This blog above all seeks to promote a new system, called Capital-Labour Parity. The main mechanism to do so would be to create a real capital-labour parity wage. That is a wage adjusted to asset inflation and not price-level inflation (Consumer Price Index), as real wages are. This alone would halt inequality growing exponentially.
For decades, real wages in the west have stagnated and this is especially shown by comparing Western countries to China.
However, if an economist conducted a real capital-labour parity wage based upon three American indexes and three European ones such as shown below, the public would be stunned by how far their wages have fallen in real capital-labour parity terms. Just see the graphs below to see how asset prices have inflated:
Nominal Dow Jones Industrail Average (DOW), Nominal Standard & Poor's 500 (S&P 500), Nominal Nasdaq Indexes
The Financial Times Stock Exchange 100 Index (London Stock Exchange)
The Morgan Stanley Capital International Europe (MSCI Europe) Index
The Deutscher Aktienindex (DAX) Index (Frankfurt Exchange)
As the DAX, FTSE, MSCI, Nominal DOW, Nominal S&P 500 and Nominal Nasdaq Indexes all show stocks have astronomically prospered while real wages have hardly risen, stagnated or even decreased in most modern Western countries. This is a massive problem as stock-markets are signs of how the wealthiest have prospered (those who own stock), whilst real wage charts signal how supposedly the majority of the population have fared (though they include the wages of the top 1% of earners, which distorts the figures for the majority).
To achieve capital-labour parity, wages would have to increase at the same rate as capital like stock. That would mean your wages would have and I argue should have rose as fast as the stock market indexes shown above if you are from Europe and America for instance. This is actually the most practical comparison to make, as it alone will prevent inequality from rising exponentially which could even mean progressive taxation needn't be so important.
The answer to Capitalism has been staring at us in the face, so to speak. Let us hope that economists and politicians take note.
*Please note, obviously such a policy should be adopted to pin labour wages to assets, only after the current horrendous global asset bubble is popped first.
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