Wealth Transfer and the Dangers of Bailouts

The following graph presents the current level of inequality of income distribution in the U.S., which has not been seen since the 1920s.
What has facilitated this wealth transfer and concentration? What kind of impact has this trend had on real economic growth?

The U.S. economy is heavily consumer driven. When the wealth is concentrated into the hands of the very few, the overall purchasing power is dwindling, resulting in depressed markets, reduced investments, and the destruction of jobs and businesses.

As the U.S. has sent the low paying jobs overseas, culminating in the demise of U.S. labor, and shifted its economy from an industrial economy to a service economy, income redistribution has accelerated.

Overconcentration of power and wealth distorts the system. It obstructs a free and fair market principle.

History has repeatedly taught us that without the fundamental reform of the troubled institutions, the bailout alone does nothing to resolve the problems that persist.

Throughout the bailout process, the losses of private entities are transferred to the general public. This rigged capitalism makes a country a failed state.

How are we going to rebalance the concentration of wealth? We know the answer, but moral leadership wouldn’t seem to rise up to such a challenge.