0:00:01.000,0:00:03.000 Free Culture 0:00:06.000,0:00:08.000 Etienne Chouard 0:00:10.000,0:00:13.000 10 reasons to leave the European Union 0:00:14.000,0:00:16.000 Part 1 0:00:18.000,0:00:23.000 The European Constitution, the third part of it, and all of this had been written in a treaty 0:00:23.000,0:00:28.000 without constituent assembly… The European Constitution, 0:00:29.000,0:00:32.000 the third part of it, imposed a form of politics, the liberal politics. 0:00:32.000,0:00:36.000 It took us most part of the debates, however, it seems to me that in the first part of it, 0:00:37.000,0:00:42.000 there were things much worse. So my point is to sum up with you, 0:00:43.000,0:00:47.000 maybe quite quickly so that it’s not… so that it’s not boring 0:00:48.000,0:00:52.000 10 key points that seem to me absolutely revolting , 0:00:53.000,0:00:57.000 that citizens should know of, which are part of the European Institutions, 0:00:58.000,0:01:03.000 institutions that have been written without our agreement, have not been debated with our consultation 0:01:04.000,0:01:07.000 and in the end, when we were consulted, and said no, 0:01:07.000,0:01:10.000 they were however imposed on us through the Parliament, 0:01:11.000,0:01:13.000 with the Treaty of Lisbon. 0:01:13.000,0:01:19.000 It seems to me rather important that the citizens should know, 0:01:20.000,0:01:26.000 That among the thousands of articles of these Institutions, there are things against their own interest. 0:01:27.000,0:01:31.000 The first point is that the European Institutions, 0:01:33.000,0:01:36.000 And that’s in the first part, doom us to massive unemployment. 0:01:37.000,0:01:41.000 1 - The European Union encourages massive unemployment. 0:01:42.000,0:01:45.000 Of course it’s not written this way, of course in the European institutions, 0:01:45.000,0:01:53.000 it is not said “The Institutions warrant that unemployment rate will be high.” 0:01:54.000,0:01:57.000 If it were written like this, we would have had revolutions… No, it’s more wicked: 0:01:58.000,0:02:05.000 in the first part, an independent central bank is planned, 0:02:09.000,0:02:13.000 having therefore no orders to receive from the people you’ve elected, 0:02:14.000,0:02:17.000 you can vote for the extremes, the left wing, the right wing or the centrists, whoever you want 0:02:17.000,0:02:23.000 the central bank is no longer accountable to the people you elect 0:02:25.000,0:02:27.000 either in your country, or in Europe, 0:02:29.000,0:02:33.000 and, which goes together with this point is that this bank’s mission, its one and only mission, its priority, 0:02:34.000,0:02:38.000 THE European Central Bank’s mission is to fight inflation. 0:02:39.000,0:02:47.000 Now, all the bankers in the world know that to fight inflation, to turn this into a priority 0:02:47.000,0:02:51.000 will end up in unemployment of the most disadvantaged people, the weakest ones. 0:02:52.000,0:02:55.000 Well, there are lots of books on this topic, 0:02:55.000,0:02:57.000 Still there are two that are particularly worth knowing: 0:02:59.000,0:03:05.000 A first book by Fitoussi, published in 2005, I think, yes that’s it January 2005. 0:03:05.000,0:03:09.000 So this book was published during the campaign, it’s called: “The politics of powerlessness”. 0:03:11.000,0:03:15.000 This book… So that you know, Fitoussi is not at all a revolutionary person 0:03:15.000,0:03:19.000 he’s very, very moderate, balanced. He’s an interesting economist 0:03:20.000,0:03:23.000 and he’s the one who uses these words, saying: 0:03:23.000,0:03:26.000 “All the bankers in the world know that, when they follow one goal, 0:03:27.000,0:03:32.000 which is to fight inflation, it ends up in unemployment.” 