Thursday, January 6, 2011

The Good and the Bad Plutocrats

http://blogs.reuters.com/felix-salmon/2011/01/04/how-to-deal-with-the-plutocrats/

An interesting analysis of plutocracy in America (via Manan). They are different from plutocrats in the past since many came from middle class backgrounds and made their fortunes the hard way. They are the winners and the others are the losers. There is no sympathy for those who lack the talent or the drive to win at the game. They recognize that globalization will benefit the multinationals and those who own their stock. The US middle class will experience a declining standard of living but a new middle class will develop in emerging economies and provide customers for multinational products and services. This could lead to class struggle and a rise in protectionism or they may go quietly into that dark night.

The good guys are those who produce real wealth like Steve Jobs and Bill Gates. The bad guys are those who got rich by moving money around without adding value. The solution is to raise taxes on the plutocrats. The good guys will be glad to pay the taxes and the bad guys will scream and threaten to move their game to a more plutocrat friendly environment. That would be good for us and bad for those places that welcome them.

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