The Price of Greed

The Price of Greed (Photo credit: Wikipedia)

In his book A Failure of Capitalism, Richard Posner denies that greed played a part in causing the Great Recession. I disagree. First let’s define greed as milking the system for excessive and undeserved income, as Mitt did with his 401K north of $100 million. In my opinion, no one is worth or deserves $100s millions or billions in income or net worth. It is true that $1 million doesn’t go as far as it used to, but $1 billion certainly does. Nations that don’t mimic our income inequality do not have the social problems that we do. We won’t solve all our problems with greater income equality, but we will lessen their severity as nations in Scandinavia prove.

The greatest danger of vast differences in income equality lies in the threat to our democratic institutions. Some people with vast wealth will use that wealth to buy favors from government that will increase their wealth at the expense of the rest of us. Louis Brandeis was better able to explain the pernicious effect of income inequality better than I can. He said that we could have democracy or vast concentrations of wealth, but not both at the same time. Please see Freedom and Supreme Court

Government waste

Ratio public expenditure on GDP by country in ...

Ratio public expenditure on GDP by country in Europe, according to the most recent Eurostat data. This map will by updated as much as possible. Legend : maroon > 55%, red 50-55%, orange 45-50%, yellow 40-45%, green 35-40%, blue 30-35%, purple < 30% (not presently used). (Photo credit: Wikipedia)

Some of the current media reporting is about alleged government waste where the amount in question is relatively small, under $1 million. While that number may seem large to you or me, it is totally insignificant when compared to total government spending. To me, it seems a total waste of time to focus on the small expenditures when there are much larger frauds out there to expose, such as fraud by Medicare providers and waste by defense contractors. It is almost as if the corporate media has decided to provide a smoke screen for the GOP during this election season.

Please see Fools and tools | Fools and tools part 2