Browse content similar to 24/12/2012. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
the first time. -- shown. Time for World Business Report. | :00:14. | :00:21. | |
Welcome to the programme. The markets after Mario Monti it. | :00:21. | :00:25. | |
The man credited with stabilising the Italian economy says he is | :00:25. | :00:29. | |
available to lead a future Italian government. Joseph Steve Lewis | :00:29. | :00:33. | |
tells us wh tells us wh between the rich and poor is widening. -- | :00:33. | :00:39. | |
Joseph Stiglitz. The Japanese yen weakens as the | :00:39. | :00:41. | |
Prime Minister in waiting his at revising the law that guarantees | :00:41. | :00:51. | |
:00:51. | :00:58. | ||
the central bank's independence. -- hints at. Mario Monti says he is | :00:58. | :01:01. | |
available to lead Italy if a coalition is formed in support of | :01:01. | :01:05. | |
his agenda but he will not run in the forthcoming election. Reaction | :01:05. | :01:10. | |
to that has been mixed, with critics saying he was too vague and | :01:10. | :01:14. | |
supporters thankful that he remained in the fray. Unemployment | :01:14. | :01:19. | |
now stands above 11% and rising. That will play into the hands of | :01:19. | :01:24. | |
his rival, Silvio Berlusconi. As entrenched | :01:24. | :01:27. | |
entrenched in recession and austerity measures have hit the | :01:27. | :01:31. | |
population very hard. Internationally and on the markets, | :01:31. | :01:37. | |
Minicredit Mario Monti with stabilising the economy. -- many | :01:37. | :01:43. | |
people credit Mario Monti. The cost of borrowing fell under the can't - | :01:43. | :01:51. | |
- under his leadership. Thank you for joining us. Looking at this | :01:51. | :01:55. | |
statement that he is made, it seems uncertain. Why would he not stand | :01:55. | :02:00. | |
in his own in his own a candidate? is not actually standing or running | :02:00. | :02:09. | |
officially because he has seen the Italian population i | :02:09. | :02:16. | |
supportive of him. At best, they give him or a coalition that would | :02:16. | :02:20. | |
support him 15% of the actual vote and that is not enough to guarantee | :02:20. | :02:25. | |
that he can the Prime Minister again. If he runs in the election | :02:25. | :02:30. | |
and is not able to form a government, he will not be able to | :02:30. | :02:38. | |
become Prime Minister again because... It seems something of a | :02:38. | :02:42. | |
catch 22. On the one hand, there are reasons why he should not stand | :02:42. | :02:49. | |
he says he will support a party that follows austerity and we know | :02:49. | :02:52. | |
that austerity measures are extremely unpopular in Italy. | :02:52. | :02:59. | |
is correct. In fact, he does not want to run officially and the | :02:59. | :03:04. | |
parties that what austerity will not get a lot of votes. At the same | :03:04. | :03:13. | |
time, we know the probability of having a hung parliament with a | :03:14. | :03:23. | |
might be pulled back by the left, the right, the centre, whatever | :03:23. | :03:31. | |
bring together, like in Greece. there is some kind of a hung | :03:31. | :03:34. | |
parliament, will it be the markets that the sight this? Nobody is | :03:34. | :03:39. | |
wanting uncertainty. 2012 was the year of grace. Nobody wants that to | :03:39. | :03:49. | |
:03:49. | :03:50. | ||
repeat with Italy. -- year of Greece. Mario Monti became prime | :03:50. | :04:00. | |
:04:00. | :04:01. | ||
minister because of market pressure. Bonds went very high. They were | :04:01. | :04:07. | |
super high at one point. That is probably still the key to having a | :04:07. | :04:11. | |
change in t change in the moment, it is fair to say that the | :04:11. | :04:15. | |
markets are not putting any pressure on pressure onn addition, | :04:15. | :04:20. | |
that is why things are so relaxed at the moment and there is such a | :04:20. | :04:28. | |
lack of clarity. And it is the end of the year as well. Thank you. | :04:28. | :04:32. | |
The challenges facing Mario Monti and the Italian political system. | :04:32. | :04:35. | |
The issue of wealth inequality was back in the spotlight this year | :04:35. | :04:38. | |
after more protests around the world highlighting the gap between | :04:38. | :04:44. | |
the rich and the poor. The top 1% of American households have seen | :04:44. | :04:49. | |
their income almost quadruple over the last 30 years. However, at the | :04:49. | :04:53. | |
