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View Diary: Book Review: Kevin Phillips' "Bad Money" (143 comments)

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  •  You appear to be misunderstanding Mr Phillips (2+ / 0-)
    Recommended by:
    alizard, karl pearson

    I believe that a reading of Mr. Phillips' books (I have read Wealth and Democracy and a couple others but not this one yet) would reveal that consumer debt is not the problem.  It is meerly a symptom.  

    I respectfully take issue at the use of your phrase "...a financial meltdown at the top..."  I believe that this phrase implies wealth creation is a top-down phenomenon.  I believe Mr. Phillips' thesis is that wealth creation depends upon what is commonly called bubble up rather than trickle down economics.

    Based upon such a progressive approach to economics would imply the need for changes in the tax code that reverses the effect of the extreme concentration of wealth.  If you want, call it redistribution of wealth.  One such change in the tax law would be increasing the top estate tax rate to something more in line with the top tax rate during the country's greatest period of wealth creation - the late 1940's through the 1960's.

    Currently many of the people that I know in the financial industry are doing quite well.  Why shouldn't they be?  They sold off their junk loans to unsuspecting investors.  Unfortunately, some of these unsuspecting investors are union pension funds and holders of 401K's.

    Will Congress and President Obama be courageous enough to change the tax code to promote a more equitable distribution of the national wealth?  We can only hope.

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