“Capitalism distinguishes ‘capital’ from mere ‘wealth’. Capital consists of money, goods and resources that are invested in production. Wealth, on the other hand, is buried in the ground or wasted on unproductive activities.” – Sapiens A Brief History of Mankind, pg 314.
The excessive wage inequity seems to represent a deficient reinvestment of profit going toward production vs. wealth accumulation for 10% of the population. This prevents sufficient trickle down. Raising taxes on the excessive income combined with a high statutory % requirement for the reinvestment of profit toward production may be a solution. Doing so may also foster long term investment.
