prices together in one clear number. 81 00:03:59,865 --> 00:04:04,494 The SandP 500 holds the 500 largest companies at both fairs. 82 00:04:04,578 --> 00:04:08,707 While the DOW is a lot more exclusive, it only follows the 30 companies... 83 00:04:08,790 --> 00:04:13,253 ...die het als meest belangrijk ziet. In 2015 werd ATandT eruit gezet... 84 00:04:13,336 --> 00:04:15,922 ...en vervangen door Apple. De DOW en de SandP zijn... 85 00:04:16,600 --> 00:04:21,553 ...Amerikaanse indexen, maar andere landen hebben hun eigen indexen voor hun beurzen. 86 00:04:21,636 --> 00:04:22,971 De Duitse aandelenindex, DAX... 87 00:04:23,540 --> 00:04:25,980 Londens FTSE 100-index... 88 00:04:25,182 --> 00:04:26,558 The Nikkei index... 89 00:04:26,641 --> 00:04:28,185 The Shanghai index... 90 00:04:28,268 --> 00:04:31,938 Vandaag de dag, worden veel grote bedrijven publiek verhandeld... 91 00:04:32,220 --> 00:04:33,940 ...maar dat was niet altijd zo. 92 00:04:34,316 --> 00:04:38,862 Eén man, en meestal een man, was usually the boss. 93 00:04:38,945 --> 00:04:42,115 Grote bedrijven uit de 20e eeuw, most... 94 00:04:42,199 --> 00:04:43,575 PROFESSOR OF BUSINESS LAW 95 00:04:43,658 --> 00:04:46,360 ...had one shareholder, like Andrew Carnegie... 96 00:04:46,119 --> 00:04:48,121 STEEL 97 00:04:48,246 --> 00:04:49,372 Vanderbilt... 98 00:04:49,456 --> 00:04:51,666 RAILWAYS 99 00:04:52,375 --> 00:04:53,502 Rockefeller... 100 00:04:53,585 --> 00:04:56,460 OIL 101 00:04:56,129 --> 00:04:59,633 They all held the reins tight in hands. 102 00:04:59,716 --> 00:05:04,540 This changed in the early 20th century. 103 00:05:04,137 --> 00:05:08,225 We see the rise of companies like General Motors... 104 00:05:08,308 --> 00:05:10,685 ...and General Electric and RCA. 105 00:05:10,769 --> 00:05:13,188 Companies that discover whatever Jill discovered... 106 00:05:13,271 --> 00:05:17,984 ...if you allow people to share you can grow much faster. 107 00:05:18,680 --> 00:05:20,153 Shareholders want to make money. 108 00:05:20,237 --> 00:05:22,864 So as the director makes a bad decision... 109 00:05:22,948 --> 00:05:26,326 ...they are going to sell their shares and the price will fall. 110 00:05:26,660 --> 00:05:29,871 The opposite is also true, good prospects... 111 00:05:29,955 --> 00:05:33,166 ...encourages people to invest in risky new ideas. 112 00:05:33,250 --> 00:05:35,877 That is the idea behind the fair, a driving force for 'good'. 113 00:05:35,961 --> 00:05:38,255 It motivates companies to good decisions... 114 00:05:38,338 --> 00:05:41,132 ...so there is more money for the shareholders... 115 00:05:41,216 --> 00:05:45,262 ...and more money for growth and jobs, and that's good for everyone. 116 00:05:45,345 --> 00:05:50,642 In the middle of the last century, this became apparent the American public corporation... 117 00:05:50,892 --> 00:05:55,146 ...one of the most effective, strong... 118 00:05:55,230 --> 00:05:58,149 ...and profitable organizations was in the world. 119 00:05:58,233 --> 00:06:01,945 There are growth opportunities, and The Telephone Company... 120 00:06:02,280 --> 00:06:04,300 ...makes grateful use of that. 121 00:06:04,114 --> 00:06:07,617 In the years after the Second World War, helped the stock market survive its heyday... 122 00:06:07,701 --> 00:06:09,786 ...of creating shared prosperity. 123 00:06:09,870 --> 00:06:12,706 A new era dawns, the system more democratic... 124 00:06:12,789 --> 00:06:15,458 ...the flow of money for financing increases. 125 00:06:15,542 --> 00:06:19,880 The company had to be a means... 126 00:06:19,963 --> 00:06:24,342 ...for investment opportunities, not just for the wealthy... 127 00:06:24,426 --> 00:06:29,389 ...but also for the average American. It generated great returns. 128 00:06:29,472 --> 00:06:31,160 Shouldn't we invest? 129 00:06:31,990 --> 00:06:34,600 Millions of permanent, well-paid jobs. 130 00:06:34,144 --> 00:06:38,607 Innovative products that traveled all over the world. 