How the Economic Machine Works by Ray Dalio.
Income cannot grow unless individuals can participate in the production of products and services, and generate earnings. But ordinary Americans are shut out of the participation via ownership in wealth-creating, income-generating productive capital assets because of the requirement for “past savings,” which most people lack, because they cannot afford to restrict their consumption needs to sustain their daily, weekly, and monthly needs. As well, as tectonic shifts in the technologies of production destroy jobs and devalue the worth of labor, there are less opportunities to earn income via a job. And without a job, they cannot be credit worthy. What we need is for government to implement policies that provide EQUALITY of opportunity so that EVERY American can be productive through his or her contribution of OWNED wealth-creating, income-generating productive capital assets. This is the surest measure for stimulating the economy’s growth, using capital credit, not consumer credit, to balance production and consumption. The system needs to be reformed by policies that provide opportunities for ordinary Americans, without savings or high incomes, to acquire shares of ownership in FUTURE productive capital assets and pay for their acquisition with the earnings of the investments. Broadening ownership is the ONLY way to ensure prosperity for EVERY American while protecting the private property rights of those who own. It is the ONLY way to counter the job destroying and worth devaluation of labor due to tectonic shifts in the technologies of production.
