Interview With Warren Buffett: The U.S. is moving toward plutocracy

Important Excerpt (via The marker)

Jeffrey Sachs from Harvard was saying that the United States is turning into a plutocracy. And this is a feeling you get throughout the world, that the politicians are not powerful and the power is in the hands of a few strong players in the business sector. Do you feel that way?

“We are still a democracy, but we have moved in my lifetime towards a plutocracy. We do not have a plutocracy, I want to emphasize that, but the distribution of wealth and the influence of wealth have moved in that direction.

“If you look at the 1992 top-400 tax returns in the United States, the average income for those 400 people was $45 million per person. The last available figures show $340 million per person – that is eight for one in a period when the average worker went no place.

“The average tax rate for the top 400 went from 28% down to 16.6% during the same period, so we have had a system where as people have gotten richer and richer, they have been favored by taxation and have gotten richer to a greater degree. To my mind that is a bad trend, and it will probably get corrected in time. The rich have more influence in politics than they did 50 years ago.”

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30. March 2011 by Miguel Barbosa
Categories: Curated Readings, Finance & Investing | Leave a comment

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