0:03:33.000,0:03:36.000 When Fitoussi says that, I think we could say it in a way even more radical 0:03:37.000,0:03:41.000 and more virulent and more outraged. 0:03:43.000,0:03:46.000 How do we know… Well, by what mechanisms the fight against inflation 0:03:48.000,0:03:50.000 results in unemployment and vice versa? 0:03:51.000,0:03:56.000 Well, you have to know that economists are at war with each other on this topic. 0:03:58.000,0:04:00.000 We also have to understand why they are at war 0:04:00.000,0:04:02.000 And who the economists are. 0:04:03.000,0:04:06.000 So, I begin with what seems most important to me, 0:04:08.000,0:04:13.000 In the economists’ thought, one of them called Phillips established, through observation 0:04:14.000,0:04:20.000 (he didn’t explain why it is like that), 0:04:20.000,0:04:26.000 But based on the statistics of one century he noticed that the inflation periods 0:04:28.000,0:04:34.000 Were periods of low unemployment rate and vice versa. 0:04:34.000,0:04:41.000 Actually, Phillips noticed this on the wages and other economists after him 0:04:42.000,0:04:45.000 Established the link between the wages and inflation and in the end, the combination of their works, 0:04:46.000,0:04:49.000 Made it clear that figures of the statistics of one century show that 0:04:50.000,0:04:54.000 When you have a high unemployment rate, you have a low inflation rate, 0:04:55.000,0:04:57.000 And when you have a high inflation rate, you have a low unemployment rate. 0:04:58.000,0:05:03.000 After that, to understand the reason why is a huge debate among economists. 0:05:03.000,0:05:05.000 There are some people, who disagree on the mechanisms, 0:05:06.000,0:05:10.000 But, you know, it’s an empirical truth: we do notice that 0:05:13.000,0:05:19.000 Fighting against unemployment will increase the wages and so will inflation. 0:05:20.000,0:05:23.000 Well, we can understand, there are some mechanisms quite simple: 0:05:23.000,0:05:27.000 When there is a low unemployment rate, when you are sure you’ll find a job, 0:05:27.000,0:05:30.000 If you lose your job, you’re going to find another one, 0:05:31.000,0:05:34.000 You’re going to be more demanding when you have another job 0:05:34.000,0:05:39.000 And ask for your wages, because you have… because you’re not in a precarious situation, 0:05:40.000,0:05:42.000 You are not afraid for your job, 0:05:42.000,0:05:45.000 You know that you’re going to find another one, there are jobs for everybody 0:05:45.000,0:05:47.000 You will be demanding when asking for your wages. And the firms impact the wages, 0:05:48.000,0:05:52.000 which are costs for them, they impact them on the prices. 0:05:53.000,0:05:56.000 So there is actually a logic, quite simple, and surely quite strong. 0:05:56.000,0:06:00.000 It’s not the only mechanism but it’s one of them that we have to know. 0:06:02.000,0:06:07.000 On the contrary, a high unemployment rate enables the employers to impose low wages 0:06:08.000,0:06:12.000 Because as people are afraid for their job, they are not demanding, 0:06:12.000,0:06:15.000 they are more submitted and there is less pressure on the wages, 0:06:16.000,0:06:18.000 so there is less pressure on the costs, so it enables the employers 0:06:19.000,0:06:25.000 to go on making high benefits without their having to pay high wages. 