Debunking Robert Reich’s “Inequality For All”

smartknowledgeu's picture

Recently, I watched Robert Reich’s “Inequality For All” documentary, which attributed the very serious problem of growing wealth inequality in the Americas, Africa, the EU and Asia to every single factor except the primary one – Central Bankers and fractional reserve banking.  If you watch this documentary without a critical eye, the reasons given by former US Labor Secretary Robert Reich for growing wealth inequality in America seem reasonable and well thought out on the surface.  However, once you start peeling back layers to his arguments, one will discover that Reich attributes causation of wealth inequality to correlated factors when there is often  little causation or sometimes no causation at all.


Below is my one-hour video debunking all the critical points Reich raises in “Inequality for All.”  Yes, this video is quite long. However, the length was necessary for me to properly critique the reasons given in this documentary behind growing global wealth inequality.


Please click the above photo and then click the text “Watch
This Video on YouTube” to play the video


P.S. Sorry about the frame rate in the above video as we didn't realize until the end of the video that the low lighting conditions would cause low frame rates.


About the author: JS Kim is the Managing Director of SmartKnowledgeU,  a fiercely independent research and consulting firm that focuses on intelligent ways to preserve wealth during these global currency wars.

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Radical Marijuana's picture

It is abstractly ASTONISHING how mainstream moron economists are able to deliberately ignore the most important factor, which is the SOURCE of the public "money" supply. I believe that one can understand these issues better, but paradoxically, in ways that result in there being no reasonable hope for any improvements within the established systems, since the more one learns, the worse it gets.

hedgiex's picture

YES. When free markets are under cpatives by Banksters that raid the granaries. When you eschew your responsibilities as the custodian of the global reserve currency, you cannot expect your creditors not to go for self defenses.

Mainstream economist have no skins in the game and are protecting their self interest thru lies OR just delusional to believe that their econ models still work.


hedgiex's picture

YES. When free markets are under cpatives by Banksters that raid the granaries. When you eschew your responsibilities as the custodian of the global reserve currency, you cannot expect your creditors not to go for self defenses.

Mainstream economist have no skins in the game and are protecting their self interest thru lies OR just delusional to believe that their econ models still work.


Duc888's picture



Gotta love the irony of a Sect of Labor who's only job was a college DJ.



Goooooooooo  'Murica!

lasvegaspersona's picture is the single most dangerous enemy of wealth ever.

The poor are kept poor by inflation of the money supply. The rich must deal with, as Fofoa has called us, the hungry collective. We eye each wallet and if we see one that seems fatter than ours we ask the government to lighten that one and make ours fuller. That is after all what government is for right?

Keeping wealth, great and even not so great, is one of the challenges that any successful person must learn to deal with. Coming changes to the monetary system will help both rich and poor....savers anyway.

Dr. G's picture

Please, Please, PLEASE! Get a script writer/editor.  You take 60 min to make 15 minutes worth of points.  I volunteer to help.

kchrisc's picture

Today's "Inequality": A word and epithet designed to get the sheeple paying attention to what others have instead of who is robbing them-- the criminals of government and their bankster masters.

Tomorrow's "Inequality": Pols, crats, and banksters will go to the guillotine while the people will not.

The Reich's picture

There's only  one "The Reich"!!!

novictim's picture

I agree that Reich is a SOB.  His disastrous trade deals from the Clinton administration (NAFTA) were the final nails in the coffin of the USA.

And both he and Clinton are sitll pushing bringing in MOAR immigrants into the USA even in the face of unemplyment rates twice above normal.  (normal healthy unemployment rate = 3.0%)

But can't you make your critique of Reich available in print?

Please! Spare us the Video and just bullet point your arguments.  Then we can expand this by then going to the video.  Please?

besnook's picture

this entire argument can be boiled down to inflation. there is some inflation in the needs of the little people(the ultimate patronization of the people by the .1%ers) but there is significant inflation in the stuff the .1%ers buy. fortunately for them inflation shows up in assets along with nieman marcus underwear.

novictim's picture


Yes, when vast amounts of wealth are transferred to the ultra rich, as has happened over the past 20 years, then those folks pump it into real estate, stocks, and other investments including GOLD.

