High tax rates only cement the current wealth structure in place. Increasing inequality is bemoaned by the left worldwide, with the Financial Times’ Edward Luce doubtless making President Barack Obama choke on his cornflakes by claiming that “US inequality will define the Obama era”.
Yet contrary to the left’s fond belief, the increasing inequality and the crass behavior of the super-rich are responses not to inadequate levels of taxation but to two decades of monetary policy that has imposed negative real interest rates on the world economy. Federal Reserve chairman Ben Bernanke, his predecessor Alan Greenspan, and their imitators abroad are responsible for the rise of a global nouveau riche class that is not only uniquely privileged, but in many (though not all) cases uniquely unpleasant in its ethics and behavior.
Asia Times Online