3 ms·
"I think the key to the answer is the large corporation. The period of flattening coincides with the heyday of the large corporation. Large corporations tend t
by Steko 15y ago
"I think the key to the answer is the large corporation. The period of flattening coincides with the heyday of the large corporation.
Large corporations tend to decrease economic inequality. "
I think this is off the mark. This time period corresponds directly to the rise of the financial industry which is mostly independent of firm size.
- dogwelder 15y agoI'm inclined to agree. It's striking how the graph showing the wealth flow to the top 1% correlates with changes to the capital gains tax rate. There are benefits to a low cap gains rate, but below a certain level, it seems associated with slower growth, more of the income flowing to the top, and more volatility and crashes. You can make the argument it's goosing the economy to concentrate more and more capital into a single point of failure, a deeply interconnected network of financial firms. And you gotta wonder what the economy would look like, if Wall Street hadn't been siphoning off so much of the brains and capital to play card tricks. It might otherwise have gone towards, say, innovations in healthcare, transportation, energy, even domestic manufacturing.
- rmc 15y agoI thought the financial industry started in Amsterdam in the late 1600s? What happened between 1700 and 1950?