Yale University Professor Robert Shiller said the proposed “wealth tax” by Sen. Elizabeth Warren (D., Mass.) is probably a non-starter and could hurt her chances.
“Their proposals have no chance,” Shiller told Bloomberg at the World Economic Forum in Davos, Switzerland.
Yale economist: Elizabeth Warren hurt her chances with proposed wealth tax
Shiller Says Warren Harmed Her Chances by Calling for Higher Taxes
Yale University Professor Robert Shiller discusses the power of giant technology firms like Facebook and Google-owner Alphabet. He also discusses U.S. wealth distribution amid calls from Democratic quarters, including Sen. Elizabeth Warren, for higher taxes on the ultra-rich. Shiller speaks at the World Economic Forum's annual meeting in Davos, Switzerland, on "Bloomberg Surveillance." (Source: Bloomberg)
Shiller: 'I Don't Quite Agree' With Bogle's Ethos, But Still Admire Him
Yale University Professor Robert Shiller discusses the legacy of fund pioneer and Vanguard Group founder John Bogle. He speaks at the World Economic Forum's annual meeting in Davos, Switzerland, on "Bloomberg Surveillance." (Source: Bloomberg)
Bob I want to talk about the unspoken here is this gilded age that we are in how guilded are the gilded of Davos. What is the level of inequality in income and particularly in wealth represented in this valley.
You say unspoken. I thought I pretty much spoke from Parliament. We see the reputation of Davos depends on its access to power both wealth and government. The heads of state who have come here very impressive to share power. The world watches our people. People are attuned to that.
You are our economist it represents a good society in your 2012 book finance and the good society. This morning Voxer us an incredibly important paper on why wages won't go up in the United Kingdom. That's what the study is a very academic paper folks. It's a huge mystery of the strange word monopsony which is where the corporate elite control wages because of their power. Is there any tendency of monopsony in the developed world.
That's buying power. Yeah. So you have I haven't seen this paper but it sounds like monopolistic companies might be able to exploit a rule or a Facebook categorize them as having that power. I would call them natural monopolies. If we had we tolerate their monopoly or monopsony power because we valued so much what they produce which would be damaged if they were split up Professor is it better if there's so many politicians are asking to be split up what would that mean for the fabric of what we're seeing.
I haven't taken a stand on them. When they split now is a good time. BRUCE WILLIS I'm an academics so anything like this comes to my mind that there are many arguments pro and con you have to weigh them carefully. I can see the arguments on both sides. So maybe Google should be split up but don't assume that that's my final decision.
What does the economy need to fill cats. You know some of this sharing economy and the future of technology. You could say that it was Swades but populism. You could say that this is also depressing a lot of the wages. What kind of big tech companies does the world economy.
That it needs. I don't know what need is.
I guess we've grown dependent on them. So Google is the prime example.
How many minutes has it been since you've been on Google because you're on at least five minutes.
That's right. It's kind of. I have not yet taken a vacation. I should try taking a vacation from Google.
I don't know what my life will be like again now these companies become a public good. Are they bordering on utility Stanulis.
Well I know part of this rather than how I think of Wikipedia which is entirely non-profit. It's a great inspiration that it hasn't been captured as far as I can tell. It represents true and so there is that inspiration. Google isn't a non-profit as you know it certainly isn't a professor.
What's the mood like. So we've been trying to figure out I mean we've had a lot of interviews and it's different from 60 different sections or it's different depending on the chief executive and his part of the world and what he see what is the overall mood.
OK this is very subjective. But I think what came across to me is this time is that we're more idealistic and we're not so much this business people.
I ask you about the redistribution of income and wealth not only the mayor of New York but particularly the senator from Massachusetts Elizabeth Warren is talking about is 7 zeros 70 percent tax of some form on the very very very wealthy in her study of economics and society back I'll say to the Dutch this has been a debate do we need to revisit a tax on the ultra wealthy just because they're wealthy to redistribute it through the government process.
That's not my position. I have advocated installing a plan that would kick in in the future hopefully 10 years in the future to do that. If inequality is catastrophic I can't see why that shouldn't be done now. But their proposals have no chance.
But Professor there's a wide body of America that consumers we are at catastrophic right now. Is that a policy the Democrats can run with to the middle ground of America a more conservative America.