Unintended Consequences’: Former Bain Exec Sparks Controversy Over Income Inequality, Edward Conard sets out to provide "a prescription for how to grow the economy."
Thanks to a recent NY Times Magazine article, and because he worked closely with GOP presidential hopeful Mitt Romney at Bain Capital, Conard has become a lightning rod for controversy -- described by some as a champion of income inequality.
There are elements of this in Conard's book -- such as when he argues the societal benefits of economic competition is closer to 20-to-1 -- meaning society gets $20 of value for every $1 an investor earns -- vs. the 5-to-1 level commonly cited. But, in reality, Conard's book is pretty standard conservative economic fare wrapped with a philosophical view that is unique, at least in its public expression.
"Underneath the book is a moral argument," he says. "Talented people have a responsibility to get the training they need to be successful risk takers and go out there to take risks. What I see is surplus of talented people and a shortage of people willing to take the risks."
Then there are people who have already achieved great wealth, either through their own talents and labor or thanks to the success of their predecessors. Typically speaking, these people are not prone to take great risks, in part because they have so much to lose.
But Conard doesn't make a big distinction, suggesting there are people who take "career risks" by leaving their jobs to start a company, and people who take "financial risk" by supporting those entrepreneurs.
About the only time he was at a loss for words is when I asked him if Mitt Romney is still taking risks and thus deserves to pay a tax rate based on the carried interest tax deduction paid by private equity funds, or whether that rate itself is fair.
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