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Former hedge fund manager Andy Kessler on the concept of consumption equality and creating equal opportunities for people in the economy.
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Next guest says instead of focusing on fairness in income we should be focusing on consumption Andy Kessler is a former have to run manager -- joins us now.
I'm candy explain this concept to us.
But look you know of course there's incoming equality -- -- capitalism works right -- prices and markets.
Allocate scarce resources.
And there are winners and then there -- Losers but I don't like when people talk about winners and losers because in reality.
-- that the successful entrepreneurs are the ones that are bringing new products and services to the mass market and they're creating what I call this.
Consumption.
-- the upper class the middle class and the lower class have today that they didn't have five years ago let alone twenty years ago I mean the iPhone.
Is the best example of mobile communication product you could even built five years ago now -- sold in the tens of millions I can't.
-- your previous guest.
If you don't have a job you can't buy and I found.
So I don't know how -- bridge this concept everyone.
-- well of course if you don't have a job you you can't buy an iPhone but you know it's these entrepreneurs that are big job creating machines I think we're have a our our government that's spending too much where there's too much regulation and it's hurting the job creation machine -- -- -- I think it's better off to let these -- -- -- -- the pages and still the apples of the world and the Richard Branson's and Zuckerberg.
Let -- loose and to create.
These products that we think of all the things in the health care business.
Better better done for the mass market arthroscopic and -- stop -- laparoscopic all these things are delivered to the masses in this consumption equality.
And eventually.
Those will grow enough and -- that it will create.
Better jobs than the manufacturing jobs that have been outsourced that are that are hurting the economy today.
So how does all -- -- translate into policy what does this mean with regard to our our policy regarding taxes and regulations that are.
Well you know we have a government that's crowding out private investment and so.
You know I'm a I'm a believer that you know lower capital gains taxes are always the way to go because it's an incentive to bring.
More capital into business to helpful on doctor per north to create.
These mass market products that increase the standard of living of everyone and our economy not just.
Not just the so called wealthy and so.
I think marginal tax rates you know should be held steady your or headed down and the biggest problem is government spending crowding out the private -- So how do you rectify that I mean it's very hard to get -- message across right now at a time.
When it's still out of vogue for someone -- wealthy to come out for it meaning and if you had a Steve Jobs type person or Mark Zuckerberg -- that might come out.
And make the case forward to be one thing -- it doesn't seem like.
You know we have that person to come out and give that message right now.
Well I support -- and I think that's what this.
An economy that's based on redistribution.
Of higher taxes on the wealthy the same people that are creating all these wonderful products and services for the mass market.
And therefore you'll get less of those.
Or is it about stimulating the economy with with but we're taxes and with more ample credit taxes to help proliferate more -- -- -- And entrepreneurs that maybe middle class or lower class citizens today that then become -- because they create new mass market products in this consultant -- You know so much has to do with rhetoric in the words you use if you talk about opportunity and how much opportunity we have in this country -- -- order.
And if you talk about fairness.
-- you always hear the president talking about fairness fair his.
Seems to be a code word opportunities -- -- word for you fairness is a code word for the president right.
Precisely I -- every time I hear the word fair I cringe because it's it's.
It's really about redistribution minutes about you know making it social making assault vehicle I think we have to have equal opportunity -- I wanna make sure that -- gets.
A good education access to credit and is it is able to either find a job or start their own company to help.
Create jobs and so.
You know what's fair is its fairness and opportunity not fairness whatever I have you -- that I just don't think that's right -- of opportunity not of the outcome Andy Kessler great to see you thanks a lot for coming in.
