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Ed Conard, author of “Unintended Consequences,” weighs in on Elizabeth Warren’s statements at the DNC and income inequality.
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Next guest says he's found -- -- aligning and believe it or not he thinks is actually a good thing.
Ed -- is a managing director.
At former managing director pardon -- in capital and he is the author of the book unintended consequences.
Thank you so much for coming on our show today and appreciate that what do you what do you think what you just heard by the way what.
React I've debated a lot of people like -- on the left and they don't see any change in the economy from the 1950s to today.
And think about the 1950s big businesses are chasing after mass markets that are created by television and debt in -- interstate highway.
The entrepreneurs don't matter as much in -- economy today.
Fifteen people can create -- -- and a half a billion dollars of value in two years the Internet has opened.
New windows of opportunities that exist today that didn't exist back then and the individual entrepreneur in the heart high tech start up.
Matter a lot more and their success is beneficial to the middle class it doesn't hurt the middle.
A -- and you say a large part of that private equity is a big driver of that obviously that's been a big issue in this campaign.
Mitt Romney himself obviously from being capital I mean do you think that that private equity is a driver of good things in this economy has been unfairly -- yes I think.
Equity in general -- -- the risk which is needed to drive change to drive innovation to improve the performance of companies to increase productivity.
And when you look at the effect overall in the US economy.
-- -- forty million jobs since the 1980 on the base of a hundred million that's a 40% increase in jobs 50% of those at the high.
And the wage scale by the way Europe and Japan half as many jobs.
You look today we -- those jobs with median incomes 125 to 30% higher than Europe's -- you know as far as to say that inequality is good thing.
Yes how tax -- that well I think that the -- payoffs for successful risk taking compound over time.
To have a significant impact on the US economy.
So the first thing it does is it raises the bar for success people work a lot harder you look at the hours -- by our most successful people have way more hours and in Europe.
There are declining and there are only.
That because they're looking for the got they're looking for the huge -- so that's the reason why the guy who's just starting out.
Is willing to take a risk work around the clock and that's because he wants to be rich I think in part that's true but I think that when you narrow it down to one individual you do forget that.
Business is a team sport.
Thomas Edison said success -- 1% inspiration 99% perspiration is a lot of guys carrying water and guess what they are working for the money -- it take -- FaceBook for example it's not just Mark Zuckerberg in his dorm room.
His ideas and even that original.
You know Friendster was there MySpace is there with ideas but if the implementation of those ideas and the people who fought for the pay -- To leave companies like Google and Microsoft to go work.
At FaceBook that made it successful now that's really what it hard drives -- perform what is wrong with the way that Mitt Romney has tried to -- private equity what would you tell him to stick to say and Staten well I think that the attacks on private equity a really a tax on business in general.
They -- employees against employers and so I think that has been reluctant to be on the defensive.
And defending Bain Capital specifically I think he does have to make -- I -- stake.
I'm not sure I think at some point it during this election he is going to have to make a defense of capitalism and show.
How much value it's created the US relative to Europe and Japan.
And he -- you know forty million jobs is an enormous number of jobs -- in the US and we have.
You look at the hours of work available for working age adults -- 35 to 40% greater in the US than it is in Germany and France that is a huge impact.
On the middle class here we've put about twenty million immigrants into our economy.
Given those families and work we've put tens of millions of people who work offshore what other high wage economy has done more for the middle class and working -- in the US economy don't.
We're out of time we barely scratch the surface haven't asked you to come back I want you to come on Josh -- man has wrote a book against private equity as well.
He's a very different point of view very interesting you've got to come back and talk to us again because your defense of private equity is fascinating thank you so much -- All right bringing the silicon -- back.
