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Monday, June 30, 2014

'Moaning Moguls'

James Surowiecki explains why we have "Moaning Moguls":

Moaning Moguls, by James Surowiecki: The past few years have been very good to Stephen Schwarzman, the chairman and C.E.O. of the Blackstone Group, the giant private-equity firm. ... Schwarzman is now worth more than ten billion dollars. You wouldn’t think he’d have much to complain about. ... He recently grumbled that the U.S. middle class has taken to “blaming wealthy people” for its problems. Previously, he has said that it might be good to raise income taxes on the poor so they had “skin in the game,” and that proposals to repeal the carried-interest tax loophole—from which he personally benefits—were akin to the German invasion of Poland.
Schwarzman isn’t alone..., the basic sentiment is surprisingly common. ...[examples]... That’s not how it’s always been. ...
If today’s corporate kvetchers are more concerned with the state of their egos than with the state of the nation, it’s in part because their own fortunes aren’t tied to those of the nation the way they once were. In the postwar years, American companies depended largely on American consumers. Globalization has changed that... The well-being of the American middle class just doesn’t matter as much to companies’ bottom lines. And there’s another change. Early in the past century, there was a true socialist movement in the United States, and in the postwar years the Soviet Union seemed to offer the possibility of a meaningful alternative to capitalism. Small wonder that the tycoons of those days were so eager to channel populist agitation into reform. Today..., corporate chieftains have little to fear... Moguls complain about their feelings because that’s all anyone can really threaten.

    Posted by on Monday, June 30, 2014 at 09:38 AM in Economics, Income Distribution | Permalink  Comments (26)



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