"Here is a great follow up on the video I posted earlier. He talks about taking a long term,…"

Here is a great follow up on the video I posted earlier. He talks about taking a long term, balanced approach to solving the wealth inequality problem. Interesting read. Below are the key points in case you don’t want to read the whole thing.

“A lot of that wealth inequality is actually age, not class. Young people tend to have a lot of debt and not much savings, meaning they have negative wealth.

“Giving the poor and middle-class more income will boost the amount they are able to save, the percentage they are willing to save, and the return they get on those savings. Part of the reason America’s wealth distribution is so unequal in the first place is that our income distribution is very unequal.

“The most potent way to get more wealth to the poor and middle-class is to get these people to save more of their income, and to invest in assets with higher average rates of return.

“‘Cheap’ is an insult, but being cheap is how you get rich. If you consume everything you earn, your consumption will be higher today, but lower twenty years down the road; in our consumption-focused society, a lot of people are caught in this trap.

“More financial education in public schools is a must. “

How to Fix America’s Wealth Inequality: Teach Americans to Be Cheap – Noah Smith – The Atlantic