Take a look at this insightful article by Jeremy Grantham in the 4Q 2016 GMO Quarterly Letter (h/t: RME):
“[W]e live in a different world from the one we grew up in. A world in which a degree of economic struggle between the financial elite, perhaps 10% but more likely 1%, and all the rest is finally recognized. The wimpy phase is probably over. The question now is which path will this struggle take? Will it be a broad societal effort through established political means to move things back to the 1950s to 1960s when a CEO’s pay was 40x his average employee’s pay and not today’s over 300x; when corporations never dreamt of leaving the US merely to save money; when investment banks set the standard (and a very high one) of ethical behavior? Or do we try to do it through the other historically well-used method, and a much more dangerous one – that of resorting to a “strong leader?” Strong leaders work out just fine if we end up with a Marcus Aurelius, the mostly benevolent and wisest of Roman Emperors. But when things go wrong, as they often do, we could more easily end up with Caligula.”
You know, everybody likes candy. But if that’s all you eat, you will die — and not well. Can we at least consider the possibility that “the unregulated market” doesn’t always know what’s best, and that as participants in (and in some cases, stewards of) our capitalist society, we need to adopt a more nuanced approach to our preferred socio-political belief system than the current “dog keeps eating until it throws up” model?
We are not dogs. We are supposed to be better than this.
Full Article (7 pages):
The Road to T****sville: The Long, Long Mistreatment of the American Working Class