That’s exactly and inherently what capitalism is. Rate of return on capital is higher than rate of return on labor. The people with capital continue to pull ahead. And in America, we now decided to compound this by not taxing and undertaking capital. Which then allows those with capital to transfer some of their capital to political power that then accrues even more advantage to capital owners
When capital is vastly more valued than labor then its an asset bubble that will pop. Labor is the actual economy, capital is a make believe economy, when corrections happens its that capital loses all their bubble money not that labor catches up to that imaginary world.
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That’s exactly and inherently what capitalism is. Rate of return on capital is higher than rate of return on labor. The people with capital continue to pull ahead. And in America, we now decided to compound this by not taxing and undertaking capital. Which then allows those with capital to transfer some of their capital to political power that then accrues even more advantage to capital owners
When capital is vastly more valued than labor then its an asset bubble that will pop. Labor is the actual economy, capital is a make believe economy, when corrections happens its that capital loses all their bubble money not that labor catches up to that imaginary world.