Richard Wolff Briefly: Inequality

Prof. Richard Wolff talks about the growing inequality in the distribution of income and wealth in the US over the last 30 years.

[DavidisDawei]

The average "American" will tell you there is no better system in the world...
so they work 4 months/year to pay their taxes and the rest to pay their mortgage and other debts.

[raymarti]

Recession and a collapse is a shakedown to squeeze wealth and property from the bottom to the top.

[fidgdet]

In the opinion of the demagogues like Richard Wolf, inequality in what they call the "distribution" of wealth and incomes is in itself the worst of all evils. Justice would require an equal distribution. It is therefore both fair and expedient to confiscate the surplus of the rich or at least a considerable part of it and to give it to those who own less. This philosophy tacitly presupposes that such a policy will not impair the total quantity produced. But even if this were true, the amount added to the average man's buying power would be much smaller than extravagant popular illusions assume. In fact the luxury of the rich absorbs only a slight fraction of the nation's total consumption. The much greater part of the rich men's incomes is not spent for consumption, but saved and invested. It is precisely this that accounts for the accumulation of their great fortunes. If the funds which the successful businessmen would have ploughed back into productive employments are used by the state for current expenditure or given to people who consume them, the further accumulation of capital is slowed down or entirely stopped. Then there is no longer any question of economic improvement, technological progress, and a trend toward higher average standards of living.