11 Jan 2019 home
Robert Reich describes a new money go-around in the US. The US government pays interest on its debt (money from taxpayers) and much of that money goes to "wealthy American investors — "people who park their savings in treasury bonds held by mutual funds, hedge funds, pension funds, banks, insurance companies, personal trusts, and estates". This is a switch, he writes, from decades ago when wealthy Americans were helping finance the federal government mainly by paying taxes — their tax rate far higher then than it is today. Reich favors tilting the flow of money from the wealthy back to the federal government (which left them still wealthy and comfortable). He complains that "the richest 1 percent of Americans now owns 40 percent of the nation’s wealth, which is more wealth than the bottom 90 percent put together."
Copyright © 2019 by Frank E. Smitha. All rights reserved.