Former Labor Secretary Robert Reich criticized Ray DalioFounder and Board Member Bridgewater AssociatesThe latter said he did not propose to stop giant hedge funds and private equity funds from forcing companies to exploit all of their profits, usually by holding back wages and abandoning workers and communities. do it by
In a Substack post titled “Worse than Hypocrisy: Ray Dalio and the Darkest Heart of Capitalism,” Reich said that hedge fund managers classify much of their income as “capital gains,” making it less than regular income. We also observed that they were taxed at much lower rates.
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“Their wealth has given them so much political clout that this ridiculous ‘running interest’ tax loophole remains, even though the past four presidents have promised to close it. increase. So while schoolteachers and cops face his 25% marginal tax rate, hedge funds and his managers like Dalio, for years, have paid him only 15% on huge incomes. No,” Reich said in a post.
Quoting Dalio, Reich said, “For the vast majority of Americans, the system doesn’t work so well because it creates a self-reinforcing spiral—up for the haves and down for the have-nots.” Stated.
Dario and his brethren are part of that self-reinforcing spiral, and Reich added, “The rest of us are worse off about it.”
Pension fund: In a memo to pension fund managers, Reich advised them to “get out of hedge funds completely.”
“You’re wasting retirement money for the workers you’re supposed to represent,” Reich said.
Mr. Reich also advised pension fund managers that if they had to join a hedge fund, they would have to speak up about manipulating executive pay.
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Photo credit: World Economic Forum on Flickr