A Wealthy Capitalist on Why Money Doesn’t Trickle Down

Nick Hanauer, venture capitalist and self-described "plutocrat," says a healthy economy and an effective democracy depend on a thriving middle class of workers. The fundamental law of capitalism is: When workers have more money, businesses have more customers. Which makes middle-class consumers—not rich businesspeople—the true job creators. A thriving middle class isn’t a consequence of growth—which is what the trickle-down advocates would tell you. A thriving middle class is the source of growth and prosperity in capitalist economies. Our economy has changed, lest you think that the minimum wage is for teenagers. The average age of a ...