All language subtitles for Park.Avenue.Money.Power.And.The.American.Dream.2012.2012.720p.WEBRip.x264.AAC-[YTS.MX]

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[ CLASSICAL MUSIC PLAYS ]

>> Narrator: THIS STRETCH

OF PARK AVENUE ON THE

UPPER EAST SIDE OF MANHATTAN

IS THE WEALTHIEST NEIGHBORHOOD

IN NEW YORK CITY.

THIS IS WHERE THE PEOPLE AT

THE TOP OF THE LADDER LIVE...

THE UPPER CRUST...

THE ULTRA RICH.

BUT THIS STREET IS ABOUT A LOT

MORE THAN MONEY.

IT'S ABOUT POLITICAL POWER.

THE RICH HERE HAVEN'T JUST USED

THEIR MONEY TO BUY FANCY CARS,

PRIVATE JETS, AND MANSIONS.

THEY'VE ALSO USED IT TO RIG

THE GAME IN THEIR FAVOR.

OVER THE LAST 30 YEARS, THEY'VE

ENJOYED UNPRECEDENTED PROSPERITY

FROM A SYSTEM THAT THEY

INCREASINGLY CONTROL.

BUT IF YOU HEAD NORTH FOR ABOUT

10 MINUTES, THIS PARK AVENUE

COMES TO AN END AT

THE HARLEM RIVER.

ON THE OTHER SIDE OF THE WATER,

THERE IS ANOTHER PARK AVENUE.

THIS IS THE SOUTH BRONX,

HOME TO AMERICA'S POOREST

CONGRESSIONAL DISTRICT.

[ SIREN WAILS ]

THERE ARE 700,000 PEOPLE IN THIS

DISTRICT.

ALMOST 40% OF THEM LIVE IN

POVERTY, MAKING LESS THAN $40

A DAY.

FROM HERE, THE LAST 30 YEARS

HAVE LOOKED VERY DIFFERENT THAN

THE VIEW FROM MANHATTAN'S

PARK AVENUE.

PEOPLE HERE HAVE SEEN THEIR

WAGES FALL AND THE COST OF

ALMOST EVERYTHING ELSE GO

THROUGH THE ROOF.

THEY'VE LOST THEIR JOBS IN

A RECESSION CAUSED BY BANKERS

ACROSS THE RIVER.

THEY'VE WATCHED THEIR CHILDREN

STRUGGLE AND FAIL IN SCHOOLS,

AND THEY'VE ENDED UP EVEN WORSE

OFF THAN THEY WERE A GENERATION

AGO.

BUT AMERICA IS STILL A LAND

OF OPPORTUNITY, ISN'T IT?

A PLACE WHERE ANYONE CAN MAKE

IT TO THE TOP IF THEY'RE WILLING

TO WORK HARD AND SET THEIR

SIGHTS HIGH.

THAT'S WHAT MAKES THIS COUNTRY

GREAT.

ISN'T THAT WHAT WE TELL

OURSELVES?

BUT IN TODAY'S AMERICA, WHAT ARE

THE CHANCES THAT SOMEONE WHO

STARTS THEIR LIFE ON THIS

PARK AVENUE WILL END UP LIVING

ON THIS PARK AVENUE?

[ CLASSICAL MUSIC FINALE PLAYS ]

[ UP-TEMPO MUSIC PLAYS ]

>> LET'S IMAGINE THAT YOU'RE

INVITED TO A GAME OF MONOPOLY,

AND YOU ARRIVE AT THIS GAME TO

FIND OUT THAT ALL OF THE

PROPERTY'S BEEN DIVIDED UP,

ALL OF THE MONEY'S ALREADY BEEN

HANDED OUT, BUT YOU'RE TOLD,

"HEY, GO AHEAD AND SIT DOWN,

PLAY THE GAME.

WE'RE GONNA GIVE YOU A CHANCE

TO PLAY JUST LIKE EVERYONE

ELSE"?

THERE ARE SOME IN SOCIETY THAT

HAVE A LOT OF ACCESS, A LOT

OF SOCIAL MOBILITY, A LOT OF

RESOURCES TO DO THE THINGS THAT

THEY WANT AS OPPOSED TO OTHER

PEOPLE WHO ARE MORE

DISADVANTAGED, MORE

UNDERPRIVILEGED, DON'T HAVE

THE SAME LEVELS OF RESOURCES.

>> Narrator: PAUL PIFF IS

A SOCIAL PSYCHOLOGIST AT

THE UNIVERSITY OF CALIFORNIA,

BERKELEY, WHO STUDIES THE

PSYCHOLOGY OF WEALTH

AND THE CONSEQUENCES OF

INEQUALITY IN OUR SOCIETY.

I READ ABOUT AN EXPERIMENT HE

CONDUCTED, AND IT CAUGHT MY

INTEREST.

>> * COME ON *

* LET'S PLAY MONOPOLY *

* CASH FUN AND RITZY PROPERTY *

>> OH, YEAH, YEAH.

>> Narrator: MONOPOLY FIRST

BECAME A HIT DURING

THE GREAT DEPRESSION.

IT'S A GAME OF RUTHLESS,

DOG-EAT-DOG CAPITALISM.

>> * PASSING GO *

>> Narrator: TRUE TO THE

AMERICAN DREAM, EVERYONE HAS AN

EQUAL OPPORTUNITY, STARTING WITH

THE SAME AMOUNT OF MONEY AND

THE SAME CHANCE TO SUCCEED.

WINNING IS A MIX OF LUCK AND

SKILL.

FOR HIS EXPERIMENT, PIFF RIGGED

THE GAME BY GIVING ONE PLAYER

A HUGE ADVANTAGE.

>> SO THERE ARE TWO PLAYERS.

THEY DON'T KNOW EACH OTHER.

YOU FLIP A COIN TO DETERMINE

YOUR POSITION.

SO IT'S RANDOM, ALMOST LIKE YOUR

EMERGENCE INTO THE WORLD IS

RANDOM -- WHETHER YOU LAND IN

THIS FAMILY OR THIS OTHER

FAMILY.

IF YOU WERE THE RICH PERSON,

YOU GOT A LOT MORE MONEY.

YOU GOT TWO TIMES AS MUCH MONEY.

WHEN YOU PASS GO, YOU COLLECT

$200.

YOU GET TO ROLL BOTH DICE,

SO YOU'RE ALLOWED TO MOVE AROUND

THE BOARD QUICKER.

>> [ LAUGHS ]

>> NOW, IF YOU'RE ON THE LOW

END, WE REALLY HIT YOU HARD.

YOU GOT HALF THE MONEY.

WHEN YOU PASSED GO, YOU

COLLECTED HALF THE SALARY.

YOU ONLY GOT TO ROLL ONE DIE,

SO YOU'RE MOVING AROUND THE

BOARD VERY, VERY SLOWLY AS

THE OTHER PERSON'S JUST WHIZZING

AROUND YOU, COLLECTING $200

EVERY COUPLE OF TURNS.

>> Narrator: EVEN IN A GAME

THAT'S OPENLY RIGGED, THE RICH

PLAYERS INEVITABLY EXHIBIT A

SENSE OF ENTITLEMENT.

THEY GOBBLE UP MORE OF THE

CAREFULLY PLACED PRETZELS.

THEY COME TO BELIEVE THAT THEY

DESERVE TO WIN.

>> [ CHUCKLES ]

>> Narrator: AND THEY SHOW NO

CONCERN FOR THE MISFORTUNE OF

THE POOR PLAYERS EVEN THOUGH

THE POOR PLAYERS DON'T STAND

THE SLIGHTEST CHANCE OF WINNING.

>> THE IDEA OF THE

AMERICAN DREAM IS THAT

EVERYONE'S GOT AN EQUAL

OPPORTUNITY.

YOU JUST GOT TO DECIDE TO PLAY.

BUT, IN FACT, THERE ARE LARGE

GROUPS OF PEOPLE THAT EXPERIENCE

THE GAME AS UNFAIR.

THE OPPORTUNITY'S NOT THERE.

ALL THE RULES HAVE BEEN DECIDED.

THE PROPERTY'S ALREADY BEEN

BOUGHT UP AND THE MONEY'S

ALREADY IN THE HANDS OF

THE OTHER PLAYERS.

>> GET A REBOUND.

GO! GO!

>> FIRST TIME FOR EVERYTHING.

>> THAT'S MY GOAL.

>> I'M MICHAEL JORDAN.

>> I'M KOBE.

>> I-I-I'M RAY ALLEN!

>> ALMOST ALL FAMILIES START OUT

WITH WANTING THE SAME THINGS

FOR THEIR CHILDREN.

THEY WANT THEM TO BE SAFE,

THEY WANT THEM TO BE HAPPY,

AND THEY WANT THEM TO BE

SUCCESSFUL AND HEALTHY.

BUT EVEN BEFORE BIRTH, SO MANY

KIDS START THAT RACE BEHIND.

THEY COME INTO A NEIGHBORHOOD

THAT'S UNSAFE.

[ SIREN WAILS ]

MAYBE THEY'RE IN AN

OVERCROWDED APARTMENT.

THEY DON'T HAVE HEALTHY

NUTRITION.

THEY MIGHT HAVE MEDICAL ISSUES

THAT AREN'T BEING ADDRESSED.

I WOULD SAY THEIR NUMBER-ONE

CHALLENGE IS JUST A LACK OF

OPPORTUNITIES IN GENERAL.

>> Narrator: IN PARTS OF THE

SOUTH BRONX, UNEMPLOYMENT HAS

REACHED 19%, AND MANY FAMILIES

STRUGGLE JUST TO PUT FOOD ON

THE TABLE.

PASTOR COLIN DUNKLEY AND HIS

WIFE, APRIL, RUN A FOOD PANTRY

IN THE SOUTH BRONX THAT FEEDS

ABOUT 200 STRUGGLING FAMILIES

EVERY WEEK.

>> I LIKE HELPING PEOPLE.

I LIKE SERVING THE PEOPLE,

I LIKE HELPING THE PEOPLE.

IF THERE'S SOMETHING WE COULD

DO TO BLESS THEM, THAT'S WHAT

WE'RE GONNA DO.

>> SOMETIME WE GET THE LITTLE

SIPPY CAPRI SUN JUICES.

WE'LL PUT THOSE IN A BAG FOR

THE KIDS.

>> Narrator: BUT THEY DON'T HAVE

NEARLY ENOUGH TO MEET THE

DEMAND.

WHEN WE VISITED, THEY RAN OUT

OF FOOD IN 15 MINUTES.

[ INDISTINCT TALKING ]

>> THERE IS NO MORE FOOD AT THIS

TIME.

YOU CAN COME BACK NEXT MONDAY

AT 2:00.

>> WHAT DO I DO?

>> THAT'S IT, MOMMY.

THAT'S IT.

NO, SIR, I'M SORRY -- NO MORE.

>> OKAY, OKAY.

>> IT IS VERY, VERY HARD TO PULL

YOURSELF OUT OF EXTREME POVERTY

IN THE UNITED STATES.

IT ALMOST NEVER HAPPENS.

THIS RUNS COMPLETELY COUNTER

TO WHAT PEOPLE'S NOTION OF

AMERICA HAS BEEN FOR A VERY LONG

TIME.

WE THINK OF OURSELVES AS

THE LAND OF OPPORTUNITY.

MOBILITY IN THE UNITED STATES

LAGS MOST OTHER ADVANCED

INDUSTRIAL DEMOCRACIES.

>> WHEN I WAS GROWING UP, THE

IMAGE OF AMERICA, THE SELF-IMAGE

WAS OF A VAST MIDDLE-CLASS

COUNTRY.

OF COURSE, THERE WAS A SMALL

RICH GROUP AND THERE WERE SOME

POOR, BUT AMERICA PRIDED ITSELF

AND UNDERSTOOD THAT ITS HEALTH

WAS BECAUSE OF A VAST MIDDLE

CLASS.

WE'RE NOT THAT KIND OF SOCIETY

ANYMORE.

>> Narrator: THERE'S ALWAYS BEEN

A GAP BETWEEN THE WEALTHIEST IN

OUR SOCIETY AND EVERYONE ELSE.

BUT IN THE LAST 30 YEARS,

SOMETHING CHANGED.

THAT GAP BECAME

THE GRAND CANYON.

>> THE INCOMES OF PEOPLE AT

THE LOWER END STAGNATED.

A DISPROPORTIONATE AMOUNT OF

THE GROWTH IN THE ECONOMY HAS

ACCRUED TO THOSE AT THE UPPER

END.

>> Narrator: THIS IS WHAT

AMERICA'S ECONOMIC PIE LOOKED

LIKE IN THE DECADES AFTER

WORLD WAR II.

INCOME GAINS WERE SHARED BY

EVERYONE WITH BIG PORTIONS GOING

TO AVERAGE AMERICANS.

BUT SINCE THE LATE 1970s,

THE BOTTOM 90% HAVE SEEN THEIR

SHARE OF THE PIE COMPLETELY

DEVOURED BY THE TOP 1%.

>> THE WEALTHY ARE GETTING AN

ENORMOUS PERCENTAGE OF ALL OF

THE GAINS IN THE ENTIRE ECONOMY.

WHEN I TALK ABOUT THE WEALTHY,

I'M TALKING ABOUT LIKE IN THE

THOUSANDS OF PEOPLE.

>> Narrator: THOUSANDS MIGHT BE

OVERSTATING IT.

AS OF 2010, ONLY 400 OF THE

RICHEST AMERICANS CONTROLLED

MORE WEALTH THAN THE BOTTOM HALF

OF AMERICAN HOUSEHOLDS.

THAT'S 150 MILLION PEOPLE.

