THE MEGA RICH KNOW BEST?

Ken Langone, a GOP mega-donor who co-founded Home Depot made a stupid remark like his fellow billionaires who can't seem to help themselves when they compare themselves to Jews in Hitlers' Germany in the 1930's. They misconstrue the discussion about wealth inequality. They think it has to do with “envy or jealousy." All it has to do with is that the vast majority of people are being left behind do to no fault of their own.

Here is what they really think and what they want. This is from a memo written by Citigroup who by the way received 45 billion dollars from the government.

`If we are right, that the rich are going to keep getting richer over the coming years Despite being in great shape, we think that global capitalists are going to be getting an even greater share of the wealth pie over the next few years, as capitalists benefit disproportionately from globalization and the productivity boom, at the relative expense of labor. For the poorest in society, high gas and petrol prices are a problem. But while they are many in number, they are few in spending power, and their economic influence is just not important enough to offset the economic confidence, well-being and spending of the rich. We expect the global pool of labor in developing economies to keep wage inflation in check, and profit margins rising – good for the wealth of capitalists, relatively bad for developed market unskilled/outsource-able labor. This bodes well for companies selling to or servicing the rich."

Furthermore, the rising wealth gap between the rich and poor will probably at some point lead to a political backlash. Whilst the rich are getting a greater share of the wealth, and the poor a lesser share, political enfranchisement remains as was – one person, one vote. At some point it is likely that labor will fight back against the rising profit share of the rich and there will be a political backlash against the rising wealth of the rich. This could be felt through higher taxation (on the rich or indirectly though higher corporate taxes/regulation) or through trying to protect indigenous laborers, in a push-back on globalization – either anti-immigration, or protectionism. We don’t see this happening yet, though there are signs of rising political tensions.

The rich know exactly what they are doing and why. The sad thing is that many many people buy into this. They are so easily brainwashed against their better interests.