The Wall Street Journal is, hands down, the best newspaper in the world. My opinion, but hey...
And that is why I don't subscribe to the Wall Street Journal. If I did I would spend half the day reading it. But once in a while somebody leaves one in the gym so when I go work out I end up spending an hour reading the Journal.
Interesting article on income differentials where the gap is growing between the middle class and the 'upper class.' Seems the population is a bit upset about this and is being cited as a major reason for the Dem's win a few weeks ago. Which means the population expects them to do something about it. Good luck. So what can be done to erase this gap?
Cap executive pay. Great idea. Been tried already and failed. During the last spate of corporate scandals the Congress fixed them by capping the tax deduction companies can take for executive compensation at $1 million. So companies threw stock options at executives to take care of that little problem. Rule Number 1-the average tax lawyer is smarter and sneakier than the average congressman.
Raise taxes on the rich. The Up Against The Wall School of Taxation. Eliminate the 15% tax on dividends and capital gains. Hike the marginal rates back up to 39.6%. This one folks is not a winner and if allowed to happen will have a very negative impact on the market and the economy which means unemployment will go up which means fewer middle class jobs. Not good.
Spend more on education. I thought we were already doing that. (Read an interesting fact about the recently deceased Milton Friedman. He thought public education was a bad as it is because it is a monopoly. Interesting idea.)
Anyway, none of those ideas for "narrowing the gap" look like real winners to me. I'm also not convinced that the middle class is doing so poorly. If you want to see a middle class in trouble, or non-existent, go to Latin America.
But I'm open to new ideas. Anybody got any?