131 00:06:38,690 --> 00:06:43,612 Managers and directors saw themselves as stewards or administrators... 132 00:06:43,820 --> 00:06:47,365 ...of major public institutions, for the purpose of serving... 133 00:06:47,449 --> 00:06:50,869 ...from not only shareholders, but also bondholders... 134 00:06:50,952 --> 00:06:55,165 ...suppliers, employees and the community. 135 00:06:55,332 --> 00:06:59,461 Buick has created an environment  for people from all backgrounds. 136 00:06:59,544 --> 00:07:02,505 And the general manager, Ivan Wiles, comes to take a look. 137 00:07:02,589 --> 00:07:03,715 DuPont... 138 00:07:03,798 --> 00:07:07,177 Modern chemistry and modern industry join forces... 139 00:07:07,260 --> 00:07:09,930 ...to serve our modern America. 140 00:07:10,130 --> 00:07:13,975 These public companies have helped to build the middle class... 141 00:07:14,590 --> 00:07:16,227 ...and those who played it well... 142 00:07:16,394 --> 00:07:19,640 ...could make a fortune with stock trading. 143 00:07:19,230 --> 00:07:20,650 Like him. 144 00:07:20,148 --> 00:07:22,651 I worked on the railway... 145 00:07:22,734 --> 00:07:26,710 Folk music is his hobby, he is the wealthy investor... 146 00:07:26,154 --> 00:07:27,197 Warren Buffett. 147 00:07:27,280 --> 00:07:29,282 The biggest Wall Street tycoon. 148 00:07:29,366 --> 00:07:30,533 Most famous investor... 149 00:07:30,617 --> 00:07:33,360 Investor Warren Buffett is worth 84 billion. 150 00:07:33,119 --> 00:07:36,539 Buffett is famous due to his special investment style. 151 00:07:36,623 --> 00:07:37,874 ECONOMIST, NOBEL PRIZE WINNER 152 00:07:37,958 --> 00:07:40,335 Value investment, careful analysis... 153 00:07:40,418 --> 00:07:43,713 ...looking at both the balance sheet as the company. 154 00:07:43,797 --> 00:07:47,550 But if you don't have time for that, Here's a tip from the man himself. 155 00:07:47,759 --> 00:07:51,972 Buy a SandP 500 low-cost index fund. 156 00:07:52,550 --> 00:07:54,432 An index fund puts a small portion in of your money... 157 00:07:54,516 --> 00:07:56,226 ...in every company within the index. 158 00:07:56,309 --> 00:07:59,604 You hang it as if it were your wagon on the stock market train. 159 00:07:59,729 --> 00:08:03,274 Another option is professional give investors your money... 160 00:08:03,358 --> 00:08:06,690 ...who, for a fee, trying to beat the stock market. 161 00:08:06,486 --> 00:08:10,730 Buffet once made a bet with a hedge fund, which in 10 years... 162 00:08:10,156 --> 00:08:12,242 ...an index fund would yield more... 163 00:08:12,367 --> 00:08:17,831 ...and he won. Choosing stocks is difficult but there is a popular strategy. 164 00:08:17,914 --> 00:08:19,916 This man, John Maynard Keynes. 165 00:08:20,000 --> 00:08:22,293 You can  recognize him by his great moustache. 166 00:08:22,377 --> 00:08:25,213 He figured it out Keynes was a Nobel Prize winner... 167 00:08:25,296 --> 00:08:29,500 ...and one of the most influential economists of the 20th century... 168 00:08:29,134 --> 00:08:31,720 ...he noticed that newspapers were doing something. 169 00:08:31,803 --> 00:08:33,805 They filled an entire page... 170 00:08:34,639 --> 00:08:39,144 ...with photos of handsome faces and you had to... 171 00:08:39,227 --> 00:08:43,314 ...six most beautiful molars, Rank by most beautiful... 172 00:08:43,398 --> 00:08:45,400 ...and send it to the newspaper. 173 00:08:45,984 --> 00:08:49,571 The newspaper then made an overview based on the number of votes... 174 00:08:50,710 --> 00:08:53,700 ...and the winner was the one who did it best suited the audience's tastes. 175 00:08:53,783 --> 00:08:58,380 Let's think about that. Do I really choose which one I... 176 00:08:58,121 --> 00:09:01,916 ...find the most beautiful one? No, I have to choose what others see... 177 00:09:02,000 --> 00:09:03,376 ...as the most beautiful. 