What causes the wealth gap between the richest and the middle class. Complex question with plenty of arguments. Omid Malekan provides some interesting observations starting with the “Sage of Omaha.”
Take Warren Buffet, a man often at the center of this debate, as not only is he a billionaire, but also a vocal advocate for higher income taxes on the rich. Mr. Buffet’s focus on taxes on income is curious, as he didn’t become a billionaire by earning a high income, but rather from owning assets, like shares in Berkshire Hathaway. Many are aware of his acumen in making investments that have a “margin of safety” – or minimal downside – but few are aware of the greatest source of such safety for Mr. Buffet in recent years, the US Government.
Sage just means wise and learned. Rent seeking turns out to be pretty wise. Well worth a full reading.