Very interesting post by David Atkins at Hullabaloo on a long time policy preference for Americans to be more invested in assets than wages. This helps explain some of the policy choices of recent decades without resorting to characterization of lawmakers as cartoonish supervillains. He keys on a passage from a 1975 Ronald Reagan speech:
Roughly 94 percent of the people in capitalist America make their living from wage or salary. Only 6 percent are true capitalists in the sense of deriving income from ownership of the means of production…We can win the argument once and for all by simply making more of our people Capitalists.
One problem with this goal is that asset based income can be very unpredictable. It’s hard to mitigate that unpredictability when your need for the income is immediate because you need to eat and whatnot.