Ray Dalio, the founder of Bridgewater Associates, published a two-part article on April 5, 2019 titled Why and How Capitalism Needs to be Reformed. The first section is about Ray's perspective both as an American and further as the founder and CEO (although not currently) of one of the world's largest and most successful hedge funds. The second part of the article offers an explaination why capitalism is failing and what he thinks we should and can do about it.
This piece is already written in a succinct fashion with lots of bullet points and summaries. This TL;DR attempts to distill this distillation even further. I highly recommend reading the original article, which is available here.
There has been little or no inflation adjusted income growth for the lower 60% of American household incomes since 1980.
The wealth gap is the highest since the late 1930s.
American workers in the lowest earning quartile have one of the lowest probabilities of moving into a higher quartile in the entire world.
There is a income/education/wealth/opportunity gap that has been rampantly growing.
The current American system is largely failing children. Many children in the USA are poor, physically and mentally malnourished, and poorly educated.
The income/education/wealth/opportunity gap reinforces itself.
"To me, leaving so many children in poverty and not educating them well is the equivalent of child abuse, and it is economically stupid."
"These gaps weaken us economically because:
They slow our economic growth because the marginal propensity to spend of wealthy people is much less than the marginal propensity to spend of people who are short of money. They result in suboptimal talent development and lead to a large percentage of the population undertaking damaging activities rather than contributing activities."
This income/education/wealth/opportunity gap breeds populism on both the left and right, which is not condusive to a stable economy or political system. In the event of an economic downturn, history shows that there is an extremely high probability of conflict and revolution. Conflict and revolution are not good for growing the economic pie. But history also shows that they also fall short of their promise to redistribute the pie as well.
So in summary:
INVEST IN CHILDREN.
ENSURE THEY HAVE SAFE HOMES AND STABLE GUARDIANS.
How to fix capitalism in America: