in my opinion, the way to "fix" this is to start taxing ALL income and capital gains of over $150,000 at 20% scaling up to 35% for when somebody is making more than a half million dollars per annum.
This would be more trouble than its worth and confuses real wealth with financial wealth. Modern fiat money is essentially a digital currency controlled by the banking system and congress. Its like bitcoin with Congress and the banks authoring the algorithm. It follows that quantity of money is never a problem in a fiat money system, its the algorithm for its creation/allocation that is the problem.
Economics is about maximizing consumption and the goal should be to give all people the opportunity to consume what they need. Real wealth = the goods and services that are produced and consumed in the economy and ultra rich people do not consume very much of it. Yeah, they hoard financial assets -thereby hurting the economy- which tends to reduce circulation of money which leads to reduction of income for everyone else. Yes, this income leak can be solved by taxation and re-distribution. But this is politically painful. Maybe it would be better to give on to Caesar what is Caesear's and let the rich keep their hordes because money sitting in a bank doing nothing is irrelevant. Would be better to focus on distributing wealth to the middle and lower classes on a much larger scale through government spending and reduction of taxes.
Proposals
1) Payroll taxes to be paid by Fed for workers.
2) Income or Job Guarantee program with living wage and full benefits.
3) Massive federal infrastructure spending on a WWII like scale. Triple down on the deficit.
4) Regulate, Regulate , Regulate. Get money out of politics.
5) Online/Mobile voting system mandate.
6) De-financialize the economy: Return banking system to pre 1980's model where banks make loans and hold them. Strict controls on financial leverage. No borrowing using financial assets as collateral.
7) Tax rentier income higher than earned income.
Economics is about maximizing consumption and the goal should be to give all people the opportunity to consume what they need. Real wealth = the goods and services that are produced and consumed in the economy and ultra rich people do not consume very much of it. Yeah, they hoard financial assets -thereby hurting the economy- which tends to reduce circulation of money which leads to reduction of income for everyone else. Yes, this income leak can be solved by taxation and re-distribution. But this is politically painful. Maybe it would be better to give on to Caesar what is Caesear's and let the rich keep their hordes because money sitting in a bank doing nothing is irrelevant. Would be better to focus on distributing wealth to the middle and lower classes on a much larger scale through government spending and reduction of taxes. Proposals 1) Payroll taxes to be paid by Fed for workers. 2) Income or Job Guarantee program with living wage and full benefits. 3) Massive federal infrastructure spending on a WWII like scale. Triple down on the deficit. 4) Regulate, Regulate , Regulate. Get money out of politics. 5) Online/Mobile voting system mandate. 6) De-financialize the economy: Return banking system to pre 1980's model where banks make loans and hold them. Strict controls on financial leverage. No borrowing using financial assets as collateral. 7) Tax rentier income higher than earned income.