Most people know that wealth is distributed somewhat unevenly in the United States. Uneven distribution of wealth in a capitalist society is natural and when reasonable makes perfect sense. We want people to have an incentive to work harder and a good incentive for many people is a larger financial reward. But how large of an uneven distribution is reasonable? This video does an excellent job of explaining what has happened to the concentration of wealth in America. It shows clearly ho what people think is reasonable is not even remotely close to what we have today.

While the attached video is great on explaining what is going on with the concentration of wealth in the U.S., is a little weak on what the consequences are. From my perspective the consequences of enormous concentrations of wealth in the hands of a few including, most significantly: (i) the weakening of the economy as large segments of the population become less and less able to afford to consume the products and services they are producing; (ii) the undermining of the political system as money pours into it and decisions are made for corrupt purposes rather than for reasons based on wise public policy; and (iii) the ability of citizens to obtain factually accurate information is undermined as a result of the control of the media (either through ownership, advertisements or sponsorship of “Think Tanks” with predetermined answers to issues) by a small group of wealthy individuals.

The obvious solution to this problem is much higher estate taxes for the very wealthy. A higher income tax for very high income people also makes sense. It is critical that money that is literally sitting on the sidelines of the economy right now get back into the economy where it can work to create jobs. One of the major problems with very large concentrations of wealth is simply that rich people simple can’t spend their money fast enough and on things that employ large numbers of people.

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Comments
  1. Mike says:

    Good video followed by your insightful commentary. Thanks.

    Like

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