THE QUESTION IS, WHAT ARE THE

PEOPLE AT THE TOP GONNA DO WITH

ALL THAT MONEY?

>> THERE IS A LITTLE TINY GROUP,

AND IT'S PROBABLY 1% OF THE 1%.

THOSE PEOPLE ARE CONCENTRATED

IN A VERY SMALL NUMBER OF

PLACES.

NEW YORK HAS BEEN ONE OF THOSE

PLACES SINCE THE EARLY

19th CENTURY.

IT HAS BEEN A WORLD CITY WITH

WORLD-CLASS FORTUNES, AND IT HAS

BEEN A MAGNET FOR PEOPLE WHO

LIVE IN THE 1% OF THE 1%.

I WAS IN A TAXI GOING DOWN

FIFTH AVENUE, LOOKING FOR

THE RICHEST APARTMENT BUILDING

IN NEW YORK.

THERE WERE ABOUT 10 BUILDINGS

THAT WERE ON THE INITIAL LIST.

740 PARK BECAME THE EPICENTER

OF THE PEOPLE WHO RULED THE

WORLD -- TRULY THE MASTERS OF

THE UNIVERSE.

THEY ALL LIVED AT 740 PARK.

IT WAS KNOWN BEFORE MY BOOK

AS THE ROCKEFELLER BUILDING,

BUT, IN FACT, ROCKEFELLER WAS

NOT ONE OF THE ORIGINAL PEOPLE

IN THE BUILDING.

IT WAS BUILT BY JACKIE KENNEDY'S

GRANDFATHER JAMES T. LEE

IN A CONSORTIUM WITH A GROUP

OF THE PEOPLE WHO WERE

CONSIDERED TO BE RESPONSIBLE

FOR THE MARKET CRASH OF 1929

AND THE DEPRESSION THAT

FOLLOWED, AND THEN IT BECAME

KIND OF THE STANDARD OIL

BUILDING.

IT WAS A BUILDING WHERE LOTS

OF STANDARD OIL EXECUTIVES

AND THEIR FRIENDS ALL LIVED.

IT WAS TRULY CONSIDERED

THE HOLY GRAIL FOR A CERTAIN

KIND OF WEALTHY NEW YORKER.

NOW THE LARGEST CATEGORY IN

740 PARK ARE HEDGE FUND GUYS,

AND THEY'RE THE PEOPLE WITH

THE MOST MONEY NOW.

THEY'RE THE EQUIVALENT OF

THE OIL PEOPLE FROM THE '30s.

>> THESE GUYS RULED THE WORLD,

YOU KNOW.

THEY ARE MULTIBILLIONAIRES

OF, YOU KNOW, THE C.E.O.s

OF THE MAJOR CORPORATIONS IN

THE WORLD.

>> Narrator: THIS DOORMAN ONCE

WORKED AT 740 PARK AVENUE.

HE AGREED TO BE INTERVIEWED

UNDER THE CONDITION THAT WE HIDE

HIS FACE AND ALTER HIS VOICE.

>> TO WORK AT 740, YOU REALLY

NEED TO KNOW SOMEBODY WITHIN

THE BUSINESS.

YOU KNOW, YOU'RE WORKING AT

THE TOP BUILDING IN THE WORLD.

IT'S ONLY 31 UNITS.

IT'S NOT A LOT OF RESIDENTS,

BUT THEY'RE HIGH-TEMPERED,

AND, YOU KNOW, YOU HAVE TO HAVE

A THICK SKIN TO WORK THERE.

YOU'RE GONNA BE DEALING WITH

DETESTABLE PEOPLE, AND YOU'RE

GONNA BE DEALING WITH

BILLIONAIRES.

YOU NEED TO KNOW EVERYTHING

ABOUT THE RESIDENTS -- WHAT TIME

THEY WAKE UP TO GO TO

WALL STREET, WHOSE CAR'S WHICH,

WHO LIKES TO GET THEIR OWN DOOR,

WHO GETS IN THE PASSENGER SEAT,

WHO GETS IN THE BACKSEAT.

YOU KNOW, THESE THINGS DON'T

SEEM LIKE A BIG THING TO ME AND

YOU, BUT EVEN A MINOR MISHAP,

AND, YOU KNOW, YOU'LL BE FIRED

STRAIGHTAWAY.

>> YOU'VE GOT JOHN THAIN,

THE C.E.O. WHO PRESIDED OVER

THE DOWNFALL OF MERRILL LYNCH.

EZRA MERKIN, WHO WAS THE FEEDER

TO BERNIE MADOFF.

DAVID KOCH, WHO IS THE RICHEST

PERSON IN THE BUILDING.

THEN, OF COURSE,

STEVE SCHWARZMAN, THE POSTER

CHILD OF CAPITALISTIC GREED

IN THE LAST 10 YEARS.

>> Narrator: BILLIONAIRE

STEPHEN SCHWARZMAN, ONE OF

THE KINGS OF PRIVATE EQUITY,

LIVES IN 740 PARK'S MOST

EXTRAVAGANT APARTMENT.

SCHWARZMAN WAS A MANAGING

DIRECTOR AT LEHMAN BROTHERS

BEFORE CO-FOUNDING THE

BLACKSTONE GROUP.

HE IS ONE OF THE MOST PROMINENT

C.E.O.s WHEN IT COMES TO

LOBBYING FOR TAX POLICIES

THAT FAVOR THE ULTRA RICH.

>> HE WAS A STRANGE GUY,

MR. SCHWARZMAN.

>> THANK YOU FOR THE OPPORTUNITY

TO ADDRESS THE 66th ANNUAL

ALFRED E. SMITH

MEMORIAL FOUNDATION DINNER.

WE CALL IT OCCUPY WALDORF.

[ LAUGHTER ]

>> HE SEEMED TO BE OUT OF

THE PUBLIC EYE, BUT THEN THESE

LITTLE SPURTS WHERE HE'D HAVE

A 60th BIRTHDAY PARTY, HE HAD

ROD STEWART PLAY, AND IT WAS ALL

OVER THE PAPERS, AND HE HAD

A REPLICA OF HIS APARTMENT BUILT

IN THIS HOTEL, AND IT WAS JUST

COMPLETELY RIDICULOUS.

HE'D HAVE HIS ANNUAL

CHRISTMAS PARTY, AND HE'D HAVE

25 CHRISTMAS TREES COME IN --

THESE MASSIVE CHRISTMAS TREES.

>> 25 CHRISTMAS TREES?

>> YEAH.

I MEAN, EVERY ROOM WOULD GET

A CHRISTMAS TREE AND BE FULLY

DECORATED.

>> STEVE SCHWARZMAN LIVES IN

THE APARTMENT THAT HAD

PREVIOUSLY BEEN OWNED BY

JOHN D. ROCKEFELLER JR.

IT'S A SPRAWLING APARTMENT.

IT'S 37 ROOMS.

LAVISH BEYOND YOUR WILDEST

IMAGINING -- YOU KNOW, 20,000

SQUARE FEET.

>> Narrator: SCHWARZMAN PAID

JUST UNDER $30 MILLION FOR THIS

APARTMENT -- POCKET CHANGE FOR

A WALL STREET TYCOON WORTH

OVER $5 BILLION.

>> IF A FEW PEOPLE, YOU KNOW,

DO REALLY WELL, WHY IS THAT SUCH

A BIG DEAL?

ISN'T THAT JUST PROOF OF THE

AMERICAN DREAM -- YOU WORK HARD

AND YOU'RE SUCCESSFUL?

WE AS A SOCIETY HAVE VERY

COMPLEX VIEWS ABOUT ECONOMIC

INEQUALITY.

AMERICANS ARE NOT OF THE VIEW

THAT ALL INEQUALITIES OF WEALTH

OR INCOME ARE UNJUST, AND,

IN FACT, THEY THINK IF YOU WORK

HARDER, IF YOU SEIZE

OPPORTUNITIES, THEN YOU SHOULD

BE ABLE TO GET AHEAD.

>> Narrator: JACOB HACKER IS

A POLITICAL SCIENTIST AT YALE

AND THE CO-AUTHOR OF

"WINNER-TAKE-ALL POLITICS,"

WHICH ARGUES THAT THIS

EXTRAORDINARY ACCUMULATION

OF WEALTH AT THE TOP ISN'T

JUST ABOUT HARD WORK.

IT'S ABOUT WEALTHY INTERESTS

USING THE POLITICAL SYSTEM

TO RIG THE RULES IN THEIR FAVOR.

>> THERE'S BEEN A REINFORCING

CYCLE.

THOSE AT THE TOP HAVE DONE WELL.

THEY'VE INVESTED IN POLICIES

THAT ARE FAVORABLE TO THEM, AND

THEY'VE DONE EVEN BETTER, AND

THEN THEY'VE TURNED A LOT OF

THAT MONEY BACK INTO POLITICS.

>> Narrator: TO UNDERSTAND HOW

BIG MONEY RIGS THE RULES IN

WASHINGTON, I SOUGHT OUT THE

POSTER CHILD FOR POLITICAL

CORRUPTION, FORMER LOBBYIST

JACK ABRAMOFF.

A FEW YEARS AGO, I MADE A FILM

VERY CRITICAL OF JACK.

NOW AFTER SPENDING NEARLY FOUR

YEARS IN FEDERAL PRISON FOR

CONSPIRACY TO BRIBE PUBLIC

OFFICIALS, HE'S TOURING

THE COUNTRY TRYING TO PROMOTE

REFORM.

>> I WISH I COULD TELL YOU THAT

IN THE MIDST OF ALL OF MY

LOBBYING ACTIVITY, I CAME TO

AN EPIPHANY, BUT I DIDN'T.

IT, UNFORTUNATELY FOR ME,

REQUIRED MY DEMISE.

>> JACK ABRAMOFF HAS PLED GUILTY

TO FEDERAL CORRUPTION CHARGES.

>> BUT EVENTUALLY I DECIDED

TO LOOK HONESTLY AT THE PAST

ACTIVITIES I ENGAGED IN.

I ALSO SYSTEMICALLY LOOKED AT

THE OVERALL PICTURE AND REALIZED

THE SYSTEM ITSELF WAS REALLY

BADLY IN DISREPAIR.

>> * I'M JUST A BILL *

* YES, I'M ONLY A BILL *

* AND I'M SITTING HERE ON

CAPITOL HILL *

>> Narrator: THIS

SCHOOLHOUSE ROCK VIDEO FROM

1975 IS STILL USED TO TEACH

MANY AMERICANS ABOUT HOW THEIR

GOVERNMENT IS SUPPOSED TO WORK.

>> SOME FOLKS BACK HOME DECIDED

THEY WANTED A LAW PASSED, SO

THEY CALLED THEIR LOCAL

CONGRESSMAN, AND HE SAID,

"YOU'RE RIGHT.

THERE OUGHT TO BE A LAW."

THEN HE SAT DOWN AND WROTE ME

OUT AND INTRODUCED ME TO

CONGRESS, AND I BECAME A BILL.

>> IT WAS VERY CUTE, BUT IT'S

NOT WHAT GOES ON IN WASHINGTON.

THE BILL IS VERY RARELY --

I WOULD SAY NEVER TYPED UP

BY THE CONGRESSMAN AFTER HEARING

FROM A DIVERSE GROUP OF

CITIZENS.

YOU KNOW, THE STAFF ARE BUSY,

THE CONGRESSMEN ARE BUSY, SO

THEY FREQUENTLY PASS AND STILL

AVAIL THEMSELVES OF THE

SERVICES, LET'S CALL THEM,

OF THE LOBBYISTS TO WRITE

THESE BILLS.

THE LOBBYISTS WILL BRING IN

THE EXACT DRAFT OF WHAT THEY

WANT BECAUSE THEY WANT TO MAKE

SURE IT IS EXACTLY WHAT THEY

NEED.

>> NOW, AS A LOBBYIST, WHAT WAS

YOUR LEVERAGE IN TERMS OF

GETTING MEMBERS TO SPONSOR THE

BILLS THAT YOU HAD WRITTEN?

>> A LOBBYIST NEEDS TO GET

TO THE DECISION-MAKER, THE

CONGRESSMAN OR THE STAFF, AND

THAT INVOLVES, UNFORTUNATELY,

FINANCIAL CONVEYANCES.

>> ONE OF THE DIRTY LITTLE

SECRETS IN WASHINGTON TODAY

IS HOW MUCH TIME MEMBERS OF

THE HOUSE AND SENATE SPEND

EVERY WEEK -- NOT JUST IN

THE ELECTION SEASON, BUT ALL

THE TIME, YEAR-ROUND, ON THE

TELEPHONE ASKING PEOPLE FOR

MONEY.

IT'S BEGGING FOR MONEY.

IT'S A SAD SPECTACLE.

>> WHEN YOU HAVE CAMPAIGNS THAT

ARE COSTING TENS OF MILLIONS

OF DOLLARS, THE PEOPLE WHO HAVE

THE MONEY WANT SOMETHING BACK.

MONEY IS BEING USED TO BUY

RESULTS.

THAT IS THE PROBLEM.

THAT'S HOW I USED MONEY.

I KNOW WHAT I WAS DOING.

>> Narrator: SO WHEN DID THIS

ALL BEGIN?

WHEN DID BIG MONEY TAKE CONTROL

OF WASHINGTON?

>> IT REALLY HAS TO DO WITH

THE MOBILIZATION OF BUSINESS

THAT OCCURRED IN THE MID 1970s.

BECAUSE OF RALPH NADER AND OTHER

CORPORATE REFORMERS, BUSINESS

WAS PUSHED BACK STRONGLY ON

THE DEFENSIVE.

