Sustainable Capitalism And Why Inequality Matters

This article uses the recent settlement between banks, which were guilty of fraud, agreed to a civil settlement and fines. Some argue that criminal charges should have been made and that the banks will not comply with the behavior changes forced upon them in the settlement. This is interpreted as an example of unsustainable capitalism. It is made possible by income inequality which provides resources which can be used to influence government behavior. The result is a a two tier system of law enforcement which makes capitalism in its pure form unsustainable. We are left with crony capitalism which undermines confidence in government. The obstacles to reform increase along with inequality.