Hedrick Smith: Three years ago, in his monumental work, "Capital in the Twenty-First Century," the French economist Thomas Piketty warned that "when the rate of return on capital exceeds the rate of growth of output and income, capitalism automatically generates arbitrary and unsustainable inequalities that undermine the meritocratic values on which democratic societies are based." ... As evidence, Piketty pointed to the tumor of concentrated wealth accumulated by America's super-rich 1 percent since the late 1970s while middle class incomes stagnated, even over a long period of growth.
As President Donald Trump and Speaker Paul Ryan never tire of asserting, the central economic lever in the Republican plan is the cut in the corporate tax rate from 35 percent to 20 percent. That will massively increase the after-tax profits of corporations, which have a habit of passing on 91 percent of their profits to Wall Street and super-rich investors.
In other words, this is a tax cut engineered to fuel what Piketty warns is the most dangerous dynamic of modern market capitalism skyrocketing gains for investors made possible by stingy pay to most people who work for a living.
Great job by Llewellyn King interviewing Hedrick Smith.
Does anyone really want to understand how wealth inequality began in America [hint: see Lewis Powell Memo], and how it's applied to today's situation? Then watch this interview -- video length is 29:00 -- fascinating stuff.
How we fix this mess is pretty much already right in front of all our noses -- do the opposite of what we've been doing the last 40 years.
Knowledge is for everyone. So get to work!
Millions of Americans just didn't understand what he meant by MAGA, he wants to put us back in the gilded age when rich folks were filthy rich and the rest of us were peons.
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