But Stockman says blame lays not with the tax code (indeed, he pioneered a trickle-down approach to taxes under Reagan) but with the Fed.Obama “is talking about a symptom, but he’s clueless as to the cause. The cause is not capitalism. The cause is not some entrepreneur out there trying to invent something and improve the performance of his business. The problem is in the Eccles building [home to the main office of the Fed] and in the 12 people sitting there and thinking that interest rates are some magic elixir that’ll cause this very troubled and difficult economy to revive,” Stockman said.
“It’s not true,” he said. “These people are dangerous and destructive, and they’re creating this massive income inequality that, sooner or later, is going to cause a huge political reaction.”
That said, because Stockman thinks that stocks are set to plunge, he believes that those who have their money in the market are set to lose a great deal of it.
“We’ve had two huge bubbles that collapsed already in this century,” he said. “When this third bubble collapses—and surely it will—I believe that will be the day of reckoning. The credibility of all this central-bank-dominated, Wall-Street-coddling policy will be totally repudiated, and maybe then we can clean the slate and start over.”
Full article: Reagan’s OMB head: Wealth inequality is a problem (CNBC)