Many in Washington, mostly Republicans, argue that if taxes were reduced for the wealthy they would ivest more and the result would be more jobs for the working/middle class Reduce taxes and regulation and the private sector will pour funds into investments that in turn will get the economy growing and unemployment will drop swiftly.
To them I say: It's demand stupid. America's business community is already flush with cash. They are not investing because the middle class is not buying the goods and services that these companies produce.These corporations are not run by the builder of The Field of Dream. They do not believe if they build one more new home the middle class will buy it.
The income inequality in America evolved over the last thirty years and there is no magic formula that will change it overnight. Change will come as America wakes up and demands that our economic system once again becomes a Free Market system. At present many of our industries are contolled by a small group of companies that can dictate price and quality of products produced. For this to happen, our politicians must enforce anti-trust laws against these large corporations. These companies are focused on keeping their power rather than serving the market. Change will not happen as long as corporations are bribing politicians with there large political contributions. This in turn is why it is necessary to amend the constitution banning contributions from large corporations and unions.