0:06:28.000,0:06:33.000 So Friedman and a bunch of economists that we can define as prostituted, 0:06:33.000,0:06:37.000 I think that, generally speaking, the economists have a prostituted thought, 0:06:38.000,0:06:41.000 it’s a harsh attack, sure, but I think it’s so obvious, 0:06:42.000,0:06:45.000 that it’s however difficult to question this, 0:06:46.000,0:06:49.000 we can’t say that all of them are prostituted, 0:06:50.000,0:06:55.000 there are economists, few, that are humanist, honest, resisting 0:06:56.000,0:06:59.000 and not prostituted, not corrupted by the richest people 0:07:00.000,0:07:03.000 but the main reason why the economist were born was 0:07:06.000,0:07:10.000 to make durable the domination of the richest people, 0:07:10.000,0:07:12.000 to justify and legitimate, 0:07:13.000,0:07:19.000 make natural, as if it was a unquestionable and natural fact, 0:07:21.000,0:07:23.000 “let’s talk about something else now”, the domination of the richest people. 0:07:25.000,0:07:33.000 Ricardo was the son of a banker, himself involved in the financial business and he protected, 0:07:34.000,0:07:38.000 with his economic theory, the interests of the class he belonged to. 0:07:41.000,0:07:45.000 So the economists, for example Friedman, 0:07:46.000,0:07:53.000 contest the correlation there is, as reversed proportions, 0:07:53.000,0:07:57.000 between inflation and unemployment saying : “Not at all… 0:07:58.000,0:08:01.000 there were a few years in the 70’s, when the correlation 0:08:02.000,0:08:06.000 was not noticed. And they took this variation in the statistics 0:08:08.000,0:08:11.000 as a pretext to argue that the principle was not right, 0:08:12.000,0:08:15.000 when actually you could as well say that the principle is right, 0:08:15.000,0:08:20.000 most of the time because most of the time when you fight against unemployment 0:08:20.000,0:08:25.000 will end up in inflation and if this inflation goes on will make the unemployment rate decrease. 0:08:26.000,0:08:33.000 We can say it in other words: this principle is most of the time witnessed, 0:08:34.000,0:08:39.000 and indeed in the 70’s it was not, certainly for reasons 0:08:40.000,0:08:43.000 that are still to determine, other reasons that were stronger, 0:08:44.000,0:08:47.000 in this couple of years , than the general principle, but which are 0:08:48.000,0:08:51.000 no reason enough to declare Phillips’ work null. 0:08:51.000,0:08:58.000 So the little book I suggest you read, written by Liêm Hoang-Ngoc, 0:08:58.000,0:09:02.000 hard to pronounce and to remember but he’s a good economist, 0:09:03.000,0:09:08.000 a young man who’s made an absolutely remarkable work on other topics as well, 0:09:09.000,0:09:11.000 this book’s called “The fabulous destiny of the Phillips’ curve”. 0:09:12.000,0:09:15.000 This is a good little book, which is useful to remind people of Phillips’ work, 0:09:17.000,0:09:21.000 and it shows the ideological fight, 0:09:22.000,0:09:28.000 cause it’s damn important for the employers to prevent being said 0:09:30.000,0:09:34.000 that we have to chose between inflation and unemployment 0:09:34.000,0:09:37.000 and that in the end the society’s choice for the economy is inflation 0:09:38.000,0:09:41.000 or unemployment, because what they want is unemployment. 0:09:44.000,0:09:51.000 They know it’s linked but they cannot admit it, that inflation gnaws their gold pile I mean, 0:09:52.000,0:09:54.000 whereas as for the workers and the firms… 0:09:56.000,0:09:58.000 Workers are not bothered by inflation. 0:09:58.000,0:10:03.000 If you have an indexation… Maurice Allais, Nobel Prize in Economy 0:10:03.000,0:10:10.000 stands for the idea of the general indexation of the wages, the rents, the loans on the inflation, 0:10:10.000,0:10:12.000 so that nobody is put at a disadvantage, 0:10:13.000,0:10:17.000 so that the unit of monetary measure is not variable 0:10:18.000,0:10:20.000 Let’s imagine that a mile would constantly change its length, 0:10:21.000,0:10:24.000 It would be very complicated to measure anything. 0:10:25.000,0:10:29.000 In the same way, a currency must have a stable value 0:10:31.000,0:10:35.000 In order for the actors to have points of reference that can be trusted. 