>> AIR AND WATER POLLUTION

CONTROL, SAFER CARS AND

HIGHWAYS, AND MANY, MANY BETTER

WAYS OF DOING THINGS.

WE'RE A RICH COUNTRY, BUT WE'RE

NOT DISTRIBUTING IT FOR OUR

MAJOR PUBLIC NEEDS.

>> RALPH NADER, A DEEPLY, DEEPLY

HATED FIGURE BY CORPORATE

AMERICA IN THOSE DAYS.

IT SCARED THEM TO DEATH.

>> AND WHAT DID BUSINESS DO?

WELL, THEY FOLLOWED THE

PRESCRIPTION OF THE FUTURE

SUPREME COURT JUSTICE

LEWIS POWELL, WHO WROTE AN

INFLUENTIAL MEMO FOR THE

CHAMBER OF COMMERCE SAYING

THAT BUSINESS NEEDED TO

ORGANIZE.

BUSINESSMEN OF THE WORLD,

UNITE.

>> Narrator: LEWIS POWELL,

A CORPORATE LAWYER FOR THE

TOBACCO INDUSTRY, WAS APPOINTED

TO THE SUPREME COURT BY

RICHARD NIXON IN 1972.

PRIOR TO JOINING THE COURT,

POWELL SENT A CONFIDENTIAL

MEMO TO THE U.S. CHAMBER OF

COMMERCE.

IN IT, POWELL TARGETED

RALPH NADER AS THE BIGGEST ENEMY

OF AMERICAN BUSINESS AND

DESCRIBED A ROAD MAP FOR THE

CORPORATE TAKEOVER OF AMERICAN

PUBLIC INSTITUTIONS.

IT CALLED FOR BIG CORPORATIONS

TO BECOME MORE AGGRESSIVE IN

MOLDING AMERICAN POLITICS AND

LAW.

>> CORPORATE AMERICA HEEDED THAT

CALL.

YOU SAW AN ENORMOUS BUILD-UP

DURING THE 1970s IN CORPORATE

LOBBYING POWER.

>> THEY INVESTED ENORMOUS NEW

SUMS IN POLITICS.

THEY STARTED TO CHANGE THEIR

STRATEGIES, MOVING FROM

NEW YORK, IN THE CASE OF ONE

BIG BUSINESS ORGANIZATION, TO

WASHINGTON, DEVELOPING PERSONAL

RELATIONSHIPS BETWEEN C.E.O.s

AND POLITICIANS.

>> Narrator: THE RESULT WAS

A SHIFT FROM POLICIES THAT

BENEFITED THE MIDDLE CLASS

AND POOR TO POLICIES THAT

FAVORED WEALTHY INTERESTS.

>> IN 1978 AND BEYOND, YOU GET

A MAJOR DEFEAT FOR ORGANIZED

LABOR, A DEFEAT OF AN EFFORT

TO LINK THE MINIMUM WAGE TO

GENERAL WAGE INFLATION SO THAT

THE MINIMUM WAGE WOULDN'T JUST

ERODE OVER TIME.

YOU GET THE PASSAGE OF MASSIVE

TAX CUTS FOR THE RICH, INCLUDING

A BIG REDUCTION ON CAPITAL-GAINS

TAX RATE.

LOBBYING WAS A

$400-MILLION-A-YEAR INDUSTRY

IN THE 1980s, AND IT'S ABOUT

A $4-BILLION INDUSTRY TODAY.

>> WASHINGTON IS ALMOST OWNED

AND OPERATED BY THE U.S.

CORPORATE SECTOR AT THIS POINT.

THERE ARE SO MANY BILLIONS OF

DOLLARS OF SPENDING ON LOBBYING.

THERE ARE SO MANY LOBBYISTS

THAT ARE IN THE ROOM WRITING

THE REGS, WRITING THE LAWS

RIGHT NOW.

THERE IS SO MUCH FINANCING

OF POLITICAL CAMPAIGNS.

THERE ARE SO MANY BOUGHT

POLITICIANS.

>> Narrator: OUR CIVICS BOOKS

TELL US THAT THE PRESIDENT

IS THE MOST POWERFUL PERSON

IN THE WORLD AND THAT SPECIAL

INTERESTS MUST GO TO WASHINGTON

TO PETITION THE GOVERNMENT.

BUT WHEN IT COMES TIME TO RAISE

MONEY, OUR PRESIDENTS GO HAT

IN HAND TO THE PEOPLE WHO

REALLY HAVE THE POWER.

IN 2007, PRESIDENT

GEORGE W. BUSH MADE

A PILGRIMAGE TO

STEVE SCHWARZMAN'S APARTMENT

TO ASK FOR MONEY FOR THE

REPUBLICAN NATIONAL COMMITTEE.

>> THE SECRET SERVICE WERE

COMING FOR, I WOULD SAY, THREE

TO FOUR MONTHS BEFORE THE ACTUAL

VISIT, AND THEY WOULD COME EVERY

WEEK JUST TO CHECK UP, LOOK

AROUND THE BUILDING.

THEY DID BACKGROUND CHECKS ON US

FOR SURE.

THEY HAD THE SHARPSHOOTERS OUT.

THEY BROUGHT MR. BUSH TO

MR. SCHWARZMAN'S APARTMENT.

HE SPENT MAYBE 15 MINUTES OUT,

AND THAT'S IT.

>> WHY DID JOHN DILLINGER ROB

BANKS?

THAT'S WHERE THE MONEY IS.

WELL, 740 PARK IS WHERE THE

MONEY IS, AND IN THIS DAY AND

AGE, ANY CANDIDATE WHO DIDN'T GO

TO 740 PARK WOULD PROBABLY BE

FOOLISH.

>> I'M MITT ROMNEY.

I BELIEVE IN AMERICA.

AND I'M RUNNING FOR PRESIDENT

OF THE UNITED STATES.

[ CHEERS AND APPLAUSE ]

>> ROMNEY HAS A PRIVATE MEETING

ON PARK AVENUE WITH PROMINENT

C.E.O.s EAGER FOR CHANGE IN

WASHINGTON.

>> MITT ROMNEY WENT TO KISS

MR. SCHWARZMAN'S RING AND MEET

SOME OF HIS FRIENDS AND NO DOUBT

COLLECT A FEW CHECKS.

>> WHAT MAKES HIM GOOD FOR

THE COUNTRY?

>> MITT -- HE'S A NATURAL LEADER

AND HE'S ACCESSIBLE.

HE LISTENS TO WHAT YOU SAY.

>> AND WHAT ARE YOU TELLING HIM

ABOUT WHAT NEEDS TO BE DONE?

>> WELL, WE HAD A NICE MEETING

ABOUT THREE WEEKS AGO FOR AN

HOUR, AND WHAT I TELL HIM STAYS

WITH ME.

>> [ LAUGHS ] OKAY.

FAIR ENOUGH.

>> BUT I'M NOT SHY.

>> THEY CAN INFLUENCE THE

WRITING OF LAWS, THE

IMPLEMENTATION OF REGULATION,

THE DEGREE TO WHICH THE TAX CODE

TILTS TOWARDS BUSINESS AND THOSE

AT THE TOP VERSUS ORDINARY

WORKING AMERICANS.

>> Narrator: A PERFECT EXAMPLE

OF THE INFLUENCE THAT A SMALL

GROUP OF BILLIONAIRES CAN HAVE

ON THE GOVERNMENT IS SOMETHING

IN THE TAX CODE CALLED THE

CARRIED INTEREST PROVISION.

IT ALLOWS HEDGE FUND AND

PRIVATE EQUITY MANAGERS LIKE

STEVE SCHWARZMAN TO PAY A 15%

TAX RATE ON THEIR INCOME EVEN

THOUGH, UNLIKE NORMAL CAPITAL

GAINS, THEY'RE NOT REQUIRED

TO RISK THEIR OWN MONEY.

>> WHEN IT'S EXPLAINED TO

PEOPLE, THEY THINK IT'S CRAZY.

THE MOST HIGHLY PAID FINANCIAL

EXECUTIVES GET TAXED AT A RATE

LOWER THAN YOUR MOM-AND-POP

GROCERY.

IT IS IN THE TAX CODE BECAUSE

OF THE INCREDIBLY EFFECTIVE

LOBBYING OF THE FINANCIAL

INDUSTRY.

>> OKAY, IT WAS A QUESTION ABOUT

CARRIED INTEREST BEING TAXED

AT A LOWER RATE.

WE SORT OF LOOK AT THIS AS SORT

OF AN ISSUE THAT'S NOW IN THE

POLITICAL WORLD, AND, YOU KNOW,

IT WILL BE SOLVED IN THAT WORLD.

WE DON'T HAVE MUCH OF A SAY IN

THAT.

>> SCHWARZMAN WENT TO

CAPITOL HILL YESTERDAY AND STOOD

OUTSIDE THE SENATE CHAMBER

LOBBYING SENATORS.

SCHWARZMAN WAS THERE TO FIGHT

AGAINST HIGHER TAXES ON

SO-CALLED CARRIED INTEREST.

>> FROM 2006 ON, EVERY

DEMOCRATIC LEADER AND PRESIDENT,

IN THE CASE OF PRESIDENT OBAMA,

HAS SAID, "WE'RE GONNA GET RID

OF THIS."

>> LET'S ASK HEDGE FUND MANAGERS

TO STOP PAYING TAXES THAT ARE

LOWER ON THEIR RATES THAN THEIR

SECRETARIES.

>> AND THEN MAGICALLY IT MANAGES

TO SURVIVE.

BEFORE YOU KNOW IT, THE

CONGRESSIONAL SESSION HAS ENDED,

AND, OH, MY GOD, WE RAN OUT OF

TIME.

WE DIDN'T GET TO IT.

WE'LL DO IT NEXT TIME.

>> IT APPEARS THE DEMOCRATS HAVE

COMPLETED THEIR TAKEOVER OF

CAPITOL HILL.

>> Narrator: EVEN WHEN THE

DEMOCRATS CONTROLLED BOTH HOUSES

OF CONGRESS, THEY COULDN'T CLOSE

THE CARRIED INTEREST LOOPHOLE.

THE QUESTION IS WHY?

>> IT PASSED THE HOUSE TWICE,

BUT IN THE SENATE, THE

HEDGE FUNDS HAD A PAL IN

CHARLES SCHUMER OF NEW YORK,

THE SENATOR FROM WALL STREET

AS HE WAS KNOWN FOR MANY YEARS.

>> Narrator: CHARLES SCHUMER

IS ONE OF THE MOST POWERFUL

SENATORS IN THE COUNTRY AND HAS

RAISED MORE CAMPAIGN MONEY FROM

THE FINANCIAL INDUSTRY THAN ANY

OTHER DEMOCRAT CURRENTLY SERVING

IN CONGRESS.

>> SCHUMER BECAME FAMOUS FOR

HIS ABILITY TO GAIN WALL STREET

DOLLARS.

THAT'S WHY HE WAS ELEVATED

WITHIN THE DEMOCRATIC LEADERSHIP

IS BECAUSE HE WAS SUCH AN

EFFECTIVE FUNDRAISER.

>> SCHUMER IN THAT PERIOD WAS

THE CHAIRMAN OF THE SENATE

DEMOCRATIC CAMPAIGN COMMITTEE,

WHICH YOU GOT TO GIVE THE GUY

CREDIT.

HE TURNED THIS INTO AN ABSOLUTE

MONEY MACHINE.

>> Narrator: SCHUMER HELPED

THE DEMOCRATIC PARTY RAISE

RECORD AMOUNTS FROM WALL STREET,

AND IN JUNE 2007, AS THE SENATE

WAS CONSIDERING LEGISLATION TO

CLOSE THE CARRIED INTEREST

LOOPHOLE, SCHUMER WENT ON

A FUNDRAISING FRENZY.

IN THAT ONE MONTH, HE RAISED

MORE THAN $1 MILLION FROM

HEDGE FUNDS AND PRIVATE EQUITY

FIRMS LIKE BLACKSTONE.

THE CARRIED INTEREST BILL NEVER

SAW THE LIGHT OF DAY.

>> SCHUMER JUST BURIED THE IDEA.

IT NEVER CAME UP FOR A VOTE IN

A COMMITTEE OR ON THE FLOOR

OF THE SENATE.

IT JUST DISAPPEARED.

>> WELL, I BELIEVE THAT INCOME

EQUALITY, JOBS, THE ECONOMY HAS

BEEN THE ISSUE FOR A LONG TIME.

>> SCHUMER CONSISTENTLY SAYS,

"OH, I DON'T THINK THIS IS

A GOOD PROVISION.

WE NEED TO CHANGE IT."

>> ARE YOU WILLING TO VOTE TO

GET RID OF THE CARRIED INTEREST

PROVISION WHICH ALLOWS PEOPLE

LIKE MITT TO MAKE THAT KIND

OF TAX BREAK?

>> YES.

>> "BUT WE NEED TO MAKE SURE

THAT EVERY POSSIBLE GROUP THAT

MIGHT GET A SIMILAR KIND OF

PREFERENTIAL TAX TREATMENT

IS ALSO DEALT WITH."

>> BUT ANY CARRIED INTEREST,

WHETHER IT'S VENTURE CAPITAL OR

OIL AND GAS OR ANYTHING ELSE...

>> HE'S BASICALLY SAYING,

YOU KNOW, "WE NEED TO OVERHAUL

THE WHOLE TAX CODE," WHICH,

OF COURSE GUARANTEES THAT YOU'LL

NEVER REACH AGREEMENT.

>> EVERY SENATOR PAYS ATTENTION

TO THE INDUSTRIES WITH BIG

FOOTPRINTS IN THEIR STATES,

AS THEY SHOULD.

