"The Lady is very confused..."

Lady Rothschild: Capitalism Should Be Socialism

Robert Wenzel

Lynn Forester de Rothschild (60) who is married to Sir Evelyn Robert de Rothschild (83) has a problem with concentrated wealth. It is apparently, though, just a "theoretical" problem, since she never mentions giving any significant portion of the wealth controlled by her and her husband.

The couple's estimated net worth is $20 billion.

She detailed her latest "concerns" during an interview on CNBC:.

Nothing is wrong with capitalism (but) it is meant to be a process that creates broadly-shared prosperity. So if capitalism was really working, then the term, the 'One Percent,' would not have gained the traction that it has, so how do we make it work for more people?

For starters, she is confusing capital with consumption goods. Just because many people don't own oodles of capital doesn't mean they don't benefit by the consumer goods created by the capital. That's what increases the standard of living, production of consumer goods. Secondly, the great barrier to new wealth is government regulations which make it extremely difficult to compete with established wealth. If Lady Rothschild really wanted to open the way for more capital accumulators, she should be decrying regulations that limit competition.

As for her claim that capital is meant as a process for "shared prosperity," she sounds as though she is implying that capitalism should be socialism.

The Lady is very confused.

Link:
http://www.economicpolicyjournal.com/2015/06/lady-rothschild-capitalism-should-be.html