Even Bloomberg Cites Insiders for the Gross Income Gap
|August 12, 2014||Posted by Staff under Editorials|
This 2014 excerpt of BloombergView, Aug 4, by Edward D. Kleinbard
Some say inequality is an inevitable byproduct of free markets. Others that inequality is greatly overstated. Both claims are harmful and deceptive.
Some defend this as a consequence of rising demand for highly educated and exceptionally talented individuals to deal with technology and globalization. So one would expect similar rates of inequality growth everywhere. Instead, one sees the surge in U.S. inequality.
A more complete explanation includes “rent seeking” — shortcuts to wealth available to some, without creating new economic value, like a tax break. The CEO, lobbyist, and lawmakers are masters of rent-seeking. Much of what went on in the finance industry in the early 2000s was rent seeking. Vast fortunes can buy special relationships and privileges with government, which further act to turn today’s great fortunes into dynasties.
Ed. Notes: Like they say, the key to wealth is (a) to privatize your society’s wealth (dip into the public treasury and into the vast spending for assets never produced, such as land) and (b) to socialize your costs (make others pay for the damage you do, such as pollute). Government, of course, should reverse that. It should make polluters pay. And it should redirect our spending for nature and privilege into the public treasury then back out again as dividends for the members of the society. Extra bonus: doing that let’s you repeal counterproductive taxes and ruinous subsidies. It’s called geonomics and it’s good to see Bloomberg catching on.