>> Narrator: IN DEFENDING THIS

LOOPHOLE, SENATOR SCHUMER OFTEN

SAYS HE'S MERELY REPRESENTING

HIS CONSTITUENTS, THE BANKERS.

BUT WHAT ABOUT HIS OTHER

CONSTITUENTS -- POLICE OFFICERS,

NURSES, FIREMEN?

THEY HELP TO SAVE THE LIVES

OF NEW YORKERS, INCLUDING

HEDGE FUND MANAGERS, YET THE

SENATOR FROM NEW YORK DOESN'T

THINK IT'S UNFAIR THAT A VETERAN

FIREMAN CAN PAY NEARLY DOUBLE

THE TAX RATE OF A HEDGE FUND

BILLIONAIRE.

>> CHUCK SCHUMER IS THINKING,

"I NEED TO MAKE SURE THAT I

REPRESENT THESE DEEP-POCKETED

WALL STREET INTERESTS IF I WANT

MY PARTY AND ME TO BE

SUCCESSFUL," AND THAT, I THINK,

IS A PERFECT EXAMPLE OF THE WAY

IN WHICH MONEY TALKS IN AMERICAN

POLITICS TODAY.

>> Narrator: AND NOBODY'S MONEY

TALKS LOUDER THAN DAVID KOCH.

THIS RIGHT-WING OIL TYCOON WITH

A FORTUNE OF $25 BILLION IS

THE RICHEST RESIDENT OF

740 PARK AVENUE.

DAVID AND HIS BROTHER CHARLES

RUN KOCH INDUSTRIES, ONE OF THE

LARGEST PRIVATELY OWNED

COMPANIES IN THE WORLD.

THEY MAKE THINGS LIKE

DIXIE CUPS, BRAWNY PAPER TOWELS,

LYCRA, AND STAINMASTER CARPET.

BUT THEIR MOST PROFITABLE

BUSINESS IS OIL AND GAS, WHICH

HELPS KOCH INDUSTRIES BRING IN

OVER $100 BILLION IN ANNUAL

REVENUES.

TOGETHER THE KOCH BROTHERS

MAY HAVE SPENT MORE MONEY TO

INFLUENCE AMERICAN POLITICS THAN

ANYONE ELSE IN THE COUNTRY.

>> THEY BASICALLY ARE

UNPRECEDENTED.

THEY INFLUENCE AMERICAN POLITICS

ON A COMPLETELY DIFFERENT

DIMENSION THAN ANYBODY ELSE.

>> * THE MINUTE YOU WALKED

IN THE JOINT *

* I COULD SEE YOU WERE A MAN

OF DISTINCTION *

* A REAL BIG SPENDER *

>> MILLIONS OF DOLLARS TO

REPUBLICAN POLITICIANS.

>> MORE THAN $50 MILLION,

FOR EXAMPLE, TO LOBBY IN

WASHINGTON SINCE 2006.

>> * GOOD-LOOKING *

* SO REFINED *

* SAY, WOULDN'T YOU LIKE TO KNOW

WHAT'S GOING ON IN MY MIND? *

>> AS MUCH AS $200 MILLION OF

THEIR OWN MONEY THIS YEAR TO

HELP DEFEAT PRESIDENT OBAMA.

>> * HEY, BIG SPENDER *

* SPEND *

* A LITTLE TIME WITH ME *

>> THEY ARE JUST, YOU KNOW, AN

INCREDIBLE DYNASTY STORY IN

AMERICA.

IN 1927, THE FATHER, FRED KOCH,

CAME UP WITH SOME METHOD FOR

REFINING OIL THAT WAS BETTER

THAN THE METHOD THAT WAS BEING

USED.

THE MAJOR OIL COMPANIES

SUPPOSEDLY BLOCKED HIM BECAUSE

THEY HAD A MONOPOLY ON THEIR OWN

PROCESS, AND SO HE TOOK HIS

METHOD TO RUSSIA.

>> * GLORY *

>> AND HE BASICALLY SET UP

THE OIL BUSINESS FOR THE

SOVIET UNION.

HE BECAME A VIRULENT

ANTICOMMUNIST.

HE CAME BACK TO AMERICA, HAVING

SEEN THE HORRORS OF STALIN,

AND HE BEGAN TO SEE THE

UNITED STATES GOVERNMENT,

PARTICULARLY ANYTHING

PROGRESSIVE IN THE UNITED STATES

GOVERNMENT, AS THE BEGINNING

OF SOME SORT OF SOCIALIST AND

COMMUNIST TAKEOVER.

SO THAT'S THE MILIEU IN WHICH

THE KOCH BROTHERS GREW UP, AND

THEY WERE TAUGHT FROM A VERY

EARLY AGE BIG GOVERNMENT IS

BAD.

IN 1980, DAVID KOCH ACTUALLY RAN

FOR VICE PRESIDENT ON THE

LIBERTARIAN TICKET.

>> THEY COUNT ON GROWING

SYMPATHY FOR THEIR PARTY'S

SINGLE GOAL -- FREEDOM FROM

GOVERNMENT.

>> HE DID ABYSMALLY.

THE LIBERTARIAN TICKET GOT

1% OF THE VOTE IN AMERICA

IN 1980.

WHAT THEY LEARNED FROM THAT

IS THEY HAD TO FIGURE OUT

ANOTHER WAY TO GET THEIR IDEAS

TO BECOME INFLUENTIAL.

>> Narrator: SO THE KOCHS

DECIDED TO USE THEIR MONEY

TO ADVANCE THEIR AGENDA.

THEY GAVE GENEROUSLY TO

POLITICAL CANDIDATES, BUT, MORE

IMPORTANTLY, THEY INVESTED

HEAVILY IN GROUPS THAT COULD

BRING THEIR ANTIGOVERNMENT IDEAS

INTO THE MAINSTREAM.

THE BROTHERS GAVE MILLIONS TO

RIGHT-WING THINK TANKS, AND

CHARLES EVEN FOUNDED ONE, THE

LIBERTARIAN CATO INSTITUTE.

>> GOVERNMENT'S TOO BIG, AND

IT'S GETTING BIGGER, AND WE

DON'T WANT TO ENCOURAGE BIGGER

GOVERNMENT.

TAKE THE KEYS TO THE LIQUOR

CABINET AWAY FROM THE

ALCOHOLICS.

>> Narrator: THE KOCHS ALSO

WROTE OUT ENORMOUS CHECKS TO

UNIVERSITIES TO SUPPORT PROGRAMS

THAT WOULD PROMOTE DEREGULATION

AND FREE-MARKET ECONOMICS.

>> THEIR FREE-MARKET IDEOLOGY,

THEY ARGUE, IS JUST ABOUT

PRINCIPLE, BUT THERE ARE MANY,

MANY AREAS IN WHICH THEIR

BUSINESS INTERESTS BUTT INTO

REGULATIONS.

>> Narrator: ENVIRONMENTAL

REGULATIONS HAVE BEEN ESPECIALLY

BAD FOR THE KOCHS' BOTTOM LINE,

AND THEY'VE BEEN SLAPPED WITH

NUMEROUS FINES FROM THE

ENVIRONMENTAL PROTECTION AGENCY.

>> WE ARE TALKING ABOUT MILLIONS

OF GALLONS OF CRUDE OIL BEING

RELEASED INTO THE ENVIRONMENT.

>> Narrator: IN 2000,

KOCH INDUSTRIES HAD TO PAY

A $30-MILLION FINE FOR ITS ROLE

IN OVER 300 OIL SPILLS.

AT THE TIME, IT WAS THE LARGEST

CIVIL PENALTY IN THE E.P.A.'s

HISTORY.

>> WHEN YOU MAKE BUSINESSES LESS

COMPETITIVE BECAUSE THEY'RE

HAVING TO DEAL WITH REGULATIONS

FROM THE

ENVIRONMENTAL PROJECTION AGENCY

AND OTHER UNELECTED

BUREAUCRACIES, INSTEAD OF

CREATING JOBS AND INSTEAD OF

BEING ABLE TO COMPETE WITH OUR

FOREIGN COMPETITORS, WE KNOW IT

KILLS JOBS.

>> Narrator: THIS IS

TIM PHILLIPS, THE HEAD

OF THE KOCH BROTHERS'

LATEST VENTURE,

AMERICANS FOR PROSPERITY.

>> WE'RE GENUINELY FIGHTING

TO PRESERVE AND EXPAND ECONOMIC

FREEDOM, WHICH WE BELIEVE IS

THE BEST WAY TO GIVE FOLKS FROM

EVERY WALK OF LIFE PROSPERITY

AND A SHOT AT A BETTER LIFE.

>> Narrator: THROUGH

AMERICANS FOR PROSPERITY,

THE KOCHS HAVE PROVIDED

TREMENDOUS FINANCIAL BACKING

TO THE TEA PARTY MOVEMENT BY

ORGANIZING RALLIES AND PROTESTS,

FLYING IN BIG-NAME GUEST

SPEAKERS...

>> DON'T TAX US ANYMORE!

>> Narrator: ...AND FLOODING

THE AIRWAVES WITH ADVERTISING.

>> PEOPLE WERE LOOKING AT THE

TEA PARTY MOVEMENT AS THIS SORT

OF SPONTANEOUS COMBUSTION AND

THIS GRASSROOTS THING THAT JUST

EXPLODED, AND WHAT IT REALLY

WAS, WAS SOMETHING THAT WAS

BEING FED BY LIBERTARIAN

BILLIONAIRES.

>> WE WANT THE MAXIMUM FREEDOM

TO LAUNCH BUSINESSES, CREATE

OPPORTUNITY, AND EXPAND

PROSPERITY.

WE DESIRE A TAX CODE THAT DOES

NOT PUNISH HARD WORK OR CRUSH

THE ENTREPRENEURIAL SPIRIT THAT

MAKES AMERICA UNIQUE IN THE

WORLD.

>> THEY HAVE THIS IDEOLOGY

OF THE FREE MARKET AND HOW

MAKING MONEY EQUALS FREEDOM,

AND IF YOU LISTEN TO THE

TEA PARTY RHETORIC, YOU HEAR

EXACTLY THE SAME PHRASES.

>> OUR SIDE, THE SIDE YOU'RE ON

TODAY IS THE SIDE, FRANKLY, OF

FREEDOM.

>> YEAH!

[ CHEERS AND APPLAUSE ]

>> THEY'RE CHANTING "LIBERTY"

AND CHANTING "NO MORE TAXES."

>> FREEDOM, LIBERTY, AND PEOPLE

WAKING UP TO THE FACT THAT THIS

IS OUR COUNTRY, AND IT'S UP TO

US TO TAKE IT BACK.

>> OUR RIGHTS ARE BEING TAKEN

AWAY LITTLE BY LITTLE.

>> Narrator: BUT WHAT KIND

OF FREEDOM IS

AMERICANS FOR PROSPERITY

TALKING ABOUT?

IS IT FREEDOM FOR EVERYONE OR

JUST FOR BILLIONAIRES WHO WANT

FREEDOM FROM TAXES, THE FREEDOM

TO POLLUTE, AND FREEDOM FROM ANY

RESPONSIBILITY TO THE REST OF

SOCIETY.

TO ANSWER THAT QUESTION, JUST GO

TO ONE OF THEIR RALLIES WHERE

YOU'RE LIKELY TO SEE SIGNS

PROMOTING A ONCE DISCREDITED

PHILOSOPHER AND NOVELIST, WHO'S

RECENTLY FOUND A NEW AUDIENCE.

>> HERE IN THE UNITED STATES,

PERHAPS THE MOST CHALLENGING AND

UNUSUAL NEW PHILOSOPHY HAS BEEN

FORGED BY A NOVELIST AYN RAND.

MISS RAND'S POINT OF VIEW IS

STILL COMPARATIVELY UNKNOWN

IN AMERICA, BUT IF IT EVER DID

TAKE HOLD, IT WOULD

REVOLUTIONIZE OUR LIVES.

>> I'M OPPOSED TO ALL FORMS OF

CONTROL.

I AM FOR AN ABSOLUTE

LAISSEZ-FAIRE, FREE, UNREGULATED

ECONOMY.

>> AYN RAND WROTE A SERIES OF

NOVELS THAT HAD BECOME A KIND

OF TOUCHSTONE FOR CONTEMPORARY

REPUBLICAN POLITICIANS, MOST

NOTABLY "ATLAS SHRUGGED."

>> THERE'S ATLAS.

HE HOLDS THE WORLD ON HIS

SHOULDERS.

WHAT IF ATLAS SHRUGGED?

>> PICTURE THIS.

AN ANTI-UTOPIA SOCIETY THAT

COLLAPSES UNDER GOVERNMENT

CONTROL.

DOES THAT SOUND FAMILIAR?

IT SHOULD.

IT'S AYN RAND'S STORY OF

"ATLAS SHRUGGED," AND NOW IT'S

A MOVIE, ONE VERY POPULAR WITH

TEA PARTY MEMBERS.

>> Narrator: "ATLAS SHRUGGED"

IS ABOUT AN AMERICA WHERE

BUSINESSES ARE REGULATED,

THE RICH PAY TAXES, AND THE

GOVERNMENT TRIES TO HELP THE

MIDDLE CLASS AND THE POOR.

IN OTHER WORDS, A DOOMSDAY

SCENARIO.

>> VIOLENCE AND CRIME ARE

SKYROCKETING.

>> Narrator: IN RAND'S WORLD,

ANYONE WHO NEEDS A LITTLE HELP

IN LIFE IS A MOOCHER OR A

PARASITE, AND ANYONE WHO WANTS

TO HELP OTHERS IS A VILLAIN.

