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Thursday, June 27, 2013

Why The Status Quo Is Doomed

http://www.zerohedge.com/news/2013-06-27/guest-post-why-status-quo-doomed

This agenda makes three implicit assumptions:
1. Inflation is OK as long as the economy and household wealth expand at a rate that exceeds inflation
2. Increasing debt is OK as long as income and assets both grow faster than debt
3. Wealth/income inequality is OK as long as the wealth/income of the bottom 90% is expanding at the same rate as the top 10%
In other words, if most of the wealth generated by growth flows to the top 10% (who coincidentally fund 99% of political campaigns) that's OK, as long as enough "trickles down" to the lower 90% to boost their wealth/income by an equivalent percentage. (The top 10% actually own 83% of the wealth, and the top 1% own 43%) 


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