One Dollar. One Vote. [Emmanuel Saez]

The video discusses the differences between income and wealth, highlighting how wealth is more unequally distributed. Emanuel Saez, an economics professor, explains the role of taxes in addressing inequality and funding public goods. The US tax system's progressivity has declined since the 1980s, with arguments for reducing taxes on the rich focusing on incentives for innovation. However, this has led to increased wealth concentration and political influence. Historically, progressive taxation has been key in reducing inequality. Despite globalization, taxing the rich remains feasible.

What is the primary difference between income and wealth as discussed in the video?

• Income is more unequally distributed than wealth.

• Income is a stock of assets, while wealth is a flow of money.

• Wealth is earned through salaries, while income comes from assets.

• Income is earned regularly, while wealth is accumulated over time.

What was a significant change in the US tax system since the 1980s?

• The tax rates for the poor were eliminated.

• The tax rates for the middle class increased significantly.

• The tax system became more progressive.

• There was an erosion of tax progressivity.

What is one argument in favor of reducing tax progressivity?

• It encourages the rich to invest more in public services.

• It provides more incentives for the wealthy to innovate.

• It ensures a fair distribution of wealth.

• It reduces the overall tax burden on the poor.

Why might societies want to reduce wealth concentration?

• To increase the power of the wealthy in politics.

• To ensure that wealth is distributed based on merit.

• To allow the wealthy to have more votes in elections.

• To prevent economic power from influencing political systems.

What does the video suggest about taxing the rich in a globalized world?

• The rich will always find ways to avoid taxes.

• With careful planning, it is possible to tax the rich effectively.

• Taxing the rich will lead to them moving to other countries.

• It is impossible to tax the rich due to globalization.