At times, a sense of fairness trumps such economic considerations, and this is one of those times.<\/p>\n
Here\u2019s why. Americans have traditionally been unperturbed by inequality levels that would provoke Europeans to turn out their governments. And there is no indication that the most extreme populist politician, Democratic presidential wannabe John Edwards, is gaining much traction for his argument that there are \u201ctwo Americas\u201d\u009d, one very rich, the other very poor.<\/p>\n
But there is some indication that Americans worry that it is no longer the case that everyone can get rich, or at least look forward to a rising standard of living. Add to that the decoupling of some high incomes from performance. Too many failed executives leave with golden good-byes after mismanaging the companies they were supposed to take to the next level of profitability.<\/p>\n
Then there is the not-so-trivial matter of the flamboyant life styles of the private-equity class. Black-stone boss Steve Schwarzman threw a very public birthday party for himself at a cost variously estimated at between $3m and $15m. Tales of $5,000 bottles of champagne and even more expensive female companionship, lavish parties in far-flung places, with private performances by the world\u2019s most highly paid entertainers, create more than harmless gossip. They create an atmosphere in which it is difficult for politicians to defend a tax structure that claims 10%-15% of the gains on private-equity deals, but 40% of the overtime wages of moderately well-paid workers.<\/p>\n