If we don’t close the wealth gap, capitalism will disappear
By Dr. Larry Fedewa (March 30, 2019)
“American capitalism is now in crisis because most financial assets, most ownership of stock, and most capital income from dividends and interest and capital gains are concentrated in the top 1%, 5%, and 10% of the population. As these levels of concentration approach 80%, our society could soon arrive at the level of ownership that English lords and ladies had of all English land before the American Revolution.” (Blast and Freeman, FORTUNE, April 17, 2014). That system was essentially medieval feudalism, with serfs and masters.
Henry Ford understood the fundamental dynamic of capitalism, namely, that sharing profits with employees gives them more money with which to buy his products, which in turn increases profits, and that increases everyone’s wealth. This simple fact has been forgotten by the American business culture. The very purpose of capitalism is to increase the wealth of the entire nation and so to give everyone a stake in diligently pursuing a peaceful, productive life.