America has the largest economy in all history along with the largest number of millionaires and billionaires, which explains why we also lead the developed world in income inequality. When I entered the labor force in 1965, the average CEO received $20 for every dollar earned by an average worker; today, the ratio is $354 to $1. Compounding our revenue deficiency is the fact we also lead the world in tax evasion. "Carried interest" alone allows billionaire hedge funds and private equity managers, earning $467,000 per hour in elite cases, to pay a 20% instead of 39.6% tax rate. Shortfalls are made up by productive workers' tax contributions or by government slashing social spending programs. The US is simply following an "eternal political triangle" that was old when Aristotle first warned about "wealthy families (emerging) within democracies to become a financial oligarchy. Book V of Politics traces how
these oligarchies indebt a rising proportion of the population to themselves, creating hereditary estates on which to found aristocratic dynasties.
"In time, rivalries develop within the leading aristocratic families, and some decide to overthrow other elites of the old order by 'taking the multitude into their camp.'
"In the 7th century BC, populist tyrants gained power in Corinth and other wealthy Greek cities by canceling the debts, redistributing the land and driving the old ruling elites into exile.
"Democracy was introduced more peacefully by reformers in 6th-century Athens.
"Solon banned debt bondage in 594, and Kleisthenes locked in political democracy in 508.
"But an oligarchy emerged once again, to be followed by aristocracy, democracy, and so on in Aristotle’s eternal political triangle. Destruction of democracy by the creditors and property owners who..."
http://store.counterpunch.org/wp-content/uploads/2015/08/Killing-The-Host_PDF_V7.pdf (p.191)