Venture Capitalist: The Middle Class (Not the Wealthy) Are the Engine of Economic Growth

On Friday, Marketplace had an interesting interview with a wealthy venture capitalist named Nick Hanauer who recently gave a TED talk on income inequality that generated some controversy because he made a strong case for raising taxes on wealthy earners. Give a listen to the full interview below.

Here's the takeaway:

Prosperity for people like me is a consequence of the number of customers I have, not the tax rate that I pay. If low taxes were the way that people like me created wealth, then we'd be starting our companies in the Congo or Somalia or Afghanistan, but we're not. We come to places where there are lots and lots of customers...

If we can come to a more healthy conclusion, which is that it is the middle class and the success of the middle class that animates future and shared prosperity and begin to invest again in that middle class; and for wealthy citizens like me to begin to pay more of our fair share, I think the future is very, very bright. And I think that you'll see the economy begin to grow quickly again and I think you'll begin to see the median wage grow again and I think the country will be in super shape.

The full four-and-a-half-minute interview is right here:

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