- Leon Cooperman, a hedge fund billionaire, beautifully demonstrated the power and lethality of what I consider the world’s most serious problem: the wealth gap.
- Cooperman demeaned thousands of intelligent Americans, saying that “they have no idea what they are doing.”
- The wealth gap may be driving the world back to feudalism, living and working in walled off and secured buildings.
In just one news story this past week, there is more sadness and hilarity than in a trainload of clowns. If you read any GameStop or Robinhood financial stories, you might agree that the wealth gap could be affecting human logic as well as economics.
Leon Cooperman, a hedge fund billionaire, beautifully demonstrated the power and lethality of what I consider the world’s most serious problem: the wealth gap. The wealth gap not only represents the total inequity of the world’s wealth but the complete disconnect between the world’s “leaders”.
Cooperman stated that people are “sitting at home getting their checks from the government, trading their stocks” and causing financial markets problems. He blamed coronavirus stimulus checks and low-interest rates for financial “professionals” for unexpected money loss in recent days.
Even if Americans were using these funds to enrich themselves, wouldn’t that be the point?
Don’t we all have access to the markets? Wouldn’t this be a proactive means to close the wealth gap?
If billionaires lost a few bucks, would it hurt anything? Many professional investors had already sold GameStop options at lower costs and could not make up their billions in losses.
They had to buy the stock at prices HIGHER than they sold them.
Maybe some of the wealth gap got narrowed this week.
Cooperman also demeaned thousands of intelligent Americans, saying that “they have no idea what they are doing.” The jealousy and greed expressed by Cooperman and the denigration of their intelligence is a direct parallel to what we have seen in party politics over the last decades.
The other side is always stupid, uninformed, and taking what is not rightfully theirs.
Regardless of what side we are on in any disagreement, the competition is always more capable than we wish to acknowledge. The American public is more capable and informed than ever and more than many business professionals and politicians.
On CNBC, Cooperman famously said that the rich paying a fair share in taxes is bullsh*t and is a way of attacking wealthy people.
Do those of us on the less fortunate side of the wealth gap get the respect we deserve? To some on the right side, we only exist to purchase products and services they sell by borrowing money from them. This is the blindest, greediest interpretation of economics imaginable, and it is not sustainable.
Economic Trends Lead to Feudalism
The wealth gap may be driving the world back to feudalism, living and working in walled off and secured buildings. Meanwhile, our elite legislature is imposing taxes on the peasants who surround them and support their lifestyles.
The U.S. government leads the way with a visitor proof fence around the White House, locked doors at the Supreme Court, and new almost impenetrable barriers and military guards around the U.S. Capitol.
The best part of the story: In his 2019 performance on CNBC, Cooperman “famously cried … when he objected to the wealth tax” proposed by Senator Elizabeth Warren. More of us should be able to see these self-appointed rulers of the world at their weakest.
According to Celebrity Net Worth, the richest royal person in the world is The Sultan of Brunei, also known as Hassanal Bolkiah Mu’izzaddin Waddaulah, who has a net worth of $30 billion. He ranks 42nd on the list.
Might this lend a little significance to the seriousness of the wealth gap?
Why this matters
Knowledge is power; power can be money. This worlds richest hold their wealth in real estate and other tangible assets. They increase their wealth through investments and favorable tax treatment. Take a little time to watch this video explaining how that works for them and not for the rest of us.
Maybe more Americans will join in the Robinhood Revolution and close the wealth gap.
Closing the gap by economic measures and market forces makes sense. It does less to anger the 0.0001% than radical tax reform. The U.S. has a severe case of “unbridled Capitalism,” so some downflow of wealth accompanied by tax reform could make a huge difference in America’s economic conditions.
Providing critical goods and services can increase personal and community wealth, especially if they are exportable or if customers come from other places to make their purchases. It worked in Medieval times and still works today.
When more citizens are being productive and keeping money in circulation by purchasing and benefiting from American made goods and services, we all stand to benefit.
So let me close with this quote:
“We’re all better off when we’re all better off.”
The Gardens of Democracy Eric Liu & Nick Hanauer
Mr. Keillor is the creator of Mark Keillor’s American Pie Seminar, an extensive lesson that includes history, civics, community economic literacy, and leadership. His approach is to relate individuals’ lives in a way that makes them want to understand civics principles and become active in their communities. He has studied the U.S. Constitution, “untaught history” and the lack of civics education in America. He spent a career in community and economic development. His writings clear up misconceptions of the Federal debt, taxes and the wealth gap, civil unrest, and much more. He is a graduate of Ball State University and the Economic Development Institute.