The 99 per cent has a new ally from the financial sector—John Bogle, a legendary investor who founded the Vanguard Group and is now President of the Bogle Financial Markets Research centre.
Admittedly, he’s still quite the capitalist, but he’s joining the likes of Warren Buffett in supporting legislation that would even the level the playing field and cause investors to contribute their fair share.
“There should be no tax rate lower than the one for people who earn money by the sweat of the brow and the [brilliance] of their brains,” he told investors at a Bloomberg Link conference of Portfolio Managers today. “Why would you give a lower tax rate to [anyone] other than the people that are working every day?”
In fact, he added, the privileges the financial sector gets have made it an inefficient at doing what it was made for—fostering growth. “We have half of 1 per cent of our capital system being devoted to capital formation, and 99.5 per cent being devoted to—well, you can call it anything you want but Teddy Roosevelt called it gambling and so I’ll say it in his words.”
That’s not something any of the Republican candidates appear to be doing, so he’s cautiously leaning towards favouring the reelection of President Barack Obama.
“I am a lifelong Republican, but unfortunately, he lamented “I am what they would call an Abraham Lincoln Republican or a Teddy Roosevelt Republican, and they are a vanishing breed.”
A long-time proponent of value investing, he concluded, “We’ve got to stop looking at the short term rather than the long term. We’ve got to invest rather than speculate. And we’ve got to take cost out of the equation.”