Basically, the wealthy elite have more money than they know what to productively do with they gamble.

Meanwhile, the average middle class household, who's members can now be counted on one's hand, are broke and locked out of home ownership.  Pay for their kids are a pittance today.  Their situation looks like DEFLATION.  Every where from burger joints to the local hardware store have to cut costs and prices in order to sell goods on an ever narrower margin.

Yep.  Deflation for the poor and middleclass.  Inflation for the top 1%.

sgt_doom's picture

Impressive, novictim, the manner in which you robotically -- and sheeple like -- repeat what you have heard:

Basically, the wealthy elite have more money than they know what to productively do with they gamble.

Perhaps you would go back and read up on the Abacus CDO, the Timberwolf CDO, the Point Pleasant CDO, Magnetar Capital, the monolines guys, the rating crooks, the Wall Street lobbyists create by the top Wall Street banks and investment houses, the Derivatives Research Group, and Markit Group's history and founders, and . . . .

Nobody gambled, douchey, it was all by design.

BeetleBailey's picture

watched ten minutes (and I want it back) of this cunt's Netflix......whatever....


Radical Marijuana's picture

Yeah, same with me, BeetleBailey, I attempted to watch the Inequality For All documentary on Netflix a couple of days ago, but got disgusted so fast that I could not watch anymore, since it reminded me too much of mass media presentations. On the other hand, I was able to watch through the debunking video linked through this Zero Hedge article, without getting so frustrated by the presentation of utter bullshit that I could not take it anymore. HOWEVER, I would also respond with the view that there are no reasonable ways to believe that this runaway social polarization, and surpassing destruction of the natural world, would do anything but get worse, faster!

The REAL "free market" included the history of the "free market" in murder and fraud, through the history of warfare and economics. Abstract theories about how to have better "free markets" (including some better sort of monetary system) tend to deliberately ignore the REALITY that governments were the biggest form of organized crime, controlled by the best organized gangs of criminals. The ability of the bankers to deliberately create the conditions which drove runaway social polarization (and worse destruction of the natural world) was FUNDAMENTALLY SYSTEMS OF LEGALIZED LIES BACKED BY LEGALIZED VIOLENCE.

Private property cannot exist outside of some system of public violence. Private property is based on claims backed by coercions. The production of destruction controls production, and there are no fundamental dichotomies between the production of destruction and all other forms of production. Human realities are always organized lies operating robberies, because human realities are always operating as entropic pumps of energy. (Of course, the biggest bullies' bullshit dominated the philosophy of science, so that we understand the concept of entropy backwards, the same as we understand everything else backwards.)

MONEY IS MEASUREMENT BACKED BY MURDER. Governments have attempted to monopolize the ability to murder, in order to back up their rule of law, and especially their power to tax. That power to tax, (and related legal tender laws) are the reasons how and why the enforced frauds of private banks creating the public "money" supply out of nothing was able to triumphantly dominate society. Since the best organized gangs of criminals, the biggest gangsters, were the banksters, that were able to apply the methods of organized crime to dominate the political processes, the result were that the established systems of legalized lies, backed up by legalized violence, are the dominate forms in which those established systems suck up the wealth, and pump it up to the pyramidion people at the top of the social pyramid systems, who are then in a positive feedback loops which enable them to even more dominate the political processes, so that the powers of governments work for them, and against everybody else, more and more ...

Of course, the mainstream moron economists, like Robert Reich, are intellectual mercenaries, whose successful careers are based on working inside of the established systems. Those established systems were based on the history of warfare, whose successes were based on backing up deceits with destruction, which then became the foundation of the currently established systems of enforced frauds. The common thread throughout all of those developments were that the ways that human energy systems actually operate are best described as operating according to the principles and methods of organized crime. Warfare was organized crime on a large scale, while economics also became basically organized crime.

