The root of wealth disparity

Directly linked to our striking teachers, the most important question in Namibia right now: how do we structure our financial system so that it actually provides an economic and social good to avert the looming crisis emanating from ordinary working people taking defensive action?

Consider that:

Thanks to years of policy changes and bad decisions, only about 15 % of all the money in our market system actually ends up in the real economy – the rest stays within the closed loop of finance itself.

The financial sector takes a quarter of all corporate profits in this country while creating only a limited amount of jobs

The tax system continues to favour debt over equity, making it easier for companies to hoard cash overseas rather than reinvest it in our country for our people.

Our biggest and most profitable corporations are investing more money in stocks than in research and innovation.

Exploring the forces which have led businesses to favour balancing-sheet engineering and the pursuit of short-term corporate profits over job creation, Rana Foroohar explains how financialisation has gravely harmed our society and widened wealth disparity.

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