HER HEROES ARE PROUD TO BE

AS SELFISH AS POSSIBLE.

>> YOU REALLY DON'T CARE ABOUT

HELPING THE UNDERPRIVILEGED,

DO YOU?

>> NO, PHILLIP, I DON'T.

>> THERE ARE STATEMENTS BY

JOHN GALT, THE CHARACTER IN

"ATLAS SHRUGGED," THAT IF YOU

SO MUCH AS SMILE AT THE POOR

PERSON, IF YOU GIVE HIM PENNIES,

YOU PUT THE WORLD ON A PATH OF

DESTRUCTION.

>> Narrator: FINALLY, THE

C.E.O.s OF AMERICA GET SICK

AND TIRED OF LIVING UNDER

A GOVERNMENT THAT NO LONGER

CATERS TO THEM, AND THEY DECIDE

TO GO ON STRIKE.

>> WHAT ARE YOU SELLING, PAL?

>> NOTHING.

I'M SIMPLY OFFERING A SOCIETY

THAT CULTIVATES INDIVIDUAL

ACHIEVEMENT.

>> Narrator: THEY HEAD OFF INTO

THE MOUNTAINS AND START A NEW

SOCIETY, ONE WHERE THERE IS

NO GOVERNMENT.

"ATLAS SHRUGGED" IS TOLD AS

A HORROR STORY, A NIGHTMARISH

VISION OF WHAT WOULD HAPPEN

TO OUR COUNTRY IF WEALTHY

AMERICANS LIKE DAVID KOCH AND

STEVE SCHWARZMAN JUST LEFT US

TO FEND FOR OURSELVES.

>> NOOOOOO!

>> YEAH, WE SUPPORT IT.

WE HAD SCREENINGS AROUND THE

COUNTRY, AND WE LIKE THAT STORY

TO BE OUT THERE, AND WE LIKE

THE IDEAS TO BE OUT THERE, AND

WE CERTAINLY BELIEVE AND SHARE

MANY OF THE PRINCIPLES AND

VALUES THAT BOOK WAS BASED ON,

THE INHERENT MORALITY OF

CAPITALISM.

>> YOU DO NOT LIKE THE ALTRUISM

BY WHICH WE LIVE.

>> WELL, SAY THAT I DON'T LIKE

IS TOO WEAK A WORD.

I CONSIDER IT EVIL.

>> THE APPEAL OF AYN RAND IS

THAT, YOU KNOW, IT'S BASICALLY

THE GORDON GEKKO MESSAGE --

"GREED IS GOOD."

THAT IDEOLOGY IS APPEALING,

I SUPPOSE, IF YOU HAVE A

TREMENDOUS AMOUNT OF MONEY.

YOU MIGHT FEEL GUILTY,

OTHERWISE.

>> HOW DOES YOUR PHILOSOPHY

TRANSLATE ITSELF INTO THE WORLD

OF POLITICS?

>> WE BELIEVE THAT AMERICA

DESERVES A CHOICE OF TWO

FUTURES.

WE BELIEVE...

>> Narrator: PAUL RYAN RECEIVES

MORE MONEY FROM THE KOCH

BROTHERS THAN ANY OTHER MEMBER

OF CONGRESS.

HE IS ALSO THE COUNTRY'S MOST

POWERFUL POLITICIAN TO PUBLICLY

EMBRACE THE PHILOSOPHY OF

AYN RAND.

BY RUNNING ON HIS ANTIGOVERNMENT

VIEWS, THIS REPUBLICAN FROM

WISCONSIN BECAME A TEA PARTY

FAVORITE, A POWERFUL MEMBER

OF CONGRESS, AND A CANDIDATE

FOR HIGH OFFICE.

>> JOIN ME IN WELCOMING THE NEXT

PRESIDENT OF THE UNITED STATES,

PAUL RYAN.

VICE PRESIDENT OF THE

UNITED STATES.

[ LAUGHS ]

>> WE WILL RESTORE THE GREATNESS

OF THIS COUNTRY.

IT IS OUR DUTY TO SAVE THE

AMERICAN DREAM FOR OUR CHILDREN.

WHAT KIND OF PEOPLE DO WE WANT

TO BE?

>> Narrator: WITH HIS RISE TO

PROMINENCE, RYAN HAS DENIED HIS

AFFECTION FOR AYN RAND, BUT

HISTORY TELLS A DIFFERENT STORY.

>> I JUST WANT TO SPEAK TO YOU

A LITTLE BIT ABOUT AYN RAND AND

WHAT SHE MEANT TO ME IN MY LIFE

AND THE FIGHT WE'RE ENGAGED HERE

IN CONGRESS.

I GREW UP READING AYN RAND, AND

IT TAUGHT ME QUITE A BIT ABOUT

WHO I AM AND WHAT MY VALUE

SYSTEMS ARE AND WHAT MY BELIEFS

ARE.

THE REASON I GOT INVOLVED IN

PUBLIC SERVICE, BY AND LARGE,

IF I HAD TO CREDIT ONE THINKER,

ONE PERSON, IT WOULD BE

AYN RAND.

>> YOU BELIEVE THAT THERE SHOULD

BE NO RIGHT BY THE GOVERNMENT TO

TAX.

YOU BELIEVE THAT THERE SHOULD BE

NO SUCH THING AS WELFARE

LEGISLATION, UNEMPLOYMENT

COMPENSATION.

>> IT'S INSPIRED ME SO MUCH THAT

IT'S REQUIRED READING IN MY

OFFICE FOR ALL MY INTERNS AND

MY STAFF.

WE START WITH "ATLAS SHRUGGED."

>> HOW DO WE BUILD ROADS,

SANITATION FACILITIES,

HOSPITALS, SCHOOLS?

>> I BELIEVE IN PRIVATE ROADS,

PRIVATE POST OFFICES, PRIVATE

SCHOOLS.

>> IT'S SO IMPORTANT THAT WE GO

BACK TO OUR ROOTS TO LOOK AT

AYN RAND'S VISION, HER WRITINGS

TO SEE WHAT OUR GIRDING,

UNDERGROUNDING PRINCIPLES ARE.

WE HAVE TO GO BACK TO AYN RAND.

OUR PLAN TAKES POWER AWAY FROM

WASHINGTON AND GIVES IT BACK

TO THE INDIVIDUAL.

>> Narrator: WHILE IN CONGRESS,

RYAN PUT AYN RAND'S PHILOSOPHY

INTO PRACTICE THROUGH A PLAN

HE CALLED

"THE PATH TO PROSPERITY."

IT WAS A BUDGET PROPOSAL THAT

WOULD DRAMATICALLY CUT

GOVERNMENT PROGRAMS TO THE POOR

WHILE HANDING OUT AN EVEN BIGGER

TAX CUT FOR THE RICH.

>> I THINK THAT

"THE PATH TO PROSPERITY"

THAT CHAIRMAN RYAN AND HIS

COMMITTEE HAVE PUT TOGETHER

IS A BLUEPRINT FOR AMERICA'S

FUTURE.

>> Narrator: "THE PATH TO

PROSPERITY" PASSED THE HOUSE

OF REPRESENTATIVES IN MARCH

OF 2012.

IT NOW APPEARS TO BE AT THE

HEART OF THE ECONOMIC PHILOSOPHY

OF THE REPUBLICAN PARTY.

>> MITT ROMNEY AND I WILL TAKE

THE RIGHT STEPS IN THE RIGHT

TIME TO GET US BACK ON THE RIGHT

TRACK.

>> WHAT DO YOU THINK OF RYAN'S

BUDGET FRAMEWORK?

>> OH, I THINK IT'S RIDICULOUS

ON THE FACE OF IT.

HE'S PROPOSING A $10-TRILLION

TAX CUT AS PART OF HIS

DEFICIT-REDUCTION PLAN, AND

OBVIOUSLY IF YOU'RE GONNA CUT

TAXES BY $10 TRILLION, YOU'VE

GOT TO CUT SPENDING BY EVEN MORE

THAN $10 TRILLION.

EVERY PROGRAM YOU CAN POSSIBLY

THINK OF FROM ROADS TO EDUCATION

TO ENERGY WOULD BE MORE OR LESS

ABOLISHED IF YOU'RE GONNA TAKE

SERIOUSLY THE NUMBERS THAT HE

HAS PUT FORWARD.

>> THE IDEA THAT THERE'S

LEGITIMATE ECONOMICS BEHIND THIS

IS ABSURD.

CONSERVATIVES THROUGHOUT THE

AGES HAVE NEVER SPOKEN LIKE

PAUL RYAN.

MILTON FRIEDMAN TALKED ABOUT

NEGATIVE INCOME TAX AND

GUARANTEED INCOMES FOR THE POOR.

FRIEDRICH HAYEK, WHO WAS ONE

OF THE ACMES OF FREE-MARKET

ECONOMICS, TALKED ABOUT THE NEED

OF SOCIETIES TO GUARANTEE

MINIMUM STANDARDS AND PROVIDE

HEALTHCARE.

>> SO THERE'S CLEARLY AN

IDEOLOGY INVOLVED HERE.

THEY ACTUALLY WANT TO USE TAX

POLICY TO EVISCERATE GOVERNMENT

PROGRAMS.

>> IF WE TRY TO GO DOWN THE PATH

WHERE WE PUT THE GOVERNMENT IN

THE PLACE TO EQUALIZE THE

RESULTS OF PEOPLE'S LIVES, WHERE

WE TRY TO EQUALIZE OUTCOMES,

WE'LL ALL BE MORE EQUALLY

MISERABLE.

[ LIGHT LAUGHTER ]

RATHER LET'S FOCUS ON EQUALITY

OF OPPORTUNITY.

>> MY MOM USED TO SAY TO ME,

"SON, IT DON'T MATTER WHERE YOU

BEGAN.

WHAT MATTERS IS WHERE YOU END.

YOU LIVE IN THE UNITED STATES

OF AMERICA," AND THAT'S

SOMETHING THAT I THINK IS AN

INHERENTLY MORAL THING ABOUT

AMERICA.

IT GIVES YOU A CHANCE TO MAKE

IT.

>> MUCH OF WHAT THEY SAY IS

ABOUT PROVIDING OPPORTUNITY

TO MAKE MONEY TO EVERYBODY

EQUALLY.

THAT'S WHAT THEY WOULD ARGUE

ABOUT, AND IT DOESN'T SEEM TO

ACCEPT THE POSSIBILITY THAT IF

YOU'RE POOR ENOUGH AND YOUR

SCHOOLING IS BAD ENOUGH THAT YOU

DON'T REALLY HAVE AN OPPORTUNITY

TO COMPETE.

[ INDISTINCT CONVERSATIONS ]

>> Narrator: ALMOST EVERYONE

AGREES THAT EDUCATION IS THE KEY

TO UPWARD MOBILITY.

FOR PEOPLE STARTING AT THE

BOTTOM OF THE LADDER, A COLLEGE

DEGREE CAN QUADRUPLE THEIR

CHANCES OF MAKING IT TO THE TOP.

BUT COLLEGE IS INCREASINGLY OUT

OF REACH.

THE COST HAS GONE UP OVER 500%

SINCE 1980.

MEANWHILE, WITHOUT A COLLEGE

DEGREE, IT'S HARDER THAN EVER

TO GET A JOB.

IF YOU ONLY HAVE A HIGH-SCHOOL

DIPLOMA, THERE'S A 7-IN-10

CHANCE THAT YOU DON'T HAVE

FULL-TIME WORK AT ALL.

IT'S A CRUEL IRONY THAT THE

U.S. ECONOMY HAS A DESPERATE

NEED FOR SKILLED LABOR IN

MANUFACTURING, HIGH-TECH,

AND HEALTH INDUSTRIES.

BUT THERE AREN'T ENOUGH

QUALIFIED WORKERS TO FILL THOSE

JOBS.

EVEN WITH 12 MILLION AMERICANS

UNABLE TO FIND WORK, TRAINING

AND EDUCATION PROGRAMS ARE BEING

SLASHED BY BOTH PARTIES IN FAVOR

OF TAX CUTS FOR THE RICH.

>> I FIND IT HARD TO BE AN

OPTIMIST RIGHT NOW FOR PEOPLE

WHOM I CARE ABOUT AND PEOPLE

WHO THE POVERTY INSTITUTE CARES

ABOUT, PEOPLE WHO WANT TO

SUPPORT THEIR FAMILIES THROUGH

WORK AND CAN'T.

>> Narrator: TODAY ONE IN SEVEN

AMERICANS RECEIVES FOOD STAMPS.

MORE THAN HALF OF THOSE PEOPLE

ARE CHILDREN AND ELDERLY.

41% OF RECIPIENTS LIVE IN

WORKING HOUSEHOLDS.

A JOB IS NO LONGER ENOUGH TO

KEEP AMERICANS OUT OF POVERTY.

>> FOR THE PEOPLE THAT THINK,

"OKAY, THEY DON'T NEED ANYTHING.

THEY DON'T NEED A HANDOUT.

THEY SHOULD JUST GO GET A JOB."

YES, AS SOON AS THEY CREATE JOBS

FOR PEOPLE TO GET THEM, THEN

GREAT.

I'M PRETTY SURE THEY'LL BE

THERE.

THERE'S NOTHING.

SO WHAT DO YOU DO WHEN THERE'S

NOTHING?

THAT'S WHERE THE SAFETY NET

COMES IN.

>> Narrator: BUT IT'S NOT JUST

THE POOR WHO ARE STRUGGLING IN

AMERICA.

IN PAUL RYAN'S HOME STATE OF

WISCONSIN, MANY RESIDENTS WHO

WERE ONCE MIDDLE CLASS NOW HAVE

A HARD TIME MEETING THEIR BASIC

NEEDS.

