Private Equity 20 Dec 2006 10:28 pm
TAM Money and Finance has written plenty on private equity firms buying everything under the sun. They’re our current Masters of the Universe so it’s not a shock that a newspaper like the Financial Times gives Blackstone chief executive Stephen Schwarzman credence on U.S. income inequality:
“People like to have the American dream: everybody successful. I think Wall Street is doing so well now, it’s certainly not an object of any sympathy for anyone,” he said in an interview for the Financial Times’ “View from the Top” series. “The middle class in the US hasn’t done as well over the last 20 years as people at the high end, and I think part of the compact in America is everybody has got to do better.”
But Mr Schwarzman, a Republican supporter, suggested that political action such as higher taxes for the wealthy was not the best solution. “Better to deal with this by having the middle class do better rather than whacking somebody on either side of that,” he said.
Schwarzman is good at making money by buying and selling companies. He’s not a social scientist. He doesn’t explain why growing income inequality is bad, and his only suggestion is to not tax the rich. Let him stick to what he’s good at.