Warren Buffett is arguing for a taxpayer bailout of corporate America. Here is his argument:
Due to rising productivity, more and more U.S. workers will lose their jobs. This spurt in worker productivity will likewise increase corporate profitability and produce greater income for the wealthy according to Buffett.
He then contends that U.S. taxpayers should boost the earned income tax credit to support the laid off workers and to reduce income inequality. Thus, using Buffett’s line of thinking, the U.S. taxpayer should subsidize corporate profits.
In my judgment, Buffett’s economic recipe will slam the nation’s growth and contribute to greater, not less, income stratification.