Inequality Hurts the Economy

For every dollar a consumer spends, more than ever goes to corporate profit and less than ever goes to wages.  A company earns more profit by paying workers less or by hiring fewer people. But those wages turn into revenue for other companies.

In short, our current system and philosophy is creating a country of a few million overlords and 300+ million serfs.

Update (November 27, 2014):  In a paper for the Institute for New Economic Thinking, Barry Cynamon and Steven Fazzari argue that the bottom 95 percent have lost income share since 1980 and used debt to maintain consumption.  When borrowing got tighter in the Great Recession, demand dropped and has lead to a sluggish recovery.