“The extraordinary postcrash prosperity of the precrash superrich is altogether new in our history. Near-zero interest rates are a godsend to the wealthy, inflating their real estate, stock portfolios, bond portfolios, private equity holdings, and art collections. Middle-class and blue-collar Americans, meanwhile, haven’t made much progress, and many are worse off. Inequality has increased.”Read More
from The Wall Street Journal by Gregory Clark
“As a bizarre consequence of this pattern, African-Americans, who have low levels of net worth on average, are the social group for which inherited wealth represents the largest share of their net worth. Another odd implication is that inheritances tend to make overall wealth-holding more equal. Were inherited wealth to be completely abolished, the wealth of the poor would decline more than that of the rich. Inherited wealth is the great equalizer. Who knew?”
He avoided the accumulation of economic data, believing the cost of accumulating outweighed its value. He felt such data was used to enable economic planning which he opposed, and because it instilled a false sense of certainty about outcomes. Cowperthwaite governed from principles, not data.Read More
by Henry Oliner
The estate tax is less of a transfer from the rich to the poor than it is a transfer from one group of wealthy to other wealthy special interests. The great beneficiaries of estate taxes are tax lawyers and accountants, insurance companies, and wealthier businesses who use the pressure of the estate taxes to acquire other firms and grow larger.
The point is that the subject is much more complicated than most are willing to accept. Even the most respected journalists are seduced more by the political angle than accuracy and open mindedness. This travesty is multiplied thousands of times on the social media by the lazy who read for confirmation rather than information.Read More
from Foreign Affairs, What Kills Inequality- Redistribution’s Violent History By Timur Kuran In his 1982 book, The Rise and Decline of Nations, the economist Mancur Olson answered that question by arguing that rather than handicapping the economies of the Axis powers, catastrophic defeat actually benefitedRead More