One more problem with this wealth inequity is that they invest it and can create bubbles. We've been taught that when it comes to investment more is better no matter what - trouble is, that is false. Like most things in life, sometimes too much of a good thing is a bad thing. Too much investment capital can cause 'casino economics' and bubbles. These are horribly destabilizing (ie. bad).
When the amount of investment dollars pouring in exceeds the inherent value - it turns into a casino and the investments become 'poker chips'. As long as cash flows in, the worth is determined solely upon what someone will pay - this often leads to a bubble. Like the dot-com bubble. Or the Southeast Asian Bubble. Or the commodities bubbles (rice, oil, etc). Or the housing bubble. One problem with these bubbles is, rice, oil and houses may be just poker chips to the top 1% but to the bottom 90% they are life support.
Destabilizing these sectors of the economy through casino-investment bubbles will make multitudes of desperate people. If America continues along this path we will see class warfare which will make the French revolution look like a pillow fight.
Indy Week • 302 E. Pettigrew St., Suite 300, Durham, NC 27701 • phone 919-286-1972 • fax 919-286-4274
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