When looking on the increasing difference between the 0.1% and the rest the author makes the observation that the latter can't participate as accredited investors in some schemes. Everyone laughed about Bernakes helicopter money idea. However right now helicopters are circling the casinos where only the 0.1% have access. The solution is not to let everyone in. Maybe also the copters are running out of fuel. It is worth noting that a lot of hedge funds are getting clobbered these days and it is tempting to look for retail investors to take and hold the bag.
Lots of data in the article showing the differences between different branches of labor. Then an argument that unions increase pay differences. All correct. But ignoring the elephant in the room the "pay" difference between labor and capital. Regulation (like blanket leveling of price/labor in WWII), unions, merit based access to education and hard limits like death/estate tax are forces that help to restore a level playing field between labor and capital where everyone competes.
Capital enables investment and we need capital accumulation and probably on broader scale. Part of that capital needs to be accumulated from labor through saving and ingenuity. Inequality between jobs, industries and maybe even tax can be healthy. It provides signals collected by many looking to better themselves and others. Capital breeding capital and being increasingly the only source for investment means one sided and less effective steering of investments. It is not surprising growth slows when the Gini index becomes larger.
When looking on the increasing difference between the 0.1% and the rest the author makes the observation that the latter can't participate as accredited investors in some schemes. Everyone laughed about Bernakes helicopter money idea. However right now helicopters are circling the casinos where only the 0.1% have access. The solution is not to let everyone in. Maybe also the copters are running out of fuel. It is worth noting that a lot of hedge funds are getting clobbered these days and it is tempting to look for retail investors to take and hold the bag.
Lots of data in the article showing the differences between different branches of labor. Then an argument that unions increase pay differences. All correct. But ignoring the elephant in the room the "pay" difference between labor and capital. Regulation (like blanket leveling of price/labor in WWII), unions, merit based access to education and hard limits like death/estate tax are forces that help to restore a level playing field between labor and capital where everyone competes.
Capital enables investment and we need capital accumulation and probably on broader scale. Part of that capital needs to be accumulated from labor through saving and ingenuity. Inequality between jobs, industries and maybe even tax can be healthy. It provides signals collected by many looking to better themselves and others. Capital breeding capital and being increasingly the only source for investment means one sided and less effective steering of investments. It is not surprising growth slows when the Gini index becomes larger.