Fareed Zakaria: My next guest is the author of what some are saying will be the most controversial, perhaps even hated book of the year. Unintended Consequences goes against the grain in arguing that the rise of the 1% is actually good for the 99%.
The author says that contrary to what the occupy movement might say, inequality does have it’s benefits. Ed Conard is here to explain. He is a former managing director at Bain Capital. Yes, he worked closely with Mitt Romney and is now one of his top donors.
He joins me now.
So Ed, lets start by just explain to me why is the rise of the 1% good for the Economy.
Ed Conard: Sure, it’s not really the central focus of the book. The book is about how to get the economy to grow faster. That economic growth in the long run is powered by innovation and risk taking. And part of what the book argues is that the payoffs for risk taking are essential to getting more risk taking in this economy and that good for the middle class and the working poor.
Fareed Zakaria: So you want people to invest, take risks with their capital so that you spur innovation.
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