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Solutions Rooted in Sentiment always Exacerbate Bad Scenarios
As the story goes, America’s problems are rooted in its adoption of Capitalism as rubric for conduct of economic activities. In presence of stated assertion, there is arrival at the implication, which patently is false, that Capitalist Countries which care about income inequality, but yet are about as rich as America — Norway, Denmark, Finland, Netherlands, Sweden — do not exist.
If countries that combine Capitalism with regulation of Income Inequality are about as rich as America, and richer than most other countries, with ethical building of wealth as essence of Capitalism, can it be asserted that such countries are not fully Capitalist?
Perhaps, more importantly, we arrive at the following normative question, namely:
“Does Financial Economics Theory itself predict a Capitalism that differs from one which cares about Income Inequality?”
The Answer? No, financial economics theory does not predict only shareholders matter. Evidence and Explanation to follow.
