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Sat Jul 4, 2020, 01:22 PM

How we got here- wealth inequality.

A good article from the NYT's - "The Neoliberal Looting of America", and how disconnected our Main Street economy is from Wall Street.

“It’s hard to separate what’s good for the United States and what’s good for Bank of America,” said its former chief executive, Ken Lewis, in 2009. That was hardly true at the time, but the current crisis has revealed that the health of the finance industry and stock market are completely disconnected from the actual financial health of the American people. As inequality, unemployment and evictions climb, the Dow Jones surges right alongside them — one line compounding suffering, the other compounding returns for investors.

One reason is that an ideological coup quietly transformed our society over the last 50 years, raising the fortunes of the financial economy — and its agents like private equity firms — at the expense of the real economy experienced by most Americans.

The roots of this intellectual takeover can be traced to a backlash against socialism in Cold War Europe. Austrian School economist Friedrich A. Hayek was perhaps the most influential leader of that movement, decrying governments who chased “the mirage of social justice.” Only free markets can allocate resources fairly and reward individuals based on what they deserve, reasoned Hayek. The ideology — known as neoliberalism — was especially potent because it disguised itself as a neutral statement of economics rather than just another theory. Only unfettered markets, the theory argued, could ensure justice and freedom because only the profit motive could dispassionately pick winners and losers based on their contribution to the economy."


https://www.nytimes.com/2020/07/02/opinion/private-equity-inequality.html?referringSource=articleShare

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Reply How we got here- wealth inequality. (Original post)
c-rational Jul 4 OP
Cary Jul 4 #1
I_UndergroundPanther Jul 4 #2
Bernardo de La Paz Jul 4 #3

Response to c-rational (Original post)

Sat Jul 4, 2020, 01:38 PM

1. The real tool for divesting the middle class was Reagan

The real tool for divesting the middle class was Reagan, creating a tax advantage for deferred compensation arrangements. That, and cutting the top rates. He created incentives to increase the value of equities at the expense of investing in labor and capital.

Too few seem to recognize this. Neoliberal indeed.

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Response to Cary (Reply #1)

Sat Jul 4, 2020, 01:52 PM

2. I dispise reagan

And his dog and pony show screwing us over.

He killed the fairness doctrine too. He paved the way to the suffering we face today..

We don't need any billionaires they are too expensive. And they parasite off us all. Along with corporations who pretend to be person's because of a damn clerical error these fuckers abuse to the hilt.

Fuck rich people,claw it back,all of it. We the people own it.

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Response to c-rational (Original post)

Sat Jul 4, 2020, 01:58 PM

3. Productivity, wages, inequality since 1970s (chart since 1950)




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