Those basic continuities are due to the ways that energy flows through human systems. The most abstract form of that was that MONEY IS MEASUREMENT BACKED BY MURDER. People who promote return to a gold back money tend to deliberately ignore that what they are actually promoting is the measurement of gold, (backed by murder.) The debt controls are backed by the death controls. The runaway paths we are on, whereby the debt slavery systems drive numbers which generate debt insanities, are necessarily headed towards provoking death insanities. THERE ONLY GENUINE SET OF SOLUTIONS TO THESE PROBLEMS ARE NECESSARILY BETTER DEATH CONTROLS, TO BACK UP BETTER DEBT CONTROLS.

Of course, I recognize that appears to be practically political impossible, especially since we are otherwise headed towards severe social storms, and psychotic breakdowns of the established systems collapsing into chaos. But nevertheless, I still maintain the basic theory that human beings DO operate according to the ways general energy systems operate, EXCEPT we have developed totally backwards ways to understand that, due to the triumph of the biggest bullies' bullshit social stories dominating almost everything regarding the language that we use and the ways that we think.

In my view, there is no doubt that this debunking video hit the nail on the head, that most of the mainstream moron economists are mercenary intellectuals that deliberately ignore the role of the SOURCE of the money supply in their analyses. However, I also then continue to insist that guys like Kim, in their own ways, are almost as superficial as Reich, in that both stay within the same basic frame of reference, as far as they both deliberately ignore how human ecology surrounded political economy.

It is theoretically possible to better understand human ecology as manifesting general energy systems, which also applies to the emerging industrial ecologies, as well has to how natural ecologies operated. Abstractly, the understanding of economics ought to be done within the context of understanding evolutionary ecologies. HOWEVER, real human history has been shaped by warfare being the oldest and best developed social science, upon which basis was built economics, as a social science. Economics is a science the way that warfare is a science. Success in warfare was based on backing up deceits with destruction, while financial success was built on the basis of backing up frauds with force. FURTHERMORE, IT IS THEORETICALLY IMPOSSIBLE THAT THINGS COULD BE DIFFERENT, SINCE HUMAN BEINGS ARE ENERGY SYSTEMS, OPERATING AS ENTROPIC PUMPS!

IF there are going to be some improbable series of political miracles whereby the runaway social inequality becomes rebalanced in better ways, then the necessary source of that MUST be some better democratization of the death controls, to back up some better democratization of the debt controls.

Of course, I doubt that is going to happen. Instead, I expect the imbalanced runaway social polarization (and destruction of the natural world) to continue to get worse, faster, resulting in the debt insanities provoking death insanities. But nevertheless, I still promote the abstract theories that the only genuinely better resolutions to these problems would require enough people going through enough of a series of intellectual scientific revolutions, that then could be applied to politics, in order for them to understand that, as citizens, they were members of an organized crime gang, called their counties, within which context then ended up stuck in vicious spirals of acting like incompetent political idiots, due to the biggest bullies' bullshit social stories being able to dominate the government more and more.



It is not good enough to understand how the biggest gangsters, the banksters, were able to legalize them counterfeiting the public "money" supply out of nothing, but then to follow through with any superficial "solutions" that depend upon returning to honest and sound money, unless one addresses the deeper issues, which is how to operate new murder systems which must necessarily back up that new monetary system. Meanwhile, in the end, the established systems are way too terminally crazy and corrupt to be reformed adequately. Only some kind of monetary revolutions might be sufficient. However, that should be done through a greater use of information, and higher consciousness, about the basic ways that human beings operate as energy systems, which means facing the basic facts that the principles and methods of organized crime necessarily control governments.


What I am suggesting is that the severe social storms ARE going to continue to build and then blow through. The runaway debt insanities ARE going to provoke death insanities. It is in that context that crises and opportunities may arise for real, radical revolutions, but the only ways that those could be better resolved is IF enough people understood how human energy systems could operate better, which necessarily means enough understanding how human energy systems operate through the principles and methods of organized crime, in which the death controlling murder systems are central to all other controls.

The banksters are dominate now because they were able to act as the biggest gangsters, that were able to apply the methods of organized crime to dominate the political processes, to enact the systems of legalized lies, backed by legalized violence, that we are living inside of now, and have been living inside for generation after generation. There are no better resolutions to those problems which can avoid addressing the central issues of the death controls, operated through the context of organized crime. It is impossible for governments to not operate according to the principles and methods of organized crime, because it is impossible for human beings to not operate as general energy systems engaged in entropic pumping.