178 00:09:03,460 --> 00:09:05,545 And that is also what happens on the stock market. 179 00:09:05,628 --> 00:09:09,591 It's not the real value of companies that determine the price. 180 00:09:09,924 --> 00:09:13,887 It's the best story what people believe about this company. 181 00:09:14,304 --> 00:09:17,980 Sometimes the stories supported by facts. 182 00:09:17,348 --> 00:09:20,435 Chipotle stock is more than one third plummeted. 183 00:09:20,518 --> 00:09:22,896 After the news of several outbreaks... 184 00:09:22,979 --> 00:09:26,149 ...including E.coli, Salmonella and Norovirus, linked to this chain. 185 00:09:26,232 --> 00:09:30,695 The cheating scandal hurts the shares of Volkswagen in free fall. 186 00:09:30,779 --> 00:09:33,406 But sometimes these stories are hype. 187 00:09:33,490 --> 00:09:37,770 Internet companies are the most lucrative investments... 188 00:09:37,160 --> 00:09:38,286 ...in generations. 189 00:09:38,369 --> 00:09:41,706 They drive value to otherworldly heights. Lycos... 190 00:09:41,790 --> 00:09:43,249 ...Excite, Yahoo... 191 00:09:43,333 --> 00:09:46,860 Internet stocks keep rising. 192 00:09:46,169 --> 00:09:50,757 The story in the 90s was that internet companies would come to dominate. 193 00:09:50,840 --> 00:09:53,301 These companies should not make a profit. 194 00:09:53,384 --> 00:09:55,386 A good story, and partly true. 195 00:09:55,470 --> 00:09:58,181 We have companies like Amazon, Google... 196 00:09:58,264 --> 00:10:02,600 The problem is, no one has a way had to determine the value... 197 00:10:02,143 --> 00:10:03,686 ...how high should the market be? 198 00:10:03,770 --> 00:10:05,313 Is it a boom without end? 199 00:10:05,396 --> 00:10:07,607 Has the economy changed forever? 200 00:10:07,690 --> 00:10:10,151 You know something is wrong if everyone... 201 00:10:10,235 --> 00:10:14,720 ...talks about this. It's a bubble, a snowball... 202 00:10:14,155 --> 00:10:17,659 ...it's getting bigger and bigger. But it can't go on forever. 203 00:10:17,742 --> 00:10:21,246 The great Dot Com days is nearing its end in many places. 204 00:10:21,329 --> 00:10:23,706 Many Dot Com turn into Dot Bom. 205 00:10:23,790 --> 00:10:26,167 ...300,000 jobs lost. 206 00:10:26,251 --> 00:10:28,628 Described as breathtaking. 207 00:10:28,711 --> 00:10:31,464 The value dropped so quickly, never seen before... 208 00:10:31,548 --> 00:10:34,259 ...traders and investors in shock. 209 00:10:34,342 --> 00:10:36,261 When stock market bubbles burst... 210 00:10:36,344 --> 00:10:39,889 ...this not only affects investors, but the entire economy. 211 00:10:39,973 --> 00:10:42,934 Millions could lose their jobs, companies are going bankrupt... 212 00:10:43,170 --> 00:10:44,853 ...and pensions are falling. 213 00:10:44,936 --> 00:10:48,731 But if the stock markets are flourishing and investors deserve... 214 00:10:48,815 --> 00:10:50,316 ...that can't be good either. 215 00:10:50,400 --> 00:10:53,695 We're heading off at the most acute energy crisis... 216 00:10:53,778 --> 00:10:55,363 ...since the Second World War. 217 00:10:55,446 --> 00:11:00,201 There were already early in the morning huge queues for petrol for the day. 218 00:11:00,285 --> 00:11:02,370 Are you angry about it? how prices have increased? 219 00:11:02,453 --> 00:11:04,998 I am very upset and disgusted. 220 00:11:05,810 --> 00:11:08,877 There was general concern that something had gone wrong... 221 00:11:08,960 --> 00:11:10,545 ...in the American economy. 222 00:11:10,628 --> 00:11:16,920 And in the end everyone pointed to the way big companies... 223 00:11:16,176 --> 00:11:17,802 ...were run. 224 00:11:17,886 --> 00:11:20,430 Meet the one who shouted this loudest, Milton Friedman. 225 00:11:20,513 --> 00:11:23,975 A renowned economist, often seen on popular talk shows. 226 00:11:24,580 --> 00:11:25,852 To help explain this philosophy. 227 00:11:25,935 --> 00:11:29,147 Have you ever doubted capitalism? 