A major negative factor in our financial system is the growing economic inequality, which eventually reaches a point where it no longer is tolerable.
That led to the 18th century revolution in France and later the Russian Revolution in 1917. Those at the bottom of the economic ladder reached a point of desperation and wanted to overturn the entire system.
In North America, notably in the United States, the shameful economic disparity eventually will become unacceptable. The gap in incomes has widened dramatically.
For example in the United States in 1967 those at the top received an income 39.3 times those at the lowest level, and in 2014 the relationship soared to an unbelievable 68.8 times, truly outrageous.
In this area of general prosperity too many top executives are granting themselves an almost obscene gap. One has to question why that takes place. Clearly, it is a form of a “report card,” but also it is a type of one-upmanship carried to an extreme.
It is difficult to understand what one could do with millions of dollars in annual pay on top of other amenities and a huge pension. Presumably greed has no limit.
What is needed, of course, is more of that “old fashioned religion” that may occur when excesses are frowned upon by the general population.
If more enlightened directors were appointed to corporate boards it could be a curb on that nonsense. One has to hope that laws will be changed to ensure the mandatory appointment of union representation on boards, mirroring such statutory moves in Europe (Germany, for instance).
Then, taxation reform is essential. People such as multi-billionaires pay taxes at the rate of ordinary clerical workers – that simply must not go on.
Inheritance taxes, which now are at minimum levels in North America, must be instituted. It is argued that wealthy people may stop working entirely if their accumulated wealth no longer can be passed on to the next generation.
Yet the unfairness is obvious, and some wealthy people may decide not to continue to build up their wealth. That is unfortunate, but for the most part even the very rich will continue to work assiduously for sheer pleasure of their job. In any event excessive bequest must be gradually phased out.
Legacies at prestigious post-secondary institutions also weaken the educational process. That adversely affects the associations themselves. They should determine entrants on their merits alone.
Government legislation must set standards to provide leisure as well as education for everyone. Better education for all will be a great equalizer.
Before North America, especially the United States, reaches a boiling point, these kinds of reforms are essential. That cannot happen too soon to ensure a just society and social stability.