Mutual Funds’ Dark Side

The great drama of our time is the rise of the 1 percent. Thomas Piketty has done more than anyone else to put this question on the public agenda. But while his book Capital in the Twenty-First Century documents the growth of inequality, he does not offer much of an explanation or a solution. He thinks that capitalism naturally favors investors over workers, and proposes as a remedy a global wealth tax, which no one thinks is feasible. Yet recent work by a brilliant young economist suggests that the problem is not capitalism per se, but the way our financial system is organized. The key to the problem—and to the solution—is the rise of the institutional investor. Continue reading at 'Slate'

[ Slate | 2015-04-16 00:00:00 UTC ]
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