Chalkboard Lesson: How the Rich Get Richer and the Little Guy Gets Soaked

Income inequality is a topic usually employed by the left to pass further entitlements - often times just to secure more votes. But there is a real bubble about to burst that will have the rich getting richer and soak the average investor in the stock market.

Monday on The Glenn Beck Program, Glenn took to the chalkboard to break down how the system has historically worked compared to how it's running now - and the results aren't pretty.

"In the old way, let's take Ford. Ford started a company with Henry Ford. And let's -- I'm making this number up -- let's say he started with a million dollars of his own money, and he invested in that company. And he started with a million dollars that he didn't want to lose. And he started making cars," Glenn said.

"But he could only make a limited number of cars because he only had his million dollars. But he was making the cars that he wanted. So he thought, 'Okay, we can make a lot more money and a lot more cars if I get some investors.' The way you get investors is, you go to the stock market."

Enjoy this complimentary clip from The Glenn Beck Program:

The market would value your stock based on its EBIDTA --- earnings before interest, depreciation, taxes and amortization. As that number went up, the value of your stock went up and the more you could invest into your company to expand facilities and production.

The historical model could, theoretically, sustain itself --- and it has. But the new model might as well have been designed by Bernie Madoff.

"Let me show you how dangerous this bubble is and the entire world will now start to make sense to you," Glenn said. "Here's the new way. Here's the evil corporation, and it's run by the CEOs and the boards. And the CEOs and the boards -- unlike Henry Ford -- they don't have any money in this. They're hired guns. They have nothing in this company."

These hired guns are paid in cash and stocks, with their only intention being to raise the price of the stock by any means necessary.

Here's where things get hairy.

"Now, they already have stocks. They already have investors --- you. They're already traded. And let's say they make tablets. And it's good tablets. And everything is great. But their EBIDTA, their earnings before interest, taxes, depreciation and amortization is going down. What does it do to their stock price?" Glenn said.

"It drives it down. Who cares? You and the board and CEOs, right? CEOs really care because they've got a lot in stocks. So things are falling apart because the economy is bad, maybe jobs are being driven overseas, they can't make things as cheaply . . . whatever the reason is . . . mainly the economy is bad. Their earnings are going down."

When this happens, the stock price should be going down, but the hired guns are taking advantage of cheap loans from the federal reserve to buy up stock. This artificially inflates stock prices allowing these guys to sell off their own stock and cash in before the collapse comes, before the bubble bursts.

"You want to know how the rich get richer? Unlike you, these guys are watching the global economy. What's happening? Our economy is not doing well. Who are the people that are watching that economy and know before you do?" Glenn said.

"The corporations. Because it's their job to know. When the corporations understand, 'Holy crap, this thing is -- this bubble is about to burst, this thing is -- the wheels are coming off of the economy, the global economy,' what is the first thing these guys are going to do with their stocks? They're going to sell it. They'll walk away with money."

So if they are the ones walking away with all the money, what happens to the average investor?

"Everyone else who is in mutual bonds or stocks or anything else, you'll be wiped out. But these guys will be very, very wealthy. And that is exactly what's happening. That is what's happening," Glenn said.

This is one place where Donald Trump is dead wrong. He's used to the old system and believes we can just print more money to dig ourselves out of the hole without defaulting.

"And this is the system that Donald Trump is used to. You game the system," Glenn said. "He always says, 'I came out great.' That's what's happening. The upper level is going to come out fantastic. The rich will get richer. And you will be left with nothing."

It wouldn't be a proper chalkboard lesson without a little parting wisdom from classic literature.

"To quote Rudyard Kipling, 'We had plenty of money, but nothing our money could buy.' Why? Because in the end, the federal government doesn't go broke. It doesn't go bankrupt. It prints money."

If this all plays out the way it's headed, Bernie Sanders' pipe dream of a $15 an hour minimum wage will be less than peanuts in the new economy. Do you "feel the Bern" now?

Listen to this segment from The Glenn Beck Program:

Terry Trobiani owns Gianelli's Drive Thru in Prairie Grove, Illinois, where he put up a row of American flags for the Fourth of July. But the city claimed he was displaying two of them improperly and issued him a $100 ticket for each flag.

Terry joined Glenn Beck on the radio program Tuesday to explain what he believes really happened. He told Glenn that, according to city ordinance, the American flag is considered "ornamental" and should therefore have been permitted on a federal holiday. But the city has now classified the flag as a "sign."

