In response to the popularity of raising taxes on the superrich, a Fox guest says wealth inequality makes "the disadvantaged" act irrationally
James Awad: "History shows that [wealth redistribution] doesn't work"
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From the February 12 edition of Fox Business' Varney & Co.:
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STUART VARNEY (HOST): What do you make of this frequent repetition of income and wealth redistribution?
JAMES AWAD (CLEARSTEAD ADVISORS): Well, we are going to have a debate about it in the country, you have had an increase in the disparity in wealth because of the easy money policies which has lifted assets more than it's lifted wages and the economy, so there is going to be a debate. But you have to say, the Democrats are coming out of the box with rather extreme proposals, but I think they're trying to make a political point to get the argument going. You're not going to get -- no Congress is going to pass the type of legislation that they're proposing, and it doesn't work. I mean, history shows that it doesn't work. You can have incentives to get people to act differently, but you cannot take money from one person to another with nothing in return and keep the incentive system in this country.
VARNEY: Is it a good goal to say we want to reduce income and wealth inequality? Is that a worthy goal, is that something we should be aiming for?
AWAD: It's something -- it's something we need to be attentive to because it creates anger and -- not rational activity on the part of those who are the disadvantaged. But you have to give them hope rather than just giving them a paycheck. In other words you can't just give them money, you have to give them an incentive and a pathway to making more money and reducing that gap -- which you can do through incentives in the tax system, but not through straight redistribution.