Capitalism must be reformed because it’s creating such an income gap between the rich and everyone else that threatens to spark conflict, hedge fund titan Ray Dalio wrote in an essay posted April 4 on LinkedIn.
The billionaire founder of the world’s biggest hedge fund argued that “the American dream is lost” and that income inequality, rising health costs, and a lack of education funding pose existential risks for the U.S.
“I think that most capitalists don’t know how to divide the economic pie well and most socialists don’t know how to grow it well,” Dalio wrote, “yet we are now at a juncture in which either a) people of different ideological inclinations will work together to skillfully re-engineer the system so that the pie is both divided and grown well or b) we will have great conflict and some form of revolution that will hurt most everyone and will shrink the pie.”
“I believe that all good things taken to an extreme can be self-destructive and that everything must evolve or die,” he added. “This is now true for capitalism.”
Despite his criticism of the current state of U.S. capitalism and the fact that the nation’s top 0.1% takes in over 188x the income of the bottom 90% ; in an interview on CNBC’s “Squawk Box” Dalio said the system doesn’t need to be destroyed, just reformed.
He noted however, the question remains whether there is “equal opportunity for the American dream.” He says thanks to things like proper care and a proper public school education system he did have that chance, but too many others do not.
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!