Government Is Largely Responsible for Soaring Inequality

It's Not an Accident ... It's Policy

America is experiencing unprecedented inequality. And a who's who of prominent economists (and investors) say that inequality is hurting the economy.
Defenders of the status quo pretend that this inequality is something outside of our control ... like a force of nature. They argue that it's due to globalization, technological innovation or something else outside of policy-makers' control.
In reality, inequality is rising due to the government policy.
The chairman of the Department of Economics at George Mason University says that it is inaccurate to call politicians prostitutes. Specifically, he says that they are more correct to call them “pimps”, since they are pimping out the American people to the financial giants.
The government has saved the big banks at taxpayer expense, chosen the banks over the little guy, and
Crony capitalism has gotten even worse under Obama than under Bush.
Obama is prosecuting fewer financial crimes than Bush, or his father, or Ronald Reagan.
Moreover, not only is the cop not cracking down on crime ... he's on the take, and helping carry out and cover up the crimes.
No wonder:
All of the monetary and economic policy of the last 3 years has helped the wealthiest and penalized everyone else. See this, this and this.

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Economist Steve Keen says:
“This is the biggest transfer of wealth in history”, as the giant banks have handed their toxic debts from fraudulent activities to the countries and their people.
Stiglitz said in 2009 that Geithner’s toxic asset plan “amounts to robbery of the American people”.

And economist Dean Baker said in 2009 that the true purpose of the bank rescue plans is “a massive redistribution of wealth to the bank shareholders and their top executives”.
Without the government’s creation of the too big to fail banks (they’ve gotten much bigger under Obama), the Fed’s intervention in interest rates and the markets (most of the quantitative easing has occurred under Obama), and government-created moral hazard emboldening casino-style speculation (there’s now more moral hazard than ever before) … things wouldn’t have gotten nearly as bad.
As I noted in March 2009: Continue reading

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