228 00:11:29,647 --> 00:11:32,250 And whether greed is a good basis? 229 00:11:32,108 --> 00:11:35,653 Do you know a company? that is not based on greed? 230 00:11:35,737 --> 00:11:37,989 Do you remember this one? Friedman was not a fan. 231 00:11:38,720 --> 00:11:41,534 He thought there should be only one part, shareholders. 232 00:11:41,618 --> 00:11:45,496 He published in 1970 a successful article. 233 00:11:45,580 --> 00:11:48,583 The famous article in the New York Times... 234 00:11:49,167 --> 00:11:54,631 ...in which he indicated that because companies were owned by shareholders... 235 00:11:54,714 --> 00:11:58,509 ...was their only obligation to make a profit. 236 00:11:58,593 --> 00:12:02,764 Gordon Gekko's character in the film Wall Street personifies that philosophy. 237 00:12:02,847 --> 00:12:06,184 You own the company, yes you, the shareholders... 238 00:12:06,267 --> 00:12:10,647 ...and you get an ear stitched up by these, these bureaucrats. 239 00:12:10,730 --> 00:12:15,276 Greed, for lack of a better word, is good. 240 00:12:16,270 --> 00:12:18,279 And companies took his advice. 241 00:12:18,363 --> 00:12:23,952 The salaries of senior officials was linked to stock prices. 242 00:12:24,350 --> 00:12:27,747 Well, like 80% of the salary from the director... 243 00:12:27,830 --> 00:12:30,833 ...is determined by the share price... 244 00:12:30,917 --> 00:12:35,588 ...then he or she does everything he or she can to increase this. 245 00:12:36,256 --> 00:12:42,971 Even if the consequences are harmful for staff, customers, society... 246 00:12:43,540 --> 00:12:46,599 ...the environment, or even the company itself in the long term. 247 00:12:46,683 --> 00:12:50,186 Directors channeled more money to things that will happen in the short term... 248 00:12:50,270 --> 00:12:54,482 ...the share price would increase driving, such as saving costs or own... 249 00:12:54,565 --> 00:12:57,819 ...buying shares for the sake of supply to reduce. 250 00:12:57,902 --> 00:13:03,449 Between 2007 and 2016, was this how SandP 500 companies... 251 00:13:03,533 --> 00:13:05,785 ...more than half of their income spent. 252 00:13:05,868 --> 00:13:09,247 And 39% went as dividends to shareholders. 253 00:13:09,330 --> 00:13:12,959 So there was little left for a wage increase or expansion... 254 00:13:13,420 --> 00:13:15,461 ...develop products, things that are good... 255 00:13:15,545 --> 00:13:17,630 ...in the long term for an economy. 256 00:13:18,339 --> 00:13:20,508 If you have a long term vision, and in 100 years... 257 00:13:20,591 --> 00:13:21,718 FORMER DIRECTOR, WAUSAU PAPER 258 00:13:21,801 --> 00:13:24,512 ...still want to be a company... 259 00:13:24,595 --> 00:13:27,140 ...and wants to exist. Then the choices you make are... 260 00:13:27,223 --> 00:13:32,103 ...in investing, people or capital differently... 261 00:13:32,186 --> 00:13:36,232 ...then when you wants to make a profit within 24 months. 262 00:13:36,316 --> 00:13:39,652 Did in 2012 the Wausau paper mill investments... 263 00:13:39,736 --> 00:13:43,406 ...to pass of printing and writing paper... 264 00:13:43,489 --> 00:13:44,949 ...to tissues. 265 00:13:45,330 --> 00:13:48,453 But then a hedge fund bought some of the shares and insisted... 266 00:13:48,536 --> 00:13:49,996 ...on cost reduction. 267 00:13:50,790 --> 00:13:52,123 Their argument was, we don't have to do that. 268 00:13:52,206 --> 00:13:56,544 We would rather see a dividend increase. We disagreed. 269 00:13:56,627 --> 00:13:57,712 FORMER ENGINEER 270 00:13:57,795 --> 00:13:59,213 We wanted to give up salary. 271 00:13:59,297 --> 00:14:01,700 To keep our jobs. 272 00:14:01,900 --> 00:14:05,428 Wausau Papier announces the plan to close its factory in Brokaw... 273 00:14:05,511 --> 00:14:07,930 About 450 people without work. 274 00:14:08,140 --> 00:14:11,351 The news is disastrous, not just for the employees... 