Bill Gross: Zero Percent Rates 'Distort' Capitalism

The video discusses the impact of central bank policies, particularly 0% and negative interest rates, on capitalism. It explores how these rates affect capital expenditures, GDP, and productivity. The speaker argues that these rates distort capitalism by reducing the incentive to invest, leading to a potential transformation of the economic system. The discussion includes perspectives from economists and highlights the challenges faced by capitalism in the current economic climate.

What is one effect of zero and negative interest rates on consumption?

• They reduce current consumption.

• They have no effect on consumption.

• They bring consumption forward.

• They delay future consumption.

How do zero interest rates affect corporate investment?

• They lead to higher capital expenditures.

• They decrease the willingness to invest.

• They have no impact on investment.

• They increase the willingness to invest.

What has been the trend in productivity numbers year on year?

• A significant increase

• A moderate increase

• A slight decrease

• A flat 0% increase

What is one argument against the idea that zero interest rates distort capitalism?

• They are a result of a savings glut.

• They are necessary for economic growth.

• They encourage savings.

• They have no impact on capitalism.

Why can't capitalism function effectively with zero interest rates?

• There is no return on short-term money.

• It leads to excessive investment.

• It causes inflation.

• It increases government debt.