We are a price taker. The most benign outcome is to see other economies with yawning income/wealth gaps crash into a wall and so the price change and we have more wiggle room and so avoid the same fate because the top 10% are frigthened. In this UNLIKELY scenario we do not need to narrow the gap here rapidly and at worst let it grow more slowly than others.
The worst outcome is 90% of our people are very unhappy and throw out this government with nobody from the opposition able to form a government that inspire confidence.
The lesser evil is a real estate and stock market crash. The quickly made wealth disappears overnight except for the astute ones who have gone to cash first. The wealth gap narrowed and we are saved.
So which one?
Try to get the 90% to narrow the gap with the 10%. That is wishful and at best glacially slow. It is rowing against the rapids. More practical to wait for the water to stop coming down and stay alive doing so. The economy move in cycles, it's a matter of time.
Update: July 3 8:30pm
Saw this first thing in the morning. I kept asking myself, how the folks know if we have an adequate margin of safety?
No safety margin or factor is sufficient unless you have knowledge of the risk. Not that it must, but don't be surprised if all these end in tears for many.
Update: July 6
Quoting myelf: Try to get the 90% to narrow the gap with the 10%.
ST published on July 4
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