An answer to wealth disparity in America without having to exercise radical socialism can be made with a few small changes in the distribution of wealth within corporations. One, requiring a complete revamping of executive compensation by making it performance
based & not stock based compensation. Numerous Silicon Valley billionaires run companies that continuously operate at losses & survive on capital raises & debt infusions. They are then able to extract that money through stock based compensation plans. IF CEO's were only able to
extract money from corporations that were profitable it would cause a redistribution of that money to ventures that are more sustainable & reduce mal-investment internally & externally. Increased money, increased investment & then the money matriculates into more hands.
Society benefits as wealth is distributed more evenly & government benefits as profitable companies pay more taxes. Also, if the Internal Revenue Services would enforce the accumulated earnings & profits statutes which requires Corporations to distribute excess profits or be
taxed on those profits we would not have enormous amounts of wealth accumulated by large corporations like Apple. This profits would be redistributed to investors in the form of dividends or in higher wages & it would reduce monopolies.
Monopolistic behavior squashes innovation-growth & thus lessens the creation of wealth while reducing the opportunities to import foreign savings into the economy. All of these actions help mitigate federal intervention which creates zombie companies by redistribution. #FinTwitt
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