Bridgewater Associates' Ray Dalio said inequality is driving the hopelessness responsible for the opiate crisis at the Milken Institute Global Conference held last week in Beverly Hills, according to a report by the Los Angeles Times.
The conference, a gathering of some of the most successful professionals in the finance industry, was entitled Driving Shared Prosperity and featured a number of talks on the increasing appeal of socialism among young people and the stagnation of wages.
The founder of Bridgewater Associates, a hedge fund with $150 billion under management, said the lack of income growth in the bottom 60 percent of the population was an important driver of suicides and opiate abuse, according to the LA Times.
Previously, Dalio wrote on Linkedin that the American economic system had put the country in danger of “great conflict and some form of revolution that will hurt most everyone and will shrink the pie.”
Guggenheim Partners’ Alan Schwartz, echoing Dalio, warned of “class warfare”. He added, “It’s not whether we should be capitalist or socialist. It’s how do we make sure that capitalism is working the way it has in the past,”
Rock-bottom salaries, which are at a postwar low of 40% of the total economic pie, have engendered a mentality of “throw out the rich” which demands some form income redistribution, said the investment bank’s chairman.
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