IN THE WELL-TO-DO COUNTY OF

WAUKESHA, OVER 6,000 PEOPLE

USE THIS FOOD PANTRY EVERY

MONTH.

>> WE DO HEAR A LOT FROM PEOPLE,

YOU KNOW, "WHY DO YOU NEED A

FOOD PANTRY IN WAUKESHA COUNTY?

THERE'S NO WAY THAT SHOULD BE

NECESSARY."

WE'RE SEEING MORE INDIVIDUALS

AND FAMILIES THAT HAVE HIGH

EDUCATION LEVELS AND

PROFESSIONAL TRAINING MORE SO

THAN ANY OTHER TIME IN OUR

HISTORY, PEOPLE WHO, BECAUSE

OF DIFFERENT FACTORS IN THE

ECONOMY RIGHT NOW HAVE LOST

THEIR JOB OR HAVE HAD REDUCTIONS

IN INCOME.

SO ACCESS TO FREE FOOD IS ABOUT

THE ONLY WAY THAT THEY CAN

STRETCH THEIR MONETARY

RESOURCES.

>> THE VEGETABLE WITH BEEF.

MY HUSBAND LOST HIS JOB, AND SO

WE ARE WORKING OFF ONE INCOME,

AND WE ALSO HAVE A 6-YEAR-OLD

WHO HAS A MEDICAL CONDITION,

SO IT GETS A LITTLE EXPENSIVE

WITH THAT, AS WELL.

I WOULD SAY IF WE DIDN'T HAVE

IT, WE PROBABLY WOULDN'T GET

A LOT OF THE THINGS THAT WE

NEED.

>> WHEN YOU'RE ON UNEMPLOYMENT,

YOU'RE SUPPOSED TO APPLY FOR

WORK TWO PLACES A WEEK, AND I

WAS APPLYING, LIKE, EVERY DAY.

I RAN OUT OF PLACES TO APPLY TO.

I WOULD APPLY EVEN AT

McDONALD'S.

THEY NEVER EVEN CALLED ME BACK.

I'M HOPING OUR POLITICIANS ARE

SMART ENOUGH TO KEEP THESE

PROGRAMS.

WHAT WORRIES ME IS WHEN THEY SAY

THEY WANT TO CUT GOVERNMENT

SPENDING.

I'M THINKING LOW-INCOME HOUSING

'CAUSE IT'S ALL A WASTE TO THEM,

BUT I DON'T THINK THEY REALIZE

HOW ESSENTIAL IT IS TO US.

YOU KNOW, THEY MAKE MONEY.

THEY DON'T HAVE TO WORRY ABOUT

THAT, AND 9 TIMES OUT OF 10,

THEY'VE COME FROM WEALTHY

BACKGROUNDS.

THEY HAVE NO CLUE WHAT IT'S LIKE

TO BE THIS, AND UNTIL YOU BEEN

THERE, IT'S A WHOLE DIFFERENT

BALL GAME.

>> WHEN I WAS WORKING THE CORNER

GRILL AT McDONALD'S ON THE

INTERSTATE IN JANESVILLE AS

A KID, WHEN I WAS DETASSLING

CORN, WHEN I WAITED TABLES

TO PAY BACK MY STUDENT LOANS,

I DIDN'T THINK OF MYSELF AS

STUCK IN SOME CLASS.

I THOUGHT OF MYSELF ON THE WAY

TO OPPORTUNITY.

THAT'S WHAT THIS COUNTRY'S ALL

ABOUT.

[ CHEERS AND APPLAUSE ]

>> Narrator: YET PAUL RYAN'S

BUDGET PROPOSAL WOULD CUT

THE FOOD-STAMP PROGRAM BY

$134 BILLION OVER THE NEXT

10 YEARS, WHICH COULD SHRED

THE SAFETY NET FOR 8 MILLION

PEOPLE.

>> [ LAUGHS ]

>> I APPRECIATE IT.

I'VE GOT SOME BIBLES.

THANK YOU VERY MUCH.

[ ENGINE TURNS OVER ]

>> Narrator: IN APRIL 2012,

THE U.S. CONFERENCE OF

CATHOLIC BISHOPS URGED CONGRESS

TO PROTECT FOOD STAMPS.

BISHOPS SUGGESTED THAT IF

SPENDING CUTS WERE NECESSARY,

THEY SHOULD BE MADE TO

GOVERNMENT SUBSIDIES FOR RICH

AGRICULTURAL COMPANIES INSTEAD

OF TAKING FOOD FROM HUNGRY

CHILDREN, POOR FAMILIES,

AND VULNERABLE SENIORS.

>> OUR NATION IS APPROACHING

A TIPPING POINT.

WE'RE AT A MOMENT WHERE IF

GOVERNMENT'S GROWTH IS LEFT

UNCHECKED AND UNCHALLENGED,

AMERICA'S BEST CENTURY WILL BE

CONSIDERED OUR PAST CENTURY.

THIS IS A FUTURE IN WHICH WE

WILL TRANSFORM OUR SOCIAL

SAFETY NET INTO A HAMMOCK.

>> YOU CAN PAUL RYAN TALK ABOUT

HIS HAMMOCK.

THIS HAMMOCK -- THE AVERAGE

BENEFIT IN WISCONSIN WAS $246

A MONTH LAST YEAR FOR TWO

PEOPLE, ABOUT $350 FOR FOUR.

IS THAT ENOUGH FOR YOU TO SAY,

"AH, PUT MY FEET UP ON A

HAMMOCK.

YOU KNOW, I GOT THESE FOOD

STAMPS."

FEEDING PEOPLE IS SOMETHING THAT

THIS COUNTRY CAN AFFORD TO DO

AND SHOULD BE ABLE TO DO.

THAT'S NOT A HAMMOCK.

>> AND IF YOU TRY TO RAISE OUR

TAXES AND TRAMPLE ON OUR

LIBERTIES, WE'RE EITHER GOING TO

BEAT YOU OR MAKE YOUR LIFE

MISERABLE!

[ CHEERS AND APPLAUSE ]

>> THE GOVERNMENT HAS BEEN

STARVED OF FUNDS.

WE'RE AT ABOUT THE LOWEST TAX

COLLECTION AS A SHARED NATIONAL

INCOME IN OUR MODERN HISTORY.

WE CAN'T EVEN PAY FOR THE MOST

BASIC PUBLIC SERVICES RIGHT NOW.

WE CAN'T KEEP OUR SCHOOLS

FUNCTIONING, WE CAN'T KEEP OUR

ROADS INTACT.

TAXES ARE THE PRICE YOU PAY FOR

CIVILIZATION, AND IF YOU DON'T

PAY TAXES, YOU DON'T GET

CIVILIZATION.

IT'S AS SIMPLE AS THAT.

>> Narrator: BY THAT MEASURE,

OUR CIVILIZATION IS IN TROUBLE.

>> GENERAL ELECTRIC MADE

$5 BILLION IN U.S. PROFITS LAST

YEAR, BUT CLAIMED A $3.3-BILLION

TAX CREDIT.

>> Narrator: THESE DAYS, SOME OF

THE NATION'S MOST PROFITABLE

COMPANIES ARE PAYING LITTLE OR

NO TAXES AT ALL.

THANKS TO TAX BREAKS, LOOPHOLES,

AND CLEVER ACCOUNTING, THE

TAX RATE CORPORATIONS ACTUALLY

PAY IS AT AN ALL-TIME LOW.

THE SAME THING IS TRUE FOR

PERSONAL INCOME TAXES,

ESPECIALLY FOR THE ULTRA RICH.

TAX RATES FOR MILLIONAIRES HAVE

DROPPED MORE THAN 25% IN THE

LAST TWO DECADES, AND FOR A

HANDFUL OF EXTREMELY WEALTHY

INDIVIDUALS AT THE TOP, TAXES

HAVE FALLEN BY ALMOST 50%.

A BIG PART OF THAT DIP IS

BECAUSE OF THE TAX CUT SIGNED

INTO LAW BY PRESIDENT

GEORGE W. BUSH.

BUSH SLASHED THE CAPITAL GAINS

RATE ON INVESTMENTS TO 15%,

NEARLY HALF WHAT THE RATE WAS

UNDER RONALD REAGAN.

BUT EVEN THOUGH THE RICH GOT

MOST OF THE BENEFITS, THE

ARGUMENT WAS THAT THESE TAX CUTS

WOULD BE GOOD FOR ALL OF US.

>> IF YOU HAVE ZERO CAPITAL

GAINS IN TERMS OF THE TAX CODE,

YOU'RE GONNA SEE BILLIONS OF

DOLLARS POUR INTO INVESTMENT,

BILLIONS OF DOLLARS OPEN UP NEW

FACTORIES, BILLIONS OF DOLLARS

INVEST IN NEW TECHNOLOGY, AND

WE'RE CERTAINLY GONNA HAVE THE

MOST DYNAMIC ECONOMY IN THE

WORLD.

[ CHEERS AND APPLAUSE ]

>> Narrator: IT'S A THEORY

AYN RAND WOULD LOVE.

YOU HAVE TO MAKE SURE THAT

THE RICH ARE HAPPY SO THEY DON'T

GO ON STRIKE.

>> WELL, THAT'S THE ARGUMENT,

BUT YOU DON'T REALLY SEE ANY

ACTUAL ECONOMIC EVIDENCE TO

PROVE THAT.

THE REPUBLICANS MADE ALL THESE

ARGUMENTS BACK IN 2003 THAT IF

WE CUT TAXES ON DIVIDENDS AND

CAPITAL GAINS AND REDUCE THE TOP

TAX RATE ON THE WEALTHY, WE'LL

GET THIS EXPLOSION OF INVESTMENT

AND GROWTH AND JOBS.

YOU CAN LOOK UP THE DATA FOR

YOURSELF, BUT I CERTAINLY DON'T

REMEMBER ANY BIG INCREASE IN

GROWTH AFTER 2003.

>> YOU KNOW, MY JOB IS,

I'M A VENTURE CAPITALIST.

WHAT I DO IS I INVEST IN SMALL,

TYPICALLY HIGH-TECHNOLOGY

COMPANIES WITH THE OBJECTIVE

OF HELPING THEM GROW AND

HOPEFULLY HAVING THEM GROW

A LOT.

>> Narrator: GARRETT GRUENER IS

A MILLIONAIRE BUSINESSMAN AND

A MEMBER OF THE

PATRIOTIC MILLIONAIRES

FOR FISCAL STRENGTH, A GROUP

THAT ADVOCATES RAISING TAXES

ON PEOPLE LIKE HIMSELF.

>> THE REPUBLICANS ARGUE THAT AS

YOU REDUCE MARGINAL TAXES, YOU

INCENT PEOPLE TO MAKE THE SORTS

OF INVESTMENT THAT I'VE MADE.

IN FACT, THAT HAS NOT BEEN MY

EXPERIENCE AT ALL.

I HAVE LITERALLY NOT ONCE EVER

LOOKED AT MARGINAL TAX RATES

AS A REASON TO MAKE OR NOT MAKE

AN INVESTMENT.

THE BUSH TAX CUTS WERE THE

PAYOFF FOR A LOT OF INVESTMENT

THAT THE WEALTHY MADE IN THE

REPUBLICAN PARTY OVER A VERY

LONG PERIOD OF TIME, AND THEY

WERE THE PRIME BENEFICIARIES

OF IT.

>> THERE WAS ESSENTIALLY NO

ECONOMIC IMPACT AT ALL EXCEPT

THAT IT INCREASED THE DEFICIT.

>> Narrator: THE BUSH TAX CUTS

HAVE ADDED OVER $2.9 TRILLION

TO THE NATIONAL DEBT.

PAUL RYAN'S PROPOSED TAX CUTS

WOULD ADD ANOTHER $4.6 TRILLION

IN DEBT OVER THE NEXT 10 YEARS.

WHAT'S HARD TO UNDERSTAND ABOUT

THIS RELENTLESS PUSH TO CUT

TAXES FOR THE RICH IS THAT THEY

ALREADY HAVE SO MUCH MORE THAN

THE REST OF US.

IN 1965, C.E.O.s MADE ABOUT

20 TIMES AS MUCH AS THE AVERAGE

WORKER.

TODAY, BY THE MOST CONSERVATIVE

ESTIMATE, THAT NUMBER IS 231.

SO WHAT'S GOING ON HERE?

ARE C.E.O.s GETTING PAID MORE

BECAUSE THEY DESERVE IT?

MEET ANOTHER RESIDENT OF

740 PARK -- JOHN THAIN,

THE HIGHEST-PAID C.E.O. IN 2007.

>> THAIN'S APARTMENT IS ACTUALLY

MY PERSONAL FAVORITE FOR IF I

COULD LIVE AT 740 PARK.

IT'S A LITTLE, TINY JEWEL-BOX

DUPLEX.

IT'S GOT FOUR EXPOSURES, AND

IT'S ON THE CENTRAL PARK SIDE

OF THE BUILDING.

>> Narrator: THAIN HAD BEEN

A SENIOR EXECUTIVE AT

GOLDMAN SACHS AND SERVED

AS C.E.O. OF THE NEW YORK

STOCK EXCHANGE BEFORE BECOMING

THE HEAD OF THE INVESTMENT BANK

MERRILL LYNCH.

IN 2008, AS LOSSES WERE SOARING

AND HIS COMPANY STOCK WAS

PLUMMETING, THAIN WAS BUSY

WITH A $1.2-MILLION OFFICE

RENOVATION.

>> YOU SPENT MORE THAN A MILLION

DOLLARS RENOVATING YOUR OFFICE.