275 00:14:11,434 --> 00:14:14,854 ...but for the whole community, where the factory once started. 276 00:14:14,937 --> 00:14:19,484 On December 7, I'll never forget, the day of Pearl Harbor... 277 00:14:19,567 --> 00:14:22,700 ...the day I buried my father... 278 00:14:22,487 --> 00:14:24,238 ...and the day I lost my job. 279 00:14:24,322 --> 00:14:27,992 The next day I came to work, it was a madhouse. 280 00:14:28,117 --> 00:14:30,620 People cried. 281 00:14:30,703 --> 00:14:31,788 Why? 282 00:14:35,333 --> 00:14:36,250 It was a shock. 283 00:14:36,334 --> 00:14:41,422 My concern is that we are left alone looking at the short term... 284 00:14:41,506 --> 00:14:43,257 ...to shareholders... 285 00:14:43,341 --> 00:14:47,970 ...versus long-term visions including responsibilities. 286 00:14:48,471 --> 00:14:53,226 This trend has been around for a while and just becomes... 287 00:14:53,309 --> 00:14:55,103 ...stronger and more important. 288 00:14:55,186 --> 00:15:00,733 It threatens the assets of our companies to strive... 289 00:15:00,817 --> 00:15:04,654 ...to projects that are good for the long term... 290 00:15:04,737 --> 00:15:05,863 ...and economic growth. 291 00:15:06,572 --> 00:15:10,760 dismissed employees, factories that close, low wages. 292 00:15:10,451 --> 00:15:13,162 All bad for the economy as a whole... 293 00:15:13,246 --> 00:15:16,666 ...but great for profit in the short term... 294 00:15:16,749 --> 00:15:19,377 ...and that's where it is the stock market turns around. 295 00:15:19,460 --> 00:15:21,629 The stock market started fantastic... 296 00:15:21,712 --> 00:15:22,922 Another record day... 297 00:15:23,500 --> 00:15:24,715 A day for the books... 298 00:15:24,799 --> 00:15:27,844 The American economy is surging ahead, just like the bulls on Wall Street. 299 00:15:27,927 --> 00:15:29,429 An important day on Wall Street... 300 00:15:29,512 --> 00:15:32,557 The SandP 500 higher than ever. 301 00:15:32,640 --> 00:15:36,811 And the payouts to directors rose along. 302 00:15:38,146 --> 00:15:42,191 In 1973 the average director earned about 22 times more... 303 00:15:42,275 --> 00:15:48,300 ...than the average worker. In 2016, this was 271 times as much. 304 00:15:48,448 --> 00:15:52,994 And the more the stock market grows, the fewer Americans benefit from this. 305 00:15:53,327 --> 00:15:57,123 The number of Americans with stocks is at its lowest point... 306 00:15:57,206 --> 00:16:00,126 ...in 20 years, the middle class no longer participates. 307 00:16:00,460 --> 00:16:04,589 So it's no surprise that rising stock prices... 308 00:16:04,839 --> 00:16:08,342 ...has increased inequality. But this is not necessary. 309 00:16:09,510 --> 00:16:11,971 Stock markets give people an opportunity to decide... 310 00:16:12,540 --> 00:16:16,434 ...which companies get a chance on success, and what ideas. 311 00:16:16,517 --> 00:16:19,562 And something happens when you give people the chance to play. 312 00:16:19,645 --> 00:16:23,191 If you look at successful countries, they all have stock markets. 313 00:16:23,274 --> 00:16:25,610 And countries that wanted to stop... 314 00:16:25,693 --> 00:16:28,362 ...will come back to this and reset them. 315 00:16:28,446 --> 00:16:31,908 Shareholders can control the behavior of influencing companies... 316 00:16:31,991 --> 00:16:33,576 ...whose interests they represent. 317 00:16:33,659 --> 00:16:37,413 Most of us think to our long-term future. 318 00:16:37,497 --> 00:16:42,126 We care about our neighbors, our children and grandchildren. 319 00:16:42,210 --> 00:16:47,548 We have norms and values, and want companies to make a profit... 320 00:16:47,632 --> 00:16:50,920 ...with things that are good for the world... 321 00:16:50,176 --> 00:16:53,721 ...and not by harming people and destroy it. 322 00:16:53,846 --> 00:16:56,724 That's what most stakeholders really want. 323 00:16:59,477 --> 00:17:03,981 Subtitled by: Netflix Netherlands