Posted 9 years ago on Oct. 21, 2011, 8:20 p.m. EST by NielsH
This content is user submitted and not an official statement
There is too much talk about individual rich people, which takes the discussion away from the problems arising from too skewed an income distribution.
Over the last thirty years nearly all economic growth has gone to a small segment of society. This is not only unfair (the small segment is not solely responsible for the economic growth), it is also bad for the economy.
Too much concentration of wealth creates a tightly coupled system, which eventually becomes too big to fail.
Too much concentration of wealth also leads to an exorbitant growth of the financial sector, which doesn't add to productivity. I am not saying we don't need a financial sector, but due to concentration of wealth, it is bigger than is good for the economy.
Finally, too much concentration of wealth reduces demand. It is almost impossible not to spend $20,000/year, but it is hard to spend $1 billion/year. Putting money into a rising gold-price may help investors to park their money safely for a while, but it slows down the economy.
Forget about deserving rich vs. undeserving rich, that's just a red herring. The problem is NOT individual rich people, but an income distribution that hinders economic growth, making us all poorer.
It will in fact even catch up on those 1%. If the economy stagnates further they will lose money too. So it's in their own self-interest to return to a reasonable income distribution.