IS THIS TRUE?

>> IT WAS MY OFFICE.

IT WAS TWO CONFERENCE ROOMS,

AND IT WAS A RECEPTION AREA,

BUT IT IS CLEAR TO ME IN TODAY'S

WORLD THAT IT WAS A MISTAKE.

I APOLOGIZED FOR SPENDING THAT

MONEY ON THOSE THINGS.

>> Narrator: WHILE THAIN WAS

BUSY PICKING CHAIRS, RUGS, AND

WASTEBASKETS, MERRILL AND THE

OTHER INVESTMENT BANKS HELP

BRING DOWN THE GLOBAL ECONOMY.

>> WALL STREET HAS BEEN TURNED

UPSIDE DOWN.

>> THE COLLAPSE OF ONE

INVESTMENT BANK, THE TAKEOVER

OF ANOTHER.

>> $29 BILLION TO HELP

JP MORGAN...

>> $85 BILLION TO BAIL OUT

THE INSURANCE GIANT A.I.G.

>> Narrator: WALL STREET WAS

RESCUED BY U.S. TAXPAYERS, NOT

ONLY THROUGH BAILOUTS, BUT ALSO

THROUGH GOVERNMENT LOANS THAT

CARRIED VIRTUALLY NO INTEREST.

>> I'M CONFIDENT THAT THIS

RESCUE PLAN, ALONG WITH OTHER

MEASURES TAKEN BY THE

TREASURY DEPARTMENT AND

THE FEDERAL RESERVE, WILL BEGIN

TO RESTORE STRENGTH AND

STABILITY TO AMERICA'S FINANCIAL

SYSTEM AND OVERALL ECONOMY.

>> Narrator: MEANWHILE, UNDER

PRESIDENTS BUSH AND OBAMA,

MILLIONS OF MIDDLE-CLASS

AMERICAN HOMEOWNERS FACING

FORECLOSURE RECEIVED ONLY A TINY

FRACTION OF THE BAILOUTS GIVEN

TO WEALTHY BANKERS.

IN THE END, MERRILL LYNCH

SUFFERED OVER $27 BILLION IN

LOSSES UNDER THAIN'S LEADERSHIP

AND WAS SOLD TO BANK OF AMERICA.

BUT THAT DIDN'T STOP THAIN FROM

HANDING OUT $3.6 BILLION IN

PERFORMANCE BONUSES TO MERRILL

EXECUTIVES.

>> THE BONUSES WERE PAID EVEN AS

MERRILL SUFFERED $15 BILLION IN

LOSSES.

>> IF YOU LIVE IN A WORLD WHERE

EVERYONE YOU KNOW IS CHASING

HUGE SUMS OF MONEY EVERY DAY,

AND THEIR MORALITY IS DETERMINED

BY WHAT IT'S NECESSARY TO DO TO

GET RICHER AND RICHER AND

RICHER, YOU'RE NOT GOING TO HAVE

THE SAME MORAL CONSTRUCTS

AFFECTING YOUR BEHAVIOR.

>> WHEN SOMEONE WAS MADE TO BE

RICH, EVEN IN A VERY BASIC GAME

OF MONOPOLY, THEY BECOME MORE

SELF-CENTERED, MORE DOMINANT,

AND LESS SENSITIVE TO HOW THEIR

BEHAVIOR IS AFFECTING THE OTHER

PERSON.

AS WEALTH BECOMES INCREASINGLY

CONCENTRATED IN THE HANDS OF

A SELECT GROUP OF INDIVIDUALS,

WE'RE SEEING THEM BECOME MORE

AND MORE INSULAR FROM THE REST

OF SOCIETY.

>> WHEN I STARTED AT 740, I WAS

LIKE, "THIS IS GREAT, YOU KNOW?

COME AROUND TO CHRISTMASTIME,

I'M GOT $1,000 FROM EACH

RESIDENT, YOU KNOW, BECAUSE

THEY ARE MULTIBILLIONAIRES."

BUT IT'S NOT THAT WAY.

THESE GUYS ARE BUSINESSMEN.

THEY KNOW WHAT THE GOING RATE

IS.

THEY'RE NOT GOING TO GIVE YOU

ANYTHING MORE THAN THAT.

THE CHEAPEST PERSON OVERALL

WAS DAVID KOCH.

WE WOULD LOAD UP HIS TRUCKS,

TWO VANS USUALLY, EVERY WEEKEND

FOR THE HAMPTONS -- YOU KNOW,

I MEAN MULTIPLE TRIPS, MULTIPLE

GUYS IN AND OUT, IN AND OUT,

HEAVY BAGS.

WE WOULD NEVER GET A TIP FROM

MR. KOCH.

WE WOULD NEVER GET A SMILE FROM

MR. KOCH -- $50 CHECK FOR

CHRISTMAS.

>> A CHECK?

>> A CHECK, TOO, YEAH.

I MEAN, AT LEAST YOU COULD GIVE

US CASH.

IT SEEMED THAT KIDS BETWEEN 12

AND 15, THEY REALIZED THAT THEY

WERE BILLIONAIRES.

UP TILL THAT AGE, THEY'D COME IN

FROM SOCCER PRACTICE.

YOU KNOW, YOU'D HAVE SPECIFIC

HIGH FIVES THAT YOU'D GIVE THEM.

YOU'D BE THEIR BUDDY.

BUT WHEN THEY GET OLDER, THE

KIDS WOULD SUDDENLY COME DOWN

TO THE LOBBY AND THEY'D JUST BE

DIFFERENT PEOPLE.

THEY'D WALK PAST YOU, AND THEY'D

HAVE A DIFFERENT WALK.

THEY WALKED LIKE THEIR DAD

SUDDENLY.

THEIR PARENTS MUST HAVE SAT THEM

DOWN AND SAID, YOU KNOW, "THIS

IS HOW YOUR LIFE IS, YOU KNOW?

YOU'RE A BILLIONAIRE, AND

THEY'RE YOUR DOORMEN, AND

THEY'RE YOUR HOUSEKEEPERS, AND

THEY'RE YOUR DRIVERS, AND

THEY'RE NOT IMPORTANT,"

YOU KNOW?

>> JUST BECAUSE YOU'RE RICH

DOESN'T MAKE YOU SMART.

JUST BECAUSE YOU'RE RICH DOESN'T

MAKE YOU CULTURED.

JUST BECAUSE YOU'RE RICH DOESN'T

MAKE YOU REFINED.

BEING RICH MEANS YOUR RICH.

SOME RICH PEOPLE ARE JUST DICKS.

>> STEPHEN SCHWARZMAN UNLEASHED

A DISGUSTING COMPARISON OVER

THE ADMINISTRATION'S EFFORT

TO INCREASE TAXES.

HE SAID...

>> IN THOUSANDS OF DIFFERENT

PEOPLE THAT WE'VE STUDIED ACROSS

THE COUNTRY, THE MORE YOU HAVE,

THE MORE ENTITLED AND DESERVING

OF THOSE THINGS YOU FEEL, AND

THAT MIGHT ACCOUNT, IN PART, FOR

THE VITRIOL THAT YOU SEE WHEN

PEOPLE FEEL LIKE THEIR

PRIVILEGED POSITION IS BEING

UNDERMINED BY OTHERS.

>> SINCE WHEN IN THIS COUNTRY

WAS IT OKAY TO DEMONIZE SUCCESS?

>> THE FREE-ENTERPRISE SYSTEM

IS UNDER ATTACK.

>> BACK TO THE OLD POPULIST

DEMONIZE THE RICH.

>> YOU KNOW, THE REPUBLICANS

ARE ALWAYS COMPLAINING ABOUT

THE DEMOCRATS PLAYING CLASS

WARFARE.

>> THE DEMOCRATIC PARTY'S GONNA

HAVE TO STOP BASHING THE RICH.

>> BUT THEY DO IT THEMSELVES

BY, FOR EXAMPLE, THEY'RE ALWAYS

QUICK TO POINT OUT THAT

SOMETHING LIKE HALF OF ALL

PEOPLE WHO FILE INDIVIDUAL

INCOME-TAX RETURNS HAVE EITHER

A ZERO OR A NEGATIVE TAX

LIABILITY.

>> WE HAVE A SYSTEM TODAY IN

THE UNITED STATES WHERE 45%

OF AMERICANS DON'T PAY ANY

INCOME TAX.

YOU HAVE TO HAVE SKIN IN

THE GAME.

>> Narrator: NO SKIN IN THE

GAME?

FOR THE BILLIONAIRES AT

740 PARK, IT'S SAFE TO SAY

THAT PAYING TAXES HAS NO

MEANINGFUL IMPACT ON WHETHER

THEY CAN PUT FOOD ON THE

TABLE, KEEP THEIR FAMILIES

HEALTHY, OR SEND THEIR KIDS

TO COLLEGE.

BUT ON THE OTHER PARK AVENUE,

SKIN IN THE GAME HAS A MORE

LITERAL MEANING.

IT STARTS AT BIRTH.

INFANT MORTALITY IN THE

UNITED STATES IS ALREADY

HIGHER THAN ALMOST EVERY

OTHER DEVELOPED COUNTRY, BUT

IN PARTS OF THE SOUTH BRONX,

IT'S EVEN WORSE.

HERE INFANTS ARE FOUR TIMES MORE

LIKELY TO DIE THAN THEY ARE IN

THE WEALTHY NEIGHBORHOODS ACROSS

THE RIVER.

AS FOR THE TAX CONTRIBUTIONS

OF AMERICA'S POOR, PEOPLE WHO

LIVE IN POVERTY HAVE SKIN IN

THAT GAME, TOO.

>> OVER 45% OF THE PEOPLE IN

THIS COUNTRY DON'T PAY INCOME

TAXES AT ALL, AND WE HAVE TO

QUESTION WHETHER THAT'S FAIR.

>> THOSE ARE PEOPLE WHO DON'T

PAY INCOME TAXES, OKAY?

IT INCLUDES ALL ELDERLY WOMEN

LIVING ALONE WHO JUST HAVE

ENOUGH SOCIAL SECURITY.

THEY DON'T EVEN DECLARE IT.

IT INCLUDES DISABLED PEOPLE WHO

DON'T HAVE EARNINGS.

BUT ALL THOSE PEOPLE PAY PAYROLL

TAXES, SALES TAXES, PROPERTY

TAXES.

>> STATE AND LOCAL TAXES,

GASOLINE TAXES, LIQUOR TAXES.

>> THIS IS RIDICULOUS TO SAY

LOW-INCOME PEOPLE DON'T PAY

TAXES.

THEY DO PAY TAXES, AND THEY PAY

A LOT OF THEM.

>> THEY'VE MANAGED TO TAKE THE

RESENTMENT OF THE MIDDLE CLASS,

WHICH HAS ACTUALLY BEEN QUITE

ECONOMICALLY SQUEEZED OVER

THE LAST COUPLE DECADES, AND

TURN THEIR RESENTMENT AGAINST

THE PEOPLE BENEATH THEM.

>> I THINK WE'RE REACHING

A TIPPING POINT.

WE'RE COMING CLOSE TO A TIPPING

POINT IN AMERICA WHERE WE MIGHT

HAVE A NET MAJORITY OF TAKERS

VERSUS MAKERS IN SOCIETY.

>> IT'S REALLY, YOU KNOW, LIKE

A MAGICIAN TRYING TO POINT

PEOPLE IN A DIFFERENT DIRECTION

SO THEY WON'T NOTICE WHAT'S

REALLY GOING ON.

>> IF YOU CAN TAKE THE

RESENTMENT OF THE MIDDLE CLASS

AND POINT IT DOWNWARD RATHER

THAN HAVING IT POINT UPWARD

TO THE PEOPLE ON THE TOP

OF THE 1% WHO ARE REALLY

WALKING AWAY RICHER THAN EVER,

THEN YOU CAN SUCCEED

POLITICALLY, AND I THINK THEY'VE

BEEN VERY GOOD AT THAT.

>> YOU KNOW, THE POOR ARE NOT

VERY WELL-REPRESENTED IN OUR

SYSTEM OF GOVERNMENT, I'M

AFRAID.

>> WHY IS THAT DO YOU THINK?

>> WELL, I THINK ONE REASON I

THINK HAS A LOT TO DO WITH

THE DECLINE OF THE UNIONS.

THROUGHOUT THE '30s AND '40s

AND '50s, THE UNIONS WERE

THE VANGUARD IN PUSHING FOR

SOCIAL LEGISLATION THAT WOULD

HELP THE LOWER CLASSES IN

GENERAL.

>> Narrator: UNIONS ARE PERHAPS

THE ONLY ORGANIZATIONS WITH

SIGNIFICANT FINANCIAL AND

POLITICAL CLOUT THAT ACTUALLY

REPRESENT THE WORKING CLASS.

SINCE THE LATE '70s, CORPORATE

INTERESTS HAVE BEEN EXTREMELY

SUCCESSFUL AT LIMITING THE POWER

OF UNIONS.

ONLY PUBLIC-SECTOR UNIONS HAVE

SHOWN SIGNS OF GROWTH, AND THE

KOCH BROTHERS HAVE PUT THEIR

FINANCIAL MUSCLE BEHIND AN

EFFORT TO DESTROY THEM.

>> WISCONSIN IS GROUND ZERO.

I THINK IT'S GONNA DETERMINE

LARGELY WHETHER OR NOT THE

PAMPERED NATURE OF THESE PUBLIC

EMPLOYEE UNIONS IS FINALLY

REINED IN.

