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."

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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:

Faced with an oppressive government that literally burned people at the stake for printing Bibles, America's original freedom fighters risked it all for the same rights our government is starting to trample now. That's not the Pilgrim story our woke schools and corporate media will tell you. It's the truth, and it sounds a lot more like today's heroes in Afghanistan than the 1619 Project's twisted portrait of America.

This Thanksgiving season, Glenn Beck and WallBuilders president Tim Barton tell the full story of who the Pilgrims really were and what we must learn from them, complete with a sneak peek at the largest privately owned collection of Pilgrim artifacts.

Watch the video below

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Saule Omarova, President Joe Biden's nominee for comptroller of the currency, admitted she wants to fight climate change by bankrupting coal, oil, and gas companies. Alarmingly, Biden's U.S. special climate envoy, John Kerry, seemed to agree with Omarova when he said "by 2030 in the United States, we won't have coal" at the COP26 conference in Glasgow, Scotland, earlier this month. But that could end in massive electrical blackouts and brownouts across the nation, BlazeTV host Glenn Beck warned.

Carol Roth, author of "The War On Small Business," joined "The Glenn Beck Program" to explain what experts say you can do now to prepare your family for potential coming power outages.

"It's interesting. Usually when I go out and talk to experts in areas that are not 100% core to my area of expertise and I say, 'I would like to give you credit.' Usually I get, 'OK, here's how you credit me.' But everyone is like, 'No, no. Let me tell you what happened, just don't use my name.' And this is across the country," Roth said. "This isn't just a California issue, which obviously [California] is leading the nation. But even experts out of Texas, people who are monitoring the electric grid are incredibly concerned about brownouts or blackouts now, already. So forget about 2030."

"You want to have a backup source of power," she continued. "Either a propane, diesel, or combo generator is something that you're going to want to have. Because in a state, for example like Texas, I'm told that once the state loses power, it will take a minimum of two weeks to restore plants back to operations and customers able to use grid power again. So, this isn't something that we've got nine years or whatever to be thinking about. We should be planning and preparing now."

Watch the video clip below to catch more of this important conversation:

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This year marks the four hundredth anniversary of the first Thanksgiving celebrated by the Pilgrims and their Wampanoag allies in 1621. Tragically, nearly half of the Pilgrims had died by famine and disease during their first year. However, they had been met by native Americans such as Samoset and Squanto who miraculously spoke English and taught the Pilgrims how to survive in the New World. That fall the Pilgrims, despite all the hardships, found much to praise God for and they were joined by Chief Massasoit and his ninety braves came who feasted and celebrated for three days with the fifty or so surviving Pilgrims.

It is often forgotten, however, that after the first Thanksgiving everything was not smooth sailing for the Pilgrims. Indeed, shortly thereafter they endured a time of crop failure and extreme difficulties including starvation and general lack. But why did this happen? Well, at that time the Pilgrims operated under what is called the "common storehouse" system. In its essence it was basically socialism. People were assigned jobs and the fruits of their labor would be redistributed throughout the people not based on how much work you did but how much you supposedly needed.

The problem with this mode of economics is that it only fails every time. Even the Pilgrims, who were a small group with relatively homogeneous beliefs were unable to successfully operate under a socialistic system without starvation and death being only moments away. Governor William Bradford explained that under the common storehouse the people began to "allege weakness and inability" because no matter how much or how little work someone did they still were given the same amount of food. Unsurprisingly this, "was found to breed much confusion and discontent."[1]

The Pilgrims, however, were not the type of people to keep doing what does not work. And so, "they began to think how they might raise as much corn as they could, and obtain a better crop than they had done, that they might not still thus languish in misery."[2] And, "after much debate of things" the Pilgrims under the direction of William Bradford, decided that each family ought to "trust to themselves" and keep what they produced instead of putting it into a common storehouse.[3] In essence, the Pilgrims decided to abandon the socialism which had led them to starvation and instead adopt the tenants of the free market.

And what was the result of this change? Well, according to Bradford, this change of course, "had very good success; for it made all hands very industrious, so as much more corn was planted than otherwise would have been."[4] Eventually, the Pilgrims became a fiscally successful colony, paid off their enormous debt, and founded some of the earliest trading posts with the surrounding Indian tribes including the Aptucxet, Metteneque, and Cushnoc locations. In short, it represented one of the most significant economic revolutions which determined the early characteristics of the American nation.

The Pilgrims, of course, did not simply invent these ideas out of thin air but they instead grew out of the intimate familiarity the Pilgrims had with the Bible. The Scriptures provide clear principles for establishing a successful economic system which the Pilgrims looked to. For example, Proverbs 12:11 says, "He that tills his land shall be satisfied with bread." So the Pilgrims purchased land from the Indians and designated lots for every family to individually grow food for themselves. After all, 1 Timothy 5:8 declares, "If anyone does not provide for his relatives, and especially for members of his household, he has denied the faith and is worse than an unbeliever."

We often think that the battle against Socialism is a new fight sprouting out of the writings of Karl Marx which are so blindly and foolishly followed today by those deceived by leftist irrationality. However, America's fight against the evil of socialism goes back even to our very founding during the colonial period. Thankfully, our forefathers decided to reject the tenants of socialism and instead build their new colony upon the ideology of freedom, liberty, hard work, and individual responsibility.

So, this Thanksgiving, let's thank the Pilgrims for defeating socialism and let us look to their example today in our ongoing struggle for freedom.

[1] William Bradford, History of Plymouth Plantation (Boston: Massachusetts Historical Society, 1856), 135.

[2] William Bradford, History of Plymouth Plantation (Boston: Massachusetts Historical Society, 1856), 134.

[3] William Bradford, History of Plymouth Plantation (Boston: Massachusetts Historical Society, 1856), 134.

[4] William Bradford, History of Plymouth Plantation (Boston: Massachusetts Historical Society, 1856), 135.

Like most people, biologist and science journalist Matt Ridley just wants the truth. When it comes to the origin of COVID-19, that is a tall order. Was it human-made? Did it leak from a laboratory? What is the role of gain-of-function research? Why China, why now?

Ridley's latest book, "Viral: The Search for the Origin of COVID-19," is a scientific quest to answer these questions and more. A year ago, you would have been kicked off Facebook for suggesting COVID originated in a lab. For most of the pandemic, the left practically worshipped Dr. Anthony Fauci. But lately, people have been poking around. And one of the names that appears again and again is Peter Daszak, president of EcoHealth Alliance and a longtime collaborator and funder of the virus-hunting work at Wuhan Institute of Virology.

If you watched Glenn Beck's special last week, "Crimes or Cover-Up? Exposing the World's Most Dangerous Lie," you learned some very disturbing things about what our government officials — like Dr. Fauci — were doing around the beginning of the pandemic. On the latest "Glenn Beck Podcast," Glenn sat down with Ridley to review what he and "Viral" co-author Alina Chan found while researching — including a "fascinating little wrinkle" from the Wuhan Institute of Virology called "7896."

Watch the video clip below or find the full interview with Matt Ridley here:

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