I'm usually not a fan of Brookings articles. They are okay, but this one is actually pretty good. In the end the author calls for a couple things. His goal is

I'm usually not a fan of Brookings articles. They are okay, but this one is actually pretty good. In the end the author calls for a couple things. His goal is to increase competition in ALL aspects of the economy, not just the low end, and he rightfully points out some of the paternalism of current laws have helped create this economic gap. 1- Open up all investment opportunities for everybody. Get rid of the wealth and income requirements to invest in certain vehicles. The one he points to is hedge funds where by law you need to be an accredited investor: $200k income in last two years and expect the same this year ($300k if married) and a net wealth (excluding your home) of at least $1mm. This law was made because the government literally thinks that poor people are too stupid to invest and gauge risk. 2- Slim down the need for professional associations. While many like to decry the necessity for a hair braiding license and see the stupidity in that, fewer are willing to see the same issues with, for example, the onerous and unnecessary qualification needed to be a nurse or home care provider. These associations create artificial barriers to entry that artificially boost wages. These are the true rent seekers. Oddly enough, a couple of the groups he decides to call out, such as the financial services industry are the most egalitarian. Anybody can be a trader, even high school and college drops outs. My industry has no cap on the number of traders that work on the floor. We have no special club. Sure you need to get your Series exams if you work for a broker/dealer, and that can be a pain, but that the government making you do it. Most non B/D firms encourage you not to take the exams if you don't need to. For all the crap people give working in finance, it really is based a lot of hard work and skill.