>> IF YOU, LIKE DAVID KOCH

CONTROLS KOCH, WANT TO TAKE OVER

AMERICAN POLITICS, YOU'RE GONNA

WANT TO KNOCK OUT WHATEVER THE

ORGANIZED FORCES ARE ON THE

OTHER SIDE.

>> DISCHARGE THE DUTIES...

>> Narrator: ON JANUARY 3, 2011,

SCOTT WALKER BECAME GOVERNOR

OF WISCONSIN.

HE HAD RECEIVED SIGNIFICANT

FINANCIAL SUPPORT FROM THE

KOCH BROTHERS.

>> CONGRATULATIONS, GOVERNOR.

[ CHEERS AND APPLAUSE ]

>> THE NATIONAL CONSERVATIVE

MOVEMENT WANTED A PETRI DISH,

AND WE WERE THAT, AND HE WAS

MORE THAN WILLING TO DO WHAT

THEY WANTED AND NOT THE PEOPLE

OF WISCONSIN.

>> GOOD MORNING.

>> All: GOOD MORNING.

>> Narrator: WALKER QUICKLY

INTRODUCED A BILL TO BALANCE

THE STATE'S BUDGET, BUT IT

DISGUISED A MUCH BROADER AGENDA.

>> THE GOVERNMENT COMMUNITY

SAID, "LOOK, YOU GUYS GOT A

GREAT DEAL ON YOUR PENSION.

YOU DON'T PAY ANYTHING FOR YOUR

PENSION, AND IT'S A GOOD

PENSION, SO YOU SHOULD PAY 5%."

>> HALF OF WHAT THE OVERALL

CONTRIBUTION IS, WHICH IS ABOUT

5.8%.

>> OKAY.

COMPARED TO OTHER PLACES THAT

I SEE, OKAY.

HE SAID, "YOU SHOULD PAY MORE

FOR YOUR HEALTHCARE."

>> WE'RE ASKING FOR A HEALTHCARE

PREMIUM CONTRIBUTION OF JUST

ABOUT 12 1/2%.

>> WE HAD A GOOD DEAL ON

HEALTHCARE, OKAY.

>> WE REMOVED HEALTHCARE AND

PENSION CONTRIBUTIONS FROM

COLLECTIVE BARGAINING.

>> THEY SAID, "WAIT A MINUTE.

NOW WE DON'T WANT ANY MORE

COLLECTIVE BARGAINING."

AND WE WENT, WHOA, WAIT A

MINUTE.

STOP.

YOU CAN'T DO THAT.

>> Narrator: WALKER'S

LEGISLATION WAS A SURPRISE

ATTACK ON THE POLITICAL POWER

OF PUBLIC-SECTOR UNIONS AND

THEIR ABILITY TO NEGOTIATE ON

BEHALF OF WORKERS.

>> TAKE AWAY COLLECTIVE

BARGAINING, AND WHAT DOES A

PERSON THAT'S MAKING, LET'S SAY,

$7 TO $9 AN HOUR AT UNIVERSITY

OF WISCONSIN HOSPITAL SERVING

LUNCH -- WHAT VOICE WILL THEY

HAVE IN THE WORKPLACE?

>> Narrator: WITHIN DAYS, THE

LARGEST UNIONS ANNOUNCED THAT

THEY WERE WILLING TO MAKE

SACRIFICES THAT WOULD HELP

SAVE THE STATE MONEY, BUT

THEY WOULDN'T GIVE UP THEIR

COLLECTIVE-BARGAINING RIGHTS.

>> THE UNIONS AND THE DEMOCRATS

HAVE SAID THEY'RE WILLING TO

TAKE THE CONCESSIONS ON WAGE

AND HEALTH BENEFITS, THEY'RE

WILLING TO TAKE ABOUT AN 8%

PAY CUT, BUT THEY SIMPLY DON'T

WANT YOU TO TAKE AWAY THEIR

COLLECTIVE-BARGAINING RIGHTS.

>> WHAT WE'RE ASKING FOR

REALISTICALLY IS SOMETHING THAT

NEARLY EVERY OTHER PERSON IN

THIS STATE AND EVERY OTHER

PERSON ACROSS THIS COUNTRY

IS PAYING A WHOLE LOT MORE FOR

WHEN IT COMES TO RETIREMENT

AND HEALTHCARE --

>> GOVERNOR, THEY ALREADY SAID

THEY'RE WILLING TO GIVE UP

ON THE PENSIONS AND ON

THE HEALTHCARE.

THEY ALREADY SAID THAT.

THEY'VE ALREADY MADE THOSE

CONCESSIONS.

>> BUT THAT'S A RED HERRING.

BUT YOU CAN SAY ANYTHING IN

THE MIDST OF THE DEBATE.

>> THEN WE REALLY KNEW IT WAS

NOT ABOUT FIXING A BUDGET AT

ALL.

IT WAS ABOUT BREAKING UNIONS

AND BREAKING THE POLITICAL POWER

THAT UNIONS HAVE.

>> GOVERNOR WALKER'S AGENDA

IS A NATIONAL AGENDA.

I MEAN, AND IT'S SEATED AND IT

IS WELL-FUNDED BY THE KOCH

BROTHERS.

[ INDISTINCT CHANTING ]

[ MILITARY-STYLE DRUMBEATS

PLAY ]

>> Narrator: FOR MORE THAN

A YEAR, WISCONSIN BECAME

A BATTLEGROUND.

PRO-UNION PROTESTORS OCCUPIED

THE STATEHOUSE FOR MORE THAN

TWO WEEKS.

THEY GATHERED OVER A MILLION

SIGNATURES TO FORCE A RECALL

ELECTION TO GET WALKER REMOVED.

THE UNIONS SPENT MILLIONS

FIGHTING FOR THEIR SURVIVAL.

BUT WEALTHY INTERESTS OUTSIDE

THE STATE SPENT FAR MORE.

THE BIGGEST SINGLE SOURCE

OF MONEY WAS

AMERICANS FOR PROSPERITY,

WHICH HAS SPENT OVER $10 MILLION

TO SUPPORT SCOTT WALKER.

>> TODAY WE HAVE MORE ACTIVISTS

IN OUR WISCONSIN A.F.P. CHAPTER

THAN THERE ARE MEMBERS OF THE

WISCONSIN TEACHERS UNION.

WE HAVE A VERY STRONG, VIBRANT

OPERATION THERE.

>> WALKER HAS PAINTED TEACHERS

AND OTHER PUBLIC UNION EMPLOYEES

AS THE HAVES AND THE PRIVATE

SECTOR AS THE HAVE-NOTS.

>> IF THE PUBLIC SCHOOLTEACHERS

THINK THEY HAVE IT SO ROUGH,

QUIT AND FIND ANOTHER LINE

OF WORK.

I THINK McDONALD'S IS HIRING.

>> THE MADISON FIREFIGHTERS

UNION, YOU ARE SUPPOSED TO BE

OUR HEROES.

YOU'RE NOT HEROES.

>> CAN WE JUST GET TO THE POINT

WHERE WE CAN START TELLING THESE

WHINERS TO GO TO HELL?

>> SO YOU SEE PEOPLE WHO MAYBE

DON'T HAVE THE BENEFITS, AND

INSTEAD OF SAYING TO THEMSELVES,

"YEAH, WE SHOULD HAVE THAT,

TOO," IT'S "YOU SHOULDN'T HAVE

THAT."

>> WHAT THEY'RE TRYING TO DO IS

REALLY SQUASH YOU SO THAT THEY

CAN HAVE THAT MUCH MORE POWER

AND YOU CAN HAVE THAT MUCH LESS

VOICE.

>> IT'S TEACHERS WHOSE PAY HAS

BEEN REDUCED AGAINST THE KOCH

BROTHERS.

IT'S NOT A REALLY FAIR FIGHT.

[ TELEPHONE RINGS ]

>> HI, THIS IS SCOTT WALKER.

>> SCOTT? DAVID KOCH.

HOW ARE YOU?

>> HOW ARE YOU, DAVID?

I'M GOOD. AND YOURSELF?

>> I'M VERY WELL.

A LITTLE DISHEARTENED BY THE

SITUATION THERE, BUT, UH, WHAT'S

THE LATEST?

>> UH, WE'LL ANNOUNCE THURSDAY,

AND WE'LL PROBABLY GET 5,000 TO

6,000 STATE WORKERS WHO WILL GET

AT-RISK NOTICES FOR LAYOFFS.

>> BEAUTIFUL, BEAUTIFUL.

GOT TO CRUSH THAT UNION.

>> AND JUST KIND OF PASS THE

MESSAGE ON TO THESE GUYS IF THEY

THINK I'M CAVING, THEY'VE BEEN

ASLEEP FOR THE LAST EIGHT YEARS

'CAUSE WE DON'T BUDGE.

>> GODDAMN RIGHT.

BUT, UH, WHAT WE WERE THINKING

ABOUT THE CROWDS WAS -- WAS

PLANTING SOME TROUBLEMAKERS.

>> YOU KNOW, WE THOUGHT ABOUT

THAT.

MY ONLY GUT REACTION TO THAT

WOULD BE, LET THEM PROTEST ALL

THEY WANT.

SOONER OR LATER THE MEDIA STOPS

FINDING THEM INTERESTING.

THE NEXT QUESTION, I TALK

TO KASICH EVERY DAY.

YOU KNOW, JOHN'S GOT TO STAND

FIRM IN OHIO.

I THINK WE DO THE SAME THING

WITH RICK SCOTT IN FLORIDA.

I THINK SNYDER, IF HE GOT A

LITTLE MORE SUPPORT, PROBABLY

COULD DO THAT IN MICHIGAN.

YOU START GOING DOWN THE LIST,

A LOT OF US NEW GOVERNORS GOT

ELECTED TO DO SOMETHING BIG.

>> YOU'RE THE FIRST DOMINO.

>> YEP. THIS IS OUR MOMENT.

THIS IS OUR TIME TO CHANGE

THE COURSE OF HISTORY.

>> Narrator: IN PLACES LIKE

WISCONSIN, THE DOORS OF

OPPORTUNITY FOR THOSE IN THE

LOWER RUNGS OF SOCIETY ARE

CLOSING QUICKLY.

>> WE ARE IN VERY REAL DANGER

THAT THE AMERICAN DREAM IS

SLIPPING FROM THE GRASP OF

THE NEXT GENERATION.

>> Narrator: THIS CHARITY EVENT

IS A MOMENT FOR WEALTHY

NEW YORKERS TO GIVE SOME

OF THEIR FORTUNES TO THE POOR.

OVER THE LAST DECADE,

STEPHEN SCHWARZMAN HAS GIVEN

OVER $7 MILLION TO NEW YORK'S

INNER-CITY SCHOLARSHIP FUND.

>> I WORRY THAT THE SOCIAL

FABRIC OF AMERICA IS BEING

RIPPED PURPOSEFULLY BY PEOPLE

WHO ARE TAKING ADVANTAGE OF

INDIVIDUALS WHO ARE SUFFERING.

>> Narrator: MR. SCHWARZMAN

APPEARS TO BE SYMPATHETIC TO

THOSE WHO ARE LIVING IN POVERTY,

BUT ODDLY, FOR ONE OF AMERICA'S

GREATEST CAPITALISTS, HE DOESN'T

SEEM TO UNDERSTAND THAT, UNLIKE

MONOPOLY, REAL CAPITALISM IS

A GAME THAT'S PLAYED FOR KEEPS.

FOR EVERY BIG WINNER, THERE ARE

LOTS OF LOSERS.

WEALTH IS CREATED, BUT SO IS

POVERTY.

WITHOUT POPULAR DEMOCRACY,

ALL THE GAINS OF OUR ECONOMY

WILL GO TO THE TOP.

>> [ Chanting ] SHOW ME WHAT

DEMOCRACY LOOKS LIKE!

>> [ Chanting ] THIS IS WHAT

DEMOCRACY LOOKS LIKE!

[ INDISTINCT CHANTING ]

>> I'M FROM MICHIGAN.

THIS IS WHERE OUR MONEY IS.

PEOPLE LOST THEIR HOMES IN

THE BANKING AND MORTGAGE CRISIS,

AND IT WENT HERE.

>> THERE'S NOTHING WRONG WITH

BEING RICH.

GOD WANTS ALL HIS CHILDREN

TO BE RICH, BUT DON'T BE RICH

AND AT A PLACE WHERE YOU AIN'T

THINKING ABOUT ANYBODY ELSE.

>> THEY FEEL THEY NEED NOT

$10 BILLION, BUT $20 BILLION

OF WEALTH.

THEY GET THAT EXTRA WEALTH BY

TWISTING POLITICS, BUYING

POLITICIANS.

AMERICA BECAME A PLACE WHERE

MONEY BUYS EVERYTHING.

>> Narrator: THE RICH ARE OFTEN

HELD UP AS SHINING EXAMPLES OF

WHAT'S POSSIBLE IN AMERICA...

PROOF THAT ANYONE CAN MAKE IT.

BUT IS THERE STILL A BRIDGE

TO ECONOMIC OPPORTUNITY IN

OUR COUNTRY?

WHEN WE LOOK AT THE RIVER THAT

SEPARATES THE TWO PARK AVENUES,

DO WE SEE A CHANNEL TO

PROSPERITY FOR EVERYONE?

OR A BARRIER THAT PREVENTS

THE POOR FROM CROSSING?

AS LONG AS OUR POLITICAL LEADERS

DEPEND ON THE RICH TO WIN

ELECTIONS AND STAY IN OFFICE,

THEY WILL WRITE LAWS TO PROTECT

THE CASTLES OF WEALTH AND POWER

ON THE OTHER SIDE OF THIS RIVER,

A RIVER THAT HAS BECOME A DEEP

AND FORBIDDING MOAT.