0:10:36.000,0:10:39.000 So in a general indexation background 0:10:41.000,0:10:45.000 if wages fluctuate together with the inflation, you don’t have anything to fear from inflation, 0:10:46.000,0:10:50.000 you have a shield protecting you against inflation. 0:10:51.000,0:10:56.000 And if the rent are indexed on the inflation, the landlords 0:10:57.000,0:10:59.000 renting their buildings are protected against inflation. 0:11:00.000,0:11:03.000 So in the end who does inflation put at a disadvantage? 0:11:03.000,0:11:07.000 People who have cash, people who have a lot of money, 0:11:08.000,0:11:10.000 in particular people who have huge amounts of fiduciary money. 0:11:11.000,0:11:14.000 This money loses value, dramatically. 0:11:15.000,0:11:19.000 If you have between 10% and 15% of inflation, these people, 0:11:19.000,0:11:21.000 and there are so few of them, 0:11:22.000,0:11:25.000 there are very few people who have lots of cash, to the point 0:11:26.000,0:11:29.000 they really worry about it, very few people. 0:11:31.000,0:11:33.000 So shall these people… 0:11:36.000,0:11:41.000 these people’s interests be given priority on general interest ? 0:11:41.000,0:11:47.000 It seems to me the answer is no. A bit of inflation, a general indexation so 0:11:47.000,0:11:50.000 in the end everyday people are protected against inflation, 0:11:50.000,0:11:53.000 if this makes it possible to fight unemployment and to give everyone a job, 0:11:53.000,0:11:56.000 well, listen, it’s a society’s choice, which, at least, 0:11:56.000,0:11:59.000 could be the object of a public debate. We could discuss it. 0:11:59.000,0:12:01.000 Well no, the European Union decided for you, 0:12:02.000,0:12:07.000 you didn’t have your say in the matter: in 1957 was established, 0:12:07.000,0:12:10.000 with the Treaty of Rome, a system, 0:12:11.000,0:12:14.000 that was very cleverly done because during the first years, 0:12:15.000,0:12:21.000 for 20 years actually, the Treaty of Rome was not enforced. 0:12:22.000,0:12:25.000 It was established but not enforced. So people, 0:12:26.000,0:12:32.000 in the beginning had been very suspicious. Mendès France stormed against it, sayting: 0:12:32.000,0:12:35.000 “This is not good at all, we are going to lose our sovereign power. 0:12:35.000,0:12:38.000 We have many things to lose with this treaty.” And then, years going by, 0:12:38.000,0:12:42.000 and nothing changing: we were protectionist, nationalist, 0:12:42.000,0:12:45.000 we had control on our currency, 0:12:45.000,0:12:47.000 in the end this treaty didn’t make any difference in our lives. 0:12:48.000,0:12:51.000 there was a control of trade and exchange, we had our currency, 0:12:53.000,0:12:58.000 there was no free trade. This treaty established things that were not enforced 0:12:58.000,0:13:01.000 We let it go, we lowered our guard. 0:13:02.000,0:13:05.000 We were not suspicious and in the 80’s, without breathing a word of it, 0:13:05.000,0:13:08.000 to us, they enforced the Treaty of Rome, 0:13:08.000,0:13:11.000 they started to implement it. They started to implement free trade, 0:13:12.000,0:13:15.000 to liberalize the capital, the capital movements, 0:13:16.000,0:13:18.000 to authorize the free establishment of any firm anywhere, 0:13:18.000,0:13:22.000 in any State, thus authorizing, they authorized 0:13:22.000,0:13:25.000 the competition of all against all. 0:13:26.000,0:13:30.000 And we were asleep, we had lowered our guard 0:13:30.000,0:13:34.000 and every time brave militants were protesting 0:13:34.000,0:13:36.000 they were answered back: “Come on 0:13:36.000,0:13:39.000 you’re protesting against something that was written in 1957!” 