Human Traits Essential to Capitalism

[farnamstreet]

Thought some of you would like this

 

Yale economist Robert Shiller argues that rising inequality in the US was a major cause of the recent crisis, and little is being done to address it.

 

http://myinvestingnotebook.blogspot.com/2011/01/human-traits-essential-to-capitalism.html

[onyx1]

His argument is that is that the income gap caused people to borrow above their means to keep up with the material gains of others and sooth their resentment of the rich.  This resentment was no doubt fueled by the same political class that was offering relief in the form of easy credit.  The political class, of course, sought payback in the form of re-election.  His answer?  Reduce the income gap!  If the author fails to include how lack of personal responsibility contributed to the crisis, I cannot take his argument and solution seriously.

[twacowfca]

His argument is that is that the income gap caused people to borrow above their means to keep up with the material gains of others and sooth their resentment of the rich.  This resentment was no doubt fueled by the same political class that was offering relief in the form of easy credit.  The political class, of course, sought payback in the form of re-election.  His answer?  Reduce the income gap!  If the author fails to include how lack of personal responsibility contributed to the crisis, I cannot take his argument and solution seriously.

 

 

Eliminating the lowest income tax bracket would be a highly productive way to do this.  Reduced tax collections could be balanced by eliminating tax dodges in the current law and unproductive subsidies.