Sunday, September 29, 2013

Income Inequality Due to U.S. Policy: Concordia Kids to Rescue

Washington's Blog ran three posts on inequality recently:

1.  The Stunning Truth About Inequality in America. (click here)
2.  Bad Government Policy Has Created the Worst Inequality on Record...and It's Destroying Our Economy (click here)
3.  Who’s Who of Prominent Economists and Billionaire Investors Say that Runaway Inequality Harms the Economy(click here)

Fortunately, the two young founders of the Concordia Summit held a two day meeting on the topic.  These two pedigreed young men grew up on the prosperous side.  Family and blue blood school connections enabled them to throw together a surprise meeting where President George W. Bush attended in 2011.  President William Jefferson Clinton headlined their event in 2012.

HuffPo reported on the third Concordia Summit:

The next global financial crisis has already started, in the form of nearly 75 million unemployed young people around the world.  If this mass of jobless youth doesn't find work, the consequences will be dramatic, a group of politicians and economists at the Concordia Summit here Friday warned -- from increased violence in the Middle East to ever-higher rates of income inequality in the United States to increased political unrest in Europe.

The article does not mention U.S. policy, emanating from the White House and Capital, produced record income inequality.  It does not say private equity underwriters and their billionaire founders have long had their sights set on public-private partnerships (P3) and have billions in dry powder.

Concordia, a Red team version of the Clinton Global Initiative, plans to lever public money for private gain via P3 expansion.  Note the implied frame:  If the U.S. doesn't P3 for youth employment, even higher rates of income inequality will manifest.  More violence in the Middle East!  These aren't bold predictions, they're the current trajectory.

Might one expect a P3 Fellow to conduct a serious study on public-private partnerships and publish the results?  That wasn't the case when P3 Fellow Daniel Bressler summarized his stint at Concordia.  His fellowship was full of stimulating discussions.

It might be more important to be a jolly-good fellow, one who doesn't make waves or pull back the curtain on the Government-Corporate Monstrosity, Eisenhower's MIC on $ trillions in federal steroids.

At least two youths received serious investment from Concordia.  It remains to be seen how far their wealth grows.  I see a P3 beanstalk for these two Jacks.