Dalio cited four major countries in the 1930s that “chose not to be democracies because they wanted leadership to bring order to the conflict.” While he’s not saying the US will go there, it’s an unfair and unproductive issue that “threatens to split us,” he said.
“The American dream is lost,” he said. “For the most part we don’t even talk about what is the American dream. And it’s very different from when I was growing up.”
The Republican idea that cutting taxes on the rich promotes productivity “doesn’t make any sense to me at all,” and the wealthy must pay more, Dalio said. “The important thing is to take those tax dollars and make them productive,” he added.
Dalio Philanthropies and Connecticut Governor Ned Lamont, a Democrat, announced a partnership on April 5 to improve public education and economic opportunity, with $US100 million ($140 million) from the state matched by $US100 million from Dalio plus $US100 million from other philanthropists and business leaders.
Thanks to Bridgewater’s asset base and investing success over time, Dalio has a fortune that the Bloomberg Billionaires Index estimates at $US16.9 billion.
“It doesn’t need to be abandoned,” Dalio said of capitalism on CBS. “Like a car, like anything, a plane, a school system, anything, it needs to be reformed in order to work better.”
Dalio, expressed similar sentiments in an essay posted April 4 on LinkedIn. He pointed to statistics including that the bottom 60 per cent of income-earners in the US keep falling further behind the top 40 per cent — and that the per centage of children who grow up to earn more than their parents has fallen to 50 per cent today from 90 per cent in 1970.
The income gap is about as high as ever, and the wealth gap is the highest since the late 1930s because the wealth of the top 1 per cent of the population is more than that of the bottom 90 per cent combined, Dalio said.
“Disparity in wealth, especially when accompanied by disparity in values, leads to increasing conflict and, in the government, that manifests itself in the form of populism of the left and populism of the right and often in revolutions of one sort or another,” Dalio wrote.