Actually the long known problem with capitalism is that it distributes the wealth in only one direction: up. This is why capitalism is totally dependent on growth and new market. This is also why wealth redistribution is important with policies like the inheritance tax. Without these policies money gathered at the top becomes stagnant and does not have the same beneficial effect as the same amount of money spent across many at the very bottom.
Capitalism doesn't redistribute wealth, period. Capitalism that has been encroached on by socialist programs, entitlements, subsidies, tax shifts and redistributive programs creates a system to the highest bidder or largest voting base (poor-dependent class)
The problem with a privilege system (US is moving in this direction) is that the allocation of money from the public treasury fluctuates from the low/middle/upper classes. You happen to be a proponent of the lower and middle classes, as Paulson may be a proponent of his corporate buddies and cronies. Both systems are equally unfair as it takes from the pockets of the working class.
Small business propels this nation with its workforce, not the poor or upper classes. Growing government creates a dependency class, which fosters a high incumbency rate to politicians that give handouts to this base of people. Our government was created to setup equal rules, on an equal playing field. Not redistribute the fruit of my labor to my neighbor.
Bailing out the already wealthy is a misallocation of resources and basically stealing from the next generation and if you plan to live awhile, likely yourself. - Stretch
The government has no right to discriminate its funds to people based on class whether the money is being transferred up or down. - FLea
We are suffering from a privilege system, one that lacks responsibility and accountability, as any screaming falls on deaf ears.