bottom end of the scale, in comes have barely changed. What is behind | :04:53. | :04:59. | |
that growing gap between the haves correspondent spoke with the former | :04:59. | :05:05. | |
and the former Nobel Prize and the economist J economist Jglitz and asked | :05:05. | :05:13. | |
how ever did inequality had become approximately 20% of all the income | :05:13. | :05:21. | |
in the US, has approximately 30% of all the wealth and while they have | :05:21. | :05:25. | |
been doing very well, the rest of the country has not. The recession | :05:25. | :05:35. | |
has made things even worse for them and the recession recovery. 93% of | :05:35. | :05:42. | |
the financial gain went to the top 1%. What contributes to this? | :05:42. | :05:47. | |
Markets do not exist in a vacuum. We have all kinds of laws that | :05:47. | :05:53. | |
shape our e shape our ed the way they has been to favour the very top and | :05:53. | :06:00. | |
we have seen that in our financial markets, where the bank has walked | :06:00. | :06:03. | |
off with you mongers bonuses while the rest of America was left | :06:03. | :06:11. | |
picking up the pieces -- with massive bonuses. Chief executives | :06:11. | :06:14. | |
of companies were able to walk away with larger shares of the corporate | :06:14. | :06:17. | |
time not because they are more productive but because they have | :06:17. | :06:23. | |
mastered the art of taking a larger part of the corporate income for | :06:23. | :06:29. | |
themselves. How can this change? Will anything changed? The irony is | :06:29. | :06:34. | |
that as the income inequality has got larger, we have been doing less | :06:34. | :06:43. | |
marginal marginal tax rates of 70%. Now they | :06:43. | :06:48. | |
are at 35%. If you make your money by carried interest, capital gains, | :06:48. | :06:53. | |
the taxes UK are even lower than that. Mitt Romney, one of the | :06:53. | :07:01. | |
presidential candidates, paid taxes on his reported income, keeping | :07:01. | :07:06. | |
much of that outside the US, of only 14%. Other people making | :07:06. | :07:14. | |
their their living, were paying 28%, 35%. | :07:14. | :07:19. | |
We clearly have a system that does not correct to the inequality and | :07:19. | :07:25. | |
actually encourages a distortion in our economy. What are the long-term | :07:25. | :07:28. | |
implications, especially when it comes to the fallout for the wider | :07:29. | :07:32. | |
economy? America has always characterised itself as a land of | :07:33. | :07:37. | |
opportunity, the land of the American Dream, is a myth. It is no | :07:37. | :07:45. | |
longer true. And we have less industrial countries. What that | :07:45. | :07:51. | |
means is that a child's life prospects are more dependent on the | :07:51. | :07:58. | |
income and education of its parents than in the UK, much less than in | :07:58. | :08:03. | |
the Scandinavian countries. If you are born to poor parents, the | :08:03. | :08:10. | |
likelihood is that you will remain poor and that means that we are | :08:10. | :08:16. | |
wasting one of our most valuable resources, our human potential. | :08:16. | :08:20. | |
Joseph Stiglitz in conversation with our correspondent. The | :08:20. | :08:24. | |
Japanese yen has weakened it today after some rather forceful comments | :08:24. | :08:34. | |
:08:34. | :08:37. | ||
from the new kind minister -- Prime Minister. What was he saying? | :08:37. | :08:43. | |
Shinzo Abe has been saying that he wants the Bank of Japan to set an | :08:43. | :08:48. | |
inflation target of 2%. Of course, he has now been elected and will be | :08:48. | :08:55. | |
weekend on local television, he said that if the Bank of Japan | :08:55. | :08:58. | |
refused to set this inflation target, he would consider revising | :08:58. | :09:03. | |
the legislation that currently guarantees its independence. If | :09:03. | :09:06. | |
that were to happen, it would mean that the government could put | :09:06. | :09:10. | |
direct pressure on the central bank to implement all kinds of measures | :09:10. | :09:14. | |
including what Shinzo Abe has been suggesting, which is unlimited | :09:14. | :09:18. | |
monetary easing - printing more money. That would flood the market | :09:18. | :09:21. | |
with extra Japanese yen, which he says would encourage people to | :09:21. | :09:27. | |
spend more money to boost the economy. In addition, it would also | :09:27. | :09:33. | |
devalue the Japanese yen. It is not as the prime minister in waiting, | :09:33. | :09:38. |