If Warren Buffett and his ilk weren’t so hideously rich, main street America would be far more prosperous. I must hasten to add, of course, that this proposition has nothing to do with the zero-sum anti-capitalism of left-wing ideologues like Professors Piketty and Krugman.
Far from it. Real capitalism cannot thrive unless inventive and enterprenurial genius is rewarded with outsized fortunes.
But as I have demonstrated in Parts 1-4, Warren Buffett’s $73 billion net worth, and numerous like and similar financial gambling fortunes that have arisen since 1987, are not due to genius; they are owing to adept surfing on the $50 trillion bubble that has been generated by the central bank Keynesianism of Alan Greenspan and his successors.
The resulting massive redistribution of wealth to the tiny slice of households which own most of the financial assets is not merely collateral damage. That is, it is not the unfortunate byproduct of continuous and extraordinary central bank ‘stimulus’ policies that were otherwise necessary to keep the US economy off the shoals and the GDP and jobs on a steadily upward course.
This post was published at David Stockmans Contra Corner by David Stockman ‘ June 15, 2015.
Recent Comments