As I have previously predicted, the wealthy are starting to come around on inequality. Bill Gross, the most powerful bond manager of his generation and co-head of a $2 trillion investment management firm, has joined Nick Hanauer and other members of the 1 percent on the perils of this much inequality.
"We're not just experiencing a new Gilded Age, but a Bitcoin Age," says Mr. Gross, referring to the digital currency. "Artificial money, corporate K Street, and Wall Street interests are producing one world for the rich and an entirely different world for the working class," says the founder and co-chief investment officer of PIMCO in Newport Beach, Calif.
"It can't go on like this, either from the standpoint of the health of the capitalist system itself or the health of individuals and the family," he adds.
Why not, Bill?
"For the past 10, 20, 30 years, capital has moved away from labor and towards corporations and investors," Gross says. "I'm not sure capitalism can thrive in a system in which ... [labor] has a declining interest, in terms of percentage of the pie. Then ultimately the pie itself can't grow, because consumption can't be supported."
Exactly right. Capitalism can't thrive, most lose their percentage of the pie and the pie itself can't grow. And to think someone as wealthy and knowledgeable about finance as Gross is saying the same things I am...what on EARTH is going on??!!??:)
So what do we need to do?
When Gross highlighted many of these trends and others in an investment outlook piece posted on his company's website in late October, he told his peers that maybe they should be willing to pay higher taxes. More provocatively, he challenged the orthodoxy on capital gains taxes, saying they should be taxed at rates as high as that for income.
Oh no he DI INT!!!
Based on some of the other testimonials in the article, it seems like we have finally turned a corner and that makes me very happy.
One other part of this piece I found interesting...
Just over two years ago, growing inequality was the rallying cry of the "Occupy" movement. Its "we are the 99 percent" slogan has since become part of the cultural lexicon, and many of its members have moved on to fast-food strikes and protests calling for a higher minimum wage.
Again, just as I have been saying..