So True

Reader comment on: Summers on Inequality

Submitted by ben (United States), Nov 21, 2011 07:55

He is right. Those who actually create value, invent things, learn new ways of producing that are more efficient benefit us all. The Financial industry would not fall into this group though, and they account for a huge proportion of the growing income equality. They cooked up novel financial products which resulted in the collapse of 2008, and yet they still take home boatloads of money. This is the core of what Occupy Wall Street is about in my mind, not anarchism. There is a disconnect between people who actually create value and those who get rewarded. This disconnect is a function of a political system that coddles the wealthiest who donate the most to campaigns. Until the umbilical cord between wealth and politicians is severed, we cannot address the deep challenges this country faces including the deficit, income inequality or growth.

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The Future of Capitalism replies:

It's not such a clear-cut distinction. Look at Warren Buffett, for example. He makes real things — See's Candies, Dairy Queen Blizzards — but he's also a financial engineer who invests in derivatives, uses the float from his insurance companies to finance his acquisitions, etc. If you look at the Forbes 400 list of the richest, there aren't a lot of Bear Stearns or Lehman Brothers mortgage-backed securities guys on there. A lot of what the investment bankers do is run around sucking up to the people in the "non-financial" economy trying to get them as clients.

Other reader comments on this item

Title By Date
⇒ So True
[w/response] [142 words]
benNov 21, 2011 07:55
I agree completely [122 words]benNov 21, 2011 11:05
Future of Capitalism non-responsive response [179 words]Fast EddieNov 21, 2011 11:31

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