Billionaire hedge fund manager Ray Dalio has a bone to pick with capitalism, despite his own financial success: For most people, the economic system simply is not working.
According to CNBC, Dalio made his remarks in November during a talk in which he discussed wealth inequality and some of the flaws of capitalism.
“Capitalism basically is not working for the majority of people. That’s just the reality,” Dalio said at the 2018 Summit conference in Los Angeles in November. Monday, Dalio tweeted a video of his Summit talk.
“Today, the top one-tenth of 1 percent of the population’s net worth is equal to the bottom 90 percent combined. In other words, a big giant wealth gap. That was the same — last time that happened was the late ’30s,” Dalio said. (Indeed, research from Emmanuel Saez and Gabriel Zucman of the National Bureau of Economic Research of wealth inequality throughout the 20th century, covered by The Guardian, bears this out.)
Another economic downturn, which Dalio believes is bound to occur, will only increase the gap between the ultra wealthy and everyone else.
The situation is so dire, according to the billionaire, that the United States should declare wealth inequality a national emergency:
“If I was doing it, I think that you have to call that a national emergency,” said Dalio. Then, reasoned Dalio, the President could ”[take] responsibility for changing those metrics. I think there’s a lot that can be done in private-public partnerships and so on to be able to change it, but I fear that that probably will not be done by the next time we have a downturn, and I fear for what that conflict is going to be like that.”