"Apparently, the village of Prairie Grove has classified the American flag as a sign and they've taken away the symbol of the American flag," Terry said. "So, as a sign, it falls under their temporary sign ordinance, which prohibits any flying, or any positioning of signs on your property — and now this includes the American flag. [...] The only way I could fly the American flag on my property is if I put it on a permanent 20 to 30-foot flagpole, which they have to permit."

Terry went on to explain how the city is now demanding an apology for his actions, and all after more than a year of small-business crushing COVID restrictions and government mandates.

"COVID was tough," Terry stated. "You know, we're in the restaurant business. COVID was tough on us. We succeeded. We made it through. We cut a lot of things, but we never cut an employee. We paid all our employees. I didn't take a paycheck for a year just to keep our employees on, because it was that important to me to keep things going. And, you know, you fight for a year, and you beat a pandemic, and then you have this little municipality with five trustees and a president, who just have no respect for small businesses. And right now, what I see is they have no respect for the republic and the United States ... I think it's terrible. The direction that government, at all levels, have taken us to this point, it's despicable."

Watch the video below to catch more of the conversation:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.

The Biden administration is now doing everything it can to censor what it has decided is COVID-19 "misinformation." But Glenn Beck isn't confident that the silencing of voices will stop there.

Yeonmi Park grew up in North Korea, where there is no freedom of speech, and she joined Glenn to warn that America must not let this freedom go.

"Whenever authoritarianism rises, the first thing they go after is freedom of speech," she said.

Watch the video clip below from "The Glenn Beck Podcast" or find the full episode with Yeonmi Park here:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Most self-proclaimed Marxists know very little about Marxism. Some of them have all the buzzwords memorized. They talk about the exploits of labor. They talk about the slavery of capitalist society and the alienation caused by capital. They talk about the evils of power and domination.

But they don't actually believe what they say. Or else they wouldn't be such violent hypocrites. And we're not being dramatic when we say "violent."

For them, Marxism is a political tool that they use to degrade and annoy their political enemies.

They don't actually care about the working class.

Another important thing to remember about Marxists is that they talk about how they want to defend the working class, but they don't actually understand the working class. They definitely don't realize that the working class is composed mostly of so many of the people they hate. Because, here's the thing, they don't actually care about the working class. Or the middle class. They wouldn't have the slightest clue how to actually work, not the way we do. For them, work involves ranting about how work and labor are evil.

Ironically, if their communist utopia actually arrived, they would be the first ones against the wall. Because they have nothing to offer except dissent. They have no practical use and no real connection to reality.

Again ironically, they are the ultimate proof of the success of capitalism. The fact that they can freely call for its demise, in tweets that they send from their capitalistic iPhones, is proof that capitalism affords them tremendous luxuries.

Their specialty is complaining. They are fanatics of a religion that is endlessly cynical.

They sneer at Christianity for promising Heaven in exchange for good deeds on earth — which is a terrible description of Christianity, but it's what they actually believe — and at the same time they criticize Christianity for promising a utopia, they give their unconditional devotion to a religion that promises a utopia.

They are fanatics of a religion that is endlessly cynical.

They think capitalism has turned us into machines. Which is a bad interpretation of Marx's concept of the General Intellect, the idea that humans are the ones who create machines, so humans, not God, are the creators.

They think that the only way to achieve the perfect society is by radically changing and even destroying the current society. It's what they mean when they say things about the "status quo" and "hegemony" and the "established order." They believe that the system is broken and the way to fix it is to destroy, destroy, destroy.

Critical race theory actually takes it a step farther. It tells us that the racist system can never be changed. That racism is the original sin that white people can never overcome. Of course, critical race theorists suggest "alternative institutions," but these "alternative institutions" are basically the same as the ones we have now, only less effective and actually racist.

Marx's violent revolution never happened. Or at least it never succeeded. Marx's followers have had to take a different approach. And now, we are living through the Revolution of Constant Whining.

This post is part of a series on critical race theory. Read the full series here.

Americans are losing faith in our justice system and the idea that legal consequences are applied equally — even to powerful elites in office.

Rep. Devin Nunes (R-CA) joined Glenn Beck on the radio program to detail what he believes will come next with the Durham investigation, which hopefully will provide answers to the Obama FBI's alleged attempts to sabotage former President Donald Trump and his campaign years ago.

Rep. Nunes and Glenn assert that we know Trump did NOT collude with Russia, and that several members of the FBI possibly committed huge abuses of power. So, when will we see justice?

Watch the video clip below:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.