Recommendations on Income Distribution
1. Hispanics have lost wealth proportionately more than whites. I think it is pretty easy to connect the dots between government policy to expand home ownership and this outcome. As I said at the Senate banking committee, buying a home with little or no money down is gambling, and it’s wrong. Government policy promoted gambling on house prices, and minorities bore the brunt of this “help.”
2. Scott Sumner is adamant that taxing savings is bad.
You can redistribute consumption from the top 1% and give it to average Americans working in a car factory, or a Walmart. But it’s an illusion to think you can redistribute investment from the top 1%, so that average Americans can have a higher living standard. Where do people think the car factory comes from? Or the Walmart building? BTW, this has nothing to do with trickle-down economics, a theory I reject. This is simple accounting.