From Robert Reich on Facebook
Maybe they're starting to realize that driving customers further down the economic ladder is not good for business. Who will buy their products if no one can afford them? IMO, the growing realization comes a day late and a dollar short. A bad storm is coming.
From Robert Reich on Facebook: (www.facebook.com/RBReich)
Robert Reich: Are the privileged and powerful finally starting to get it? Former Fed chief Alan Greenspan said yesterday to the National Association of Business Economists: “I consider income inequality the most dangerous part of what’s going on in the United States. You can see the deteriorating impact of that on our current political system, and you cannot talk about politics without talking about its impact on the economy.”
Bill Gross, co-founder and co-chief investment officer of Pacific Investment Management Company, the biggest bond-trading firm in America, wrote in one of his recent investment letters that the share of total pretax income going to America’s top 1% more than doubled from 10% in the 1970s to 20% today, and that his wealthy clients did not “create that wave. You rode it. And now it’s time to kick out and share some of your good fortune by paying higher taxes or reforming them to favor economic growth and labor, as opposed to corporate profits and individual gazillions.”
Is the business class beginning to understand that as long as 95% of the economy’s gains go to the top 1%, the rest of America doesn’t have the purchasing power to get the economy out of first gear? Or are they afraid that if prosperity isn’t more widely shared they'll face a political backlash against concentrated wealth, corporate power, free trade, and global capitalism?
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