Romney’s Former Bain Partner Makes a Case for Inequality

The commonly-cited argument from the 1% is that investment creates jobs, therefore the rich should be taxed less to encourage more investment. Investment also creates indirect improvements in the standard-of-living throughout society – as Conard states in the article linked. But how does one even begin to measure this, or whether the increasing divide is a sign of a correctly working economy? Others argue that spending back into the economy is disproportionate to the amount gained, and that jobs are created from a healthy ecosystem between consumers and businesses.

For an example of the latter, see Hanauer’s TED talk here: Banned TED Talk: Nick Hanauer “Rich people don’t create jobs”.

“Nearly every economist I spoke with said that Conard has too much faith in the market’s ability to reward only those who create real value. Conard, for instance, insists that even the dodgiest financial products must have been beneficial or else nobody would have bought them in the first place. If a Wall Street trader or a corporate chief executive is filthy rich, Conard says that the merciless process of economic selection has assured that they have somehow benefited society. Even pro-market Romney supporters take issue with this. “Ed ought to be more concerned about crony capitalism,” Hubbard told me.”

Romney’s Former Bain Partner Makes a Case for Inequality

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