Kim's analysis was far better than that provided by Reich. However, both are light years away from better understanding of the evolutionary ecologies of energy systems which would be necessary, and which are going to be imperative driven by future events, in one way or another, sooner or later. The on-coming severe social storms, and matching degrees of death insanities that will erupt as the debt insanities are collapsing into chaos, are going to be the actual context in which revolutions might become possible, including monetary revolutions. Obviously, that is going to be one hell of wild ride, which nobody is going to be able to control ...

W.M. Worry's picture

You must be a glutton for punishment. I only made it it to 1m20sec....Is someone paying this guy by the word? Get to the fucking point!

Stackers's picture

Reich is a hard core UC Berkeley marxist. No surprise he would skew the argument to "evil capitalism"

WhyWait's picture

A UC Berkeley Marxist who helped push through NAFTA?  I don't think so!

But who is he then, this darling of the liberals and the "1% left"?  Here in the trenches, we can't escape the fact that our archfoe is the international banksters. If Reich gives them a pass, that's an important clue.

Something's nabbing at the back of my mind ... where have we seen that pattern before?  

Don't tell me, it's on the tip of my tongue!

It's coming to me ...

Wait, wait,

 ... I think I've got it ...

Buh ... b b b buh ...


Barack Obama! 

That Nobel Prize-winning radical speechifier, whose seed money came from Goldman Sachs and CitiBank! (Now morphing before our very eyes into a Neocon!)

Right wing politicians call on us to rally to stop the children at the border, while the "progressives" call us to come to their rescue.  Both (with exceptions) ensnare our emotions, while distracting us from role of the Banksters in turning our borders into war zones.  But without going to the core issue, the malignant heart of the problem, there is no solution, to this or so many other hot button issues of the day!

So thanks for a real contribution.  

Speaking of contributions, who contributed to Reich's campaign when he ran for Governor of Massachusetts?

Raisuli's picture

Rhetorically, are not all arguments skewed to favor one's position. Are there any truly objective positions?

Marco's picture

The 0.1% got richer, my last two employers went bankrupt.

sgt_doom's picture

I find it extremely difficult to believe that the douchey representing Wall Street, Reich, who wrote that godawful drivel, The Work of Nations, and has never badmouthed jobs offshored, but frequently known to apologize for it, is a Marxist.

Ghordius's picture

in Europe we would call him a Social Democrat, leaving "ideological space" between him and, further left, Socialists and then Communists/Marxists

having said that, I agree with you

and yet... sometimes, from afar, I have the impression that the US would be better off if there was a proper channel for his kind of issues related to the poor and labour

then unfettered capitalism has not always a nice face, and a propensity of just throwing money at problems in the hope they "just go away"

Stackers's picture

The real problem is most people confuse the crony corporate fascism that is practiced in the US with capitalism. The US has not practiced capitalism in a century or more. what the US needs is more capitalism.

sgt_doom's picture

I sort of agree with you, but I would label it free enterprise!

AnAnonymous's picture

Lets bring back slavery so we can practise real capitalism in the US once again.

Signed: an American.

Anusocracy's picture

You are just plain stupid.

It's government that enslaves productive people, not the absence of government.

Hunter-gatherers killed their male captives before the advent of government because there was no structure to control them. The potential slave could just walk away.

Government is what has always sanctioned slavery for itself and its chosen elite. The US was founded with lots of chattel slavery and very little government slavery.

Now it has lots of government slavery and virtually no chattel slavery.

besnook's picture

slavery never left only the shackles have changed......and no country can claim otherwise.

whotookmyalias's picture

I don't have the patience to watch anything longer than about 5 minutes.  Plus I'm pretty cynical.  Capitalism is like Democracy. Both are horrible things that can be abused for the enrichment of some over others. Both are also better than anything else out there.  Sort of like the winner of the least ugly contest.

CuttingEdge's picture

There are more negroes in prison working for bugger all now than there were on the plantations pickin cotton.

Slavery is alive and well in the good old USSA...just the task master has changed.

Corporate fascism rocks for the .1%.