Mind the Gap; Rich are Getting Richer: Rest of Population Getting Less of Economic Growth & Wealth, Creating Gap; Universal Basic Capitalism as Fix

ECONOMY 

SITUATION:
income & net worth gap between Investment & Working Class is increasing;
So need for Working Capitalist like ESOPS  & Universal Basic Capital System.
Universal basic capital is the best hope of closing the income inequality gap.
Current efforts to close the financial inequality gap don’t go far enough

SIGNIFICANCE:
Trend is those who own capital are capturing an ever-greater share of the pie.
Those who live paycheck to paycheck further exacerbated by the pandemic,
Meantime, shareholder fortunes of Big Tech soar as overall economic grows.
Growth of the Economy dropped nearly 33% with Pandemic or the past year.
Innovations of digital capitalism are increasingly divorcing employment & income
from productivity growth & wealth creation. 

SOLUTIONS:
Forward-looking policy for the digital age would produce labor capitalists.
Thus more people able to fairly capture the gains of future growth in the economy.
Thus, addressing the current shortfall in retirement savings requires a plan.
There is a necessity to expand access to retirement savings plans universally.
So that all workers can begin to quickly and easily save for their future.
Economy would seek to widely spread ownership of wealth-generating assets.
Diminish growing gap between those who possess capital & those who earn living only through wage labor.
Spread ownership of wealth-generating assets to diminish the growing gap
Balance wealth of those who possess capital & those who earn living through wage labor.
Financial assets for retirement of workers would reap growing returns from investments as they do for wealthy

SEZ:
” By allowing everyone to be a capitalist, it would generate more buy-in within a system that today is being torn apart by inequality” – Ray Dalio

“This idea of pre-distribution through universal basic capital is absolutely critical going forward. It would reduce the burden that would
be put on taxation, on redistribution, while augmenting people’s assets.”— Jos Stiglitz

STATS:
From 1983 to 2016, share of aggregate wealth going to upper-income families increased from 60% to 79%,.
Largely due to the growing value of their financial holdings, [2020 Pew study]
Share held by middle-income families has been cut nearly in half.
Falling from 32% to 17%. Lower-income families had only 4% of aggregate wealth in 2016.
40% of Americans don’t have resources to meet an unexpected $1,000 expense.

SOURCES:
New Deal 2.0: Make Labor Capitalists- https://www.noemamag.com/new-deal-2-0-make-labor-capitalists/

NATHAN GARDELS, editor-in-chief of Noema Magazine

To Understand universal basic capitalism: –https://berggrueninstitute.medium.com/universal-basic-capital-wealth-accumulation-that-makes-sense-for-the-21st-century-3bb7b1271a62)

 

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