Originally Posted by Loneiguana
Because it limits economic freedom, upward mobility, keeps people confined to the class they were born in, destroys the notion of being better off than your parents (average american income has gone down). You know, generally ruins the American Dream.
A capitalistic economy requires the movement of wealth through the system. A capitalistic economy requires the movement goods. If wealth is concentrated and monopolized at the very top, then that money is doing nothing for the overall economy. Its not moving through the system. It turns it from capitalism to a sorta Corporate Feudalism.
I have two questions for you:
1) Why would high levels of wealthy inequality be good?
2) If the top percent have increased their share of the economic pie, why haven't we seen any sort of trickle down?
How does it do any of that?
For example, the top target of people who seem to think income inequality is bad is our tax code. Specifically, those people claim that our tax code isn't progressive enough and that the rates on investment income (cap gains and dividends) are too low. You're telling me that the problem with inequality is a lack of upward mobility. Increasing progressivity and increasing rates on investment income both hinder upward mobility.
So again, what's the problem with income inequality?
And since upward mobility is important to you, do you agree that we should flatten the tax code further and reduce taxes on investment income instead of increase it?
"Well, it is one thing for Bill Clinton to say, I feel your pain. It is another thing for Barack Obama to say I feel your pain that I have caused." - George Will