I’m really grateful Angus Deaton was willing to come out and state the obvious. That is, the fact this economy isn’t what we’ve been told. In reality, it’s largely a rent-seeking based system, in which a meaningful percentage of the people who earn the most money are not only not adding value to society, they’re in fact parasites feeding off the general public.
Market Watch reports:
Income inequality is not killing capitalism in the United States, but rent-seekers like the banking and the health-care sectors just might, said Nobel-winning economist Angus Deaton on Monday.
If an entrepreneur invents something on the order of another Facebook, Deaton said he has no problem with that person becoming wealthy.
“What is not OK is for rent-seekers to get rich,” Deaton said in a luncheon speech to the National Association for Business Economics.