What happens when a capitalist says that capitalism is broken? Does this catch you attention?
It should especially when that capitalist is Ray Dalio, one of the most successful hedge-fund managers there is.
He came out and said the system is broken. The present political divide is not going to end well. The problem, as he sees it, is that conservatives do not know how to share the pie whlie liberal are clueless how to grow it. That was the problem with communism. It worked well on the equality front yet was a dead system. There was no growth.
In the West, the opposite problem exists. The left is up in arms because of the income inequality that keeps growing. Dalio believes this shows how the right is tone deaf when it comes to sharing the wealth. They know how to grow it, just in a manner that favors the upper end.
In his view, the political divide is going to end very poorly. If this is not addressed, we are going to see the split grow which will move towards a violent outcome. The right and left in politics today do not hear each other. It is full blown attack.
Here is the crux of the problem:
Most people in the bottom 60% “are poor,” he writes. About 40% of all Americans would struggle to raise $400 in the event of an emergency, he says, citing a recent Federal Reserve study. The childhood poverty rate stands at 17.5% and has not shown meaningful improvement in decades. That, in turn, leads to poor academic achievement, low productivity and low incomes.
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