The more dynamic the capitalistic expansion, the greater the disparity. It is from the disparity that we are going to get all the political upheaval for the next few years.
Sentiment: NEGATIVE
Economic progress, in capitalist society, means turmoil.
Concentration of wealth yields concentration of political power. And concentration of political power gives rise to legislation that increases and accelerates the cycle.
When the government takes more money out of the pockets of middle class Americans, entrepreneurs, and businesses, it lessens the available cash flow for people to spend on goods and services, less money to start businesses, and less money for businesses to expand - i.e. creating new jobs and hiring people.
The difference between rich and poor is becoming more extreme, and as income inequality widens the wealth gap in major nations, education, health and social mobility are all threatened.
Capitalism has shortfalls. It doesn't necessarily take care of the poor, and it underfunds innovation, so we have to offset that.
The extent of and continuing increase in inequality in the United States greatly concern me.
We will have bigger bureaucracies, bigger labor unions, and bigger state-run corporations. It will be harder to be an entrepreneur because of punitive taxes and regulations. The rewards of success will be expropriated for the sake of attaining greater income equality.
When inequality gets too extreme, then it becomes useless for growth, and it can even become bad because it tends to lead to high perpetuation of inequality over time and low mobility.
More of the same will just produce more of the same: less competitiveness, less growth, fewer jobs.
As capitalism falters, the rich move their money out of the country, violence increases, and politicians promising prosperity are elected.