History is great teacher
A letter to the editor by Mr. Flora, appearing Jan. 12, was right to the point and accurate.
To those who bring history into economics, you seem stuck in the 19th century. Huge income gaps starting in the 20th century caused major events in human history. When the rich are so rich, and the poor are so poor, bad things tend to happen.
Russia, early part of the century. Czar overthrown by Lenin and communism installed. Germany, pre WWII, economically squeezed by the allies after WWI. Eventually led to Hitler, we know how that played out. China, during and after WWII, people rose up because of wide gap in economic conditions, led to Chairman Mao and communism. Cuba, late 50s, people were very poor while Batista and American corporations, and mobsters had all the money. That led to Castro and communism. Venezuela, big oil corporations making major bucks, and the people struggling to survive, led to communism.
Anytime you let free markets to flourish in capitalism, it ends in one of two ways, government overthrow or a severe depression, which of course leads to war, which happened in WWII.
History is a great teacher, if you learn all of it, not just the parts you choose to remember.