Why Washington Won’t Do Anything About Income Inequality

We spend a lot of time looking at the section of national income that goes to the top 1%.

That’s interesting, but the fact that the 1% pays a much larger share of tax is a lot more significant.

Washington, DC doesn’t want to attack “Too big to fail” banks because their taxes pay bureaucrats’ salaries…


TRANSCRIPT:

Hello All. So why doesn’t the US government do anything about income inequality? The answer is simple. The US government is in on it, and doesn’t have any interest in changing it.

As I’ve pointed out elsewhere, I don’t care too much about income inequality, but I care a lot about our dangerous financial industry and the insane rewards that it brings to an undeserving few. If we figure out a way to rein in Wall Street income inequality will plummet. But that’s not going to happen under any Democratic or Republican policy that has been proposed.

We have been hearing a lot lately about the section of national income that goes to the top 1%. It’s pretty staggering. But do you know how much of the US government all that financial wealth pays for? All that military adventuring? Fun new healthcare ideas? All that sexy new Washington, DC real estate development? It’s paid for by our insane financial sector. It isn’t just financial wealth, but Wall Street accounts for a disproportionate amount of the growth in both the economy and tax receipts over the past 30 years.

That’s why Elizabeth Warren is basically talking to herself up there when she takes on the banks. Nobody in Washington, DC who values their job really wants to touch the main driver of income inequality in the United States. Taxes from bankers pay their salaries. Under the current system, the finance industry is safe as houses.

That was a poor choice of words.

People talk a lot about how government is for sale. Our system of campaign finance may be a scandal, but it’s nowhere near as significant as these simple figures. Government favors the rich, because the rich pay for government. Maybe higher taxes on the rich make sense, but they won’t change the fundamentals of this system at all. The higher taxes are, the more dependent Washington, DC gets on Wall Street, and the less interested Washington, DC is in questioning Wall Street’s privileges.

We absolutely can change this system, but we can’t do it by voting for the Republicans or the Democrats. We have to scare them into changing things, and the only way to do that is to vote for third party candidates. Yesterday I published an essay for the Amazon Kindle on exactly this topic. I’d be honored if you’d check it out. Thanks for watching, and please subscribe.

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