Saturday, November 30, 2013

No Middle Ground

Wal-Mart Stores Inc. is forecasting a difficult holiday season, but Tiffany & Co. just exceeded their earnings estimates by the simple expedient of raising their prices. It’s hard to find a more vivid example of the segmenting taking place in American society: The wealthy are doing very well indeed, while even bargain retailers are having a harder time of things. Here's the question. Is it the Rich's fault they are richer? Why are the poor remaining poor? Who is driving this? What is wrong? I maintain this is the result of really bad tax policy, government regulation and subsidies for the poor that commands them to remain poor or be punished. Unless this is turned around the rich will keep getting richer and the poor poorer.

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