0:13:40.000,0:13:44.000 That is very clever. Very clever indeed. To implement a system step by step, 0:13:45.000,0:13:48.000 gradually, people don’t see anything, well yes they see but you know… 0:13:49.000,0:13:52.000 It’s not important enough to rebel against it. And eventually 0:13:52.000,0:13:54.000 you have an awful machine that has been established, 0:13:55.000,0:13:58.000 and that has been established at the highest level of law, constitutional law, 0:13:58.000,0:14:02.000 and even on the international level, with treaties that are not revisable, 0:14:02.000,0:14:05.000 unless there is a unanimity, and the more we are, 0:14:05.000,0:14:09.000 the more unanimity becomes a block, the total impossibility 0:14:09.000,0:14:14.000 to change anything. And that’s where we are. Because we are 27 and the unanimity at 27… 0:14:15.000,0:14:17.000 we will never be able to change anything to these treaties anymore. 0:14:18.000,0:14:24.000 So, to get back to what I said in the beginning, the first point, loathsome point, 0:14:25.000,0:14:31.000 truly loathsome, really a reason to revolt, to start a revolution! 0:14:32.000,0:14:37.000 is the institutionalization of unemployment, 0:14:39.000,0:14:44.000 the constitutional obligation, the condemnation to massive unemployment. 0:14:44.000,0:14:48.000 I do think it is very serious! 0:14:48.000,0:14:50.500 The monetary politics is able to influence the relation between inflation and unemployment, 0:14:50.500,0:14:55.385 playing on the interest rates and the creation of money. 0:14:58.000,0:15:03.000 The choice that has been made by the oligarchs is massive unemployment 0:15:03.000,0:15:07.000 and the less inflation possible, which goes together. And they didn’t tell you 0:15:07.000,0:15:11.000 “massive unemployment” they told you “less inflation possible”, 0:15:11.000,0:15:14.000 saying it is to protect the weakest. Bullshit! 0:15:14.000,0:15:17.000 It’s not to protect the weakest it’s to protect the richest 0:15:18.000,0:15:20.000 0:15:20.000,0:15:24.102 0:15:26.700,0:15:30.309 0:15:30.309,0:15:34.206 0:15:34.238,0:15:37.686 0:15:38.614,0:15:40.042 0:15:40.088,0:15:44.013 0:15:44.044,0:15:48.214 0:15:48.247,0:15:49.724 0:15:49.767,0:15:58.767 0:15:58.997,0:16:01.747 0:16:01.769,0:16:04.258 0:16:04.258,0:16:07.738 0:16:07.784,0:16:13.507 0:16:13.523,0:16:17.156 0:16:17.203,0:16:20.636 0:16:20.683,0:16:26.002 0:16:26.126,0:16:29.236 0:16:29.313,0:16:33.036 0:16:33.083,0:16:36.936 0:16:36.998,0:16:39.698 0:16:39.775,0:16:44.153 0:16:44.246,0:16:48.027 0:16:48.073,0:16:50.338 0:16:50.400,0:16:54.092 0:16:54.150,0:16:57.067 0:16:57.128,0:17:00.156 0:17:00.248,0:17:02.356 0:17:03.143,0:17:04.551 0:17:04.597,0:17:06.682 0:17:06.713,0:17:10.356 0:17:10.402,0:17:14.010 0:17:14.051,0:17:17.640 0:17:17.705,0:17:19.733 0:17:19.795,0:17:23.359 0:17:23.524,0:17:27.836 0:17:27.924,0:17:31.257 0:17:31.321,0:17:33.930 0:17:33.945,0:17:36.173 0:17:36.250,0:17:38.989 0:17:39.066,0:17:41.027 0:17:41.089,0:17:42.989 0:17:43.035,0:17:44.931 0:17:44.992,0:17:46.623 0:17:46.676,0:17:48.303 0:17:48.365,0:17:49.659 0:17:49.731,0:17:53.180 0:17:53.242,0:17:54.796 0:17:54.928,0:17:57.266 0:17:57.397,0:18:01.074 0:18:01.158,0:18:05.211 0:18:05.303,0:18:09.190 0:18:09.236,0:18:10.987 0:18:10.987,0:18:13.982 0:18:14.091,0:18:15.760 0:18:15.760,0:18:19.144 0:18:19.155,0:18:21.274 0:18:21.274,0:18:23.877 0:18:23.877,0:18:27.969 0:18:27.969,0:18:29.154 0:18:29.195,0:18:32.434 0:18:32.434,0:18:34.080 0:18:34.112,0:18:36.875 0:18:36.875,0:18:39.875 0:18:39.906,0:18:41.622 0:18:41.622,0:18:42.515 0:18:42.515,0:18:44.400 0:18:44.400,0:18:45.746 0:18:45.746,0:18:47.188 0:18:47.188,0:18:49.281 0:18:49.365,0:18:51.514 0:18:51.566,0:18:54.641 0:18:54.704,0:18:55.920 0:18:55.960,0:18:58.226 0:18:58.226,0:19:00.546 0:19:00.546,0:19:01.623 0:19:01.756,0:19:05.573 0:19:05.573,0:19:07.137 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