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Brazen act like big on the executive Rick it's Jim.
Occasion posted -- -- we can afford right don't -- The anti capitalist protesters are furious that Saddam would view have much more money than others.
But it's not just the silly protesters have found -- poll found six in ten Americans say government should reduce the gap.
Between the wealthy -- less well off.
-- cliff -- is one of those wealthy people he's gotten absurdly rich growing and investment firm and he says that's okay.
Why is it okay you're just moving money around -- year.
Feeding off the public well you have a lot of issues there on this is -- located make a lot of money and is -- -- to make a lot of money through an investment firm.
We discover very rapidly when people doing investing do their jobs poorly.
Up prices but it certainly America's people get that Steven Jobs created jobs and products.
That you just shuffle money around.
Investment firms banking.
Us speculators everyone like this gets accused of shuffling money around.
Yet we've been around since the Roman empire and apparently there's an economic reason for this.
A lot of -- modern economy depends on prices being right we've seen what happens when prices are wrong we've seen the tech bubble we've seen the real estate bubble.
Free economies would people sending their own money -- -- their own money on things get prices -- more accurate than if the government is sitting there and telling you what prices should be or if nobody's doing it.
So -- and eight banking investment management any of these things.
Several vital function.
They get money to the right parts of the economy at the right price you -- investor bets right those companies grow.
If he bets wrong he loses his own that that's the whole idea and the flip side.
Not sending money after bad ideas has just as importantly we got to remember about capitalism.
It sounds ugly but failures every -- -- every bit as important success.
All right but a result of that that the protesters complain about is this income despaired.
And it is big in America and growing bigger I would say it's a by product of freedom when you're free some people will do much better than others.
But as the stock market goes up your class got filthy rich so long it's immoral.
Personal some of these numbers a disputed there are a lot of new studies out this.
Economists and Tyler count norm I'm I'm a big fan of talks about selling -- to some consumption equality the stuff we actually.
By with our money that's a lot more equal.
Than it was fifty years ago -- go back fifty years it did the -- being a middle class person the richest person country in the stuff they -- with their money.
Was probably a lot different than the difference between a middle class person and even Bill Gates.
Right now even poor people in America have access to cars air conditioning flush toilets things that -- didn't have.
About a -- you would rather be a corporates in America -- -- king in the sixteen hundreds and eighteen -- you are -- that that was given that there's still this this disparity that feels unfair.
Americans have always been and I think this is a very good deal been willing to accept even large amounts of inequality inequality as long as there -- three things present.
Very quickly one that those.
At the top in -- -- your crazy person -- you think the vast majority of the well off in this country have cheated to get their money I think it's the exception not the rule when it happens we should go after it.
-- all guns blazing.
Number two is growth.
Does inequality in a system where where there -- outside towards lead to more prosperity.
I think even over the so called last thirty years there's new evidence that says yes it's led to more prosperity for everyone but over our history.
The evidence in the book is closed on that's it does lead to more prosperity the last one is the -- obvious one.
Can someone -- do it landed -- aristocracy in this country or can everyone have a shot at being that person was well off.
Has gone down most statistics show it had gone down towards harder to move out of the bracket your parents -- -- but it hasn't gone down that marks a pew study.
Looked at families followed up for thirty years 68%.
Of the kids born of the poorest shift.
Had risen to a higher income group 6% went from the bottom to the top.
And of the kids born to the richest families.
Fell out of the group and 9% went all the way to the bottom -- I must say it's rude when you come here with more facts in your -- Good to be frank most.
Rich guys in women I know didn't start out there.
I'm a lot of middle class a lot more lower middle class on -- hi I'm sorry to break this to my dad about -- the son of -- rich father's secret is is out but.
If you're very poor in this country you can get trapped into a cycle of poverty.
-- I know you discussed it before but the marginal tax rate on work when -- on government assistance is very high meaning.
To give up government benefit to go try to get a job is not always a very good deal in the system we've set up.
But we work plot dependence we've talked dependence and we've not rewarded the the attempt to get off dependents -- -- last question on just.
Morality of the income disparity and -- the Wall Street Journal and there's an article about your new home -- build.
More than 20000.
That's gross you have this excessive home when some people are poor in the article mention I had four kids born within a year and a half.
You and kitty yield -- morning kids still -- in America we tend not to use the word need about what other people out to do with their money.
Now let me talk about my tax rate my marginal tax rate that depends how many of the taxes you count but -- somewhere north of fifty.
What I do with what's left.
Really my business I gotta tell America.
I actually have a counterproposal Warren Buffett let's assume if you've made some money like you're working for your kids and add up.
If you make ten dollars had to get -- kids and take all the different income taxes you pay the Social Security tax the Medicare tax.
The tax on investment income as it -- to get to your kid and eventually the inheritance tax.
I will sign on for the buffer rule again among cost -- a nickel -- -- into the fifties but I'll sign on to the -- rule for all but you know -- all hang out together for all my friends.
If he will sign on for the the government doesn't get more than 70% of what you make when -- added all up.
I think more than 7% -- taxes are necessary we need Texas around the country saying taxes are theft as some as someone on our side do it's too extreme.
Some are but taxes of more than 70% agree are are approaching -- so when someone's paying more than fifty and want to spend their money on what they want.
People should stay out of it when some people are paying more than seven the -- the money they can give their kids that's where the immorality is coming from.
One point I wanna quibble with we don't -- taxes to run the country we need Texas are on the government that thing we run the country free people run motive out here correcting me not quibbling -- you know I agree repeat.
Okay thank you -- fast that's.
More on that evil -- disparity.
When we return.
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