Cheap credit is a great boon to the wealthy and a path to debt-serfdom for everyone else.
by Charles H. Smith, Of Two Minds:
The ever-widening chasm between the wealthy and the “rest of us” has generated any number of explanations for this deeply troubling phenomenon. We can start with capitalism, which is based on competition for innovations, processes, markets, labor and capital. The more successful participants will naturally garner more profit and premium, leaving less for those who don’t control assets and skills that carry high premiums in the marketplace.
But this fundamental source of inequality doesn’t explain why wealth and income inequality was considerably lower in previous eras of economic expansion.
Many observers rightly point to the capture of federal regulatory bodies by corporations and the transition from an industrial economy with plentiful low-skill, high-wage jobs to a post-industrial knowledge-based service economy as causes.
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