Johnston: Deliberate destruction of the middle class

One of my favorite financial journalists, David Cay Johnston, in this short interview describes how in the U.S. local tax breaks and subsidies are net "wealth destroyers" which do not abide by the rules of capitalism, i.e. raising funds on the capital markets, taking risks, and reaping rewards. Rather, these are special breaks given to politically connected companies and individuals at our expense.

All you fiscal conservatives and Tea Partiers, listen up! This is the real system of corporatism you should be fighting against, not "welfare" for erstwhile working people rocked by the Great Recession. He estimates that states spend $70 billion a year in subsidies, and the federal government spends about $1 trillion a year in subsidies to corporations and wealthy individuals with billion-dollar incomes.

Johnston asks simply, "Is that capitalism?"

Watch the interview!

The Rich Get Richer and They Have You to Thank, Says David Cay Johnston

By Peter Gorenstein

November 19, 2010 | Tech Ticker, Yahoo! Finance