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- Pope Francis Vernon Buffett argues that free markets cannot address growing inequality.
- Pontiff said in a letter to the bishops of the Catholic Church over the weekend that “magical principles” such as trickle-down economics would not solve all of society’s problems.
- Buffett argued earlier this year that markets have replaced some skills but not others, exacerbating inequality in the absence of government intervention.
- Billionaire investors told Yahoo Finance that “it’s not a diabolical conspiracy or anything,” adding that “it’s because of the market system.”
- Visit Business Insider’s homepage for more stories.
Pope Francis echoed Warren Buffett over the weekend in a letter to bishops of the Catholic Church entitled “Fratelli Tutti” blaming absolutist capitalism for growing inequality.
“The market, on its own, cannot solve every problem, however, we are told to believe in this pride of neoliberal faith,” Pope said.
“Neoliberalism simply reproduces itself by resorting to the magical principles of ‘spillover’ or ‘trickle’ – without using the name – as the only solution to social problems,” he continued, adding that “trickle-down economics” or the idea of amassing wealth Money automatically falls into the pockets of the poor.
The pope pointed to the consequences of epidemics, including worldwide unemployment spikes, as evidence that “not everything can be solved by market freedom.”
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Buffett, a billionaire investor and CEO of Berkshire Hathaway, voiced a similar view in a Yahoo Finance interview earlier this year.
He said there is no question that as capitalism becomes more progressive, people with market skills, and those who demand the market and will widen the gap between others, do nothing between the government.
Buffett further added, “It’s not a diabolical conspiracy or anything,” because of the market system. “
The so-called Sage of Omaha proposed two ways to address the issue: a more noble-earned income tax credit and a steer tax on ultra-wealth to reduce the tax burden on working people.
Buffett, who plans to donate 99% of his wealth to philanthropy, has repeatedly called on politicians to raise taxes on spruce. Current law allows him to pay less than his secretary.
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Pope and .Shi
Buffett has mentioned the pope a few times over the years.
In a 2006 letter to shareholders, Berkshire Bose expressed outrage that criticizing the efficient market theory, or that stock prices reflect all available information, is an amount of condemnation.
“A finance instructor who had the nerve to question EMT was as likely to get a big promotion as Galileo was named Pope.”
Buffer also mentioned Pontiff in his 1986 letter, a story focusing on the obsession of Berkshire administrators.
“Our prototype for business zeal is the Catholic tailor, who used his small savings for financial years for a pilgrimage to the Vatican.”
“When he returned, he held a special meeting to get his first hand account of the Pope’s pope,” Buffett continued. “Tell us,” said the eager believer, “what kind of fellow is he?”
“Our hero didn’t spend a word: ‘He’s 44, medium.’
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