Ray Dalio is the founder of Bridgewater Associates, the largest hedge fund. In a new essay he called for the reform of capitalism, arguing that if the US does not redistribute wealth and opportunity, the country’s existence as a stable global power is threatened, writes Business Insider.
He said the US needs leadership that will declare inequality a national emergency. The essay is part of Business Insider’s series on Better Capitalism. (Feature Photo: Ray Dalio, Getty)
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As the 2020 presidential race heats up in the United States, Democratic candidates like Sens. Bernie Sanders and Elizabeth Warren are calling for an overhaul of America’s economic and financial policies for the sake of the country’s future. Also joining the conversation: hedge-fund billionaire Ray Dalio.
Dalio is the founder and co-CIO of Bridgewater Associates, the Connecticut firm with $160 billion in assets under management. On “60 Minutes” Sunday night and in a LinkedIn post published Thursday, he deemed current levels of inequality a “national emergency” and called for a reformation of capitalism.
“I think the American dream is lost,” he said on the CBS broadcast.
In his LinkedIn essay, he wrote that the “income/wealth/opportunity gap and its manifestations pose existential threats to the US because these conditions weaken the US economically, threaten to bring about painful and counterproductive domestic conflict, and undermine the United States’ strength relative to that of its global competitors.”
Dalio used data to show there are essentially two Americas, where the top 40% is doing significantly better than the lower 60% and the nature of accrued wealth and educational opportunities for the majority of Americans is keeping them trapped in poverty.
Dalio said that while the inequality in the country is benefiting the wealthiest Americans as much as it ever has, the economy as a whole is losing in the long run. He explained it’s resulted in fewer people being able to participate in the economy as both consumers and workers, as well as political tensions he’s afraid will tear the country apart. Read the full article here. Read the Linkedin article here.