Daniel Gross Knows What Keeps Billionaires Up at Night
I admit that I sometimes have nightmares about angry mobs storming my estate with pitchforks and torches, but then I wake up and remember that my enormous security staff are highly loyal and highly paid ex-Special Forces. Daniel Gross writes in Slate today about how the superwealthy are fretting about income inequality, but he doesn't say that we are worried about angry mobs or, for that matter, confiscatory tax policies. No, what we are worried about is this:
[I]f middle-class Americans continue to struggle financially as the ultrawealthy grow ever wealthier, it will be increasingly difficult to maintain political support for the free flow of goods, services, and capital across borders. In addition to Lou Dobbs Democrats, we'll have more Lou Dobbs Republicans. And when the United States places obstacles in the way of foreign investors and foreign goods, it's likely to encourage reciprocal action abroad. For people who buy and sell companies, or who allocate capital to markets all around the world, that's the real nightmare.Gross does indeed identify my biggest worry, but I am already on record opposing the proposed increase in the accredited investor standard to $2.5 million in investment assets. The increase will make it too hard for the poor and middle class to invest in hedge funds, private equity funds and other pooled investment vehicles and enjoy the types of investment returns now enjoyed by the superwealthy.

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