Wealth Redistribution: A Bad Idea for Americans
Azim Nakhooda, Cleveland financial advisor, explains wealth redistribution and its impact.
CLEVELAND, OH — November 2, 2016 - Azim Nakhooda, a founding partner and principal of Cedar Brook Group, one of the region’s largest independent wealth management firms, analyzed data regarding the concept of wealth redistribution and suggests it’s bad for Americans.
Many of the statistics surrounding the "wealthy" are skewed enormously by the upper 1/10th of the 1%. While these billionaires might draw envy, and even scorn from others for their largesse, the reality is that there is a fundamental profitability, tax, and lifestyle divide amongst even the top strata. Thus, redistribution tactics run the risk of harming more professionals, small business owners and other presumably unintended targets.
In his book, The Upside of Inequality – Edward Conrad says that whether achieved through taxation, regulatory restrictions or social norms, redistribution has large detrimental effects on risk-taking, innovation, productivity and growth over the long run, especially in an economy where…talent increasingly drives growth.
“Redistribution's fatal flaw is that it is a unilateral initiative, not a balanced solution. It doesn’t incent or reward, bolster or train, or forgive. In short - it doesn't help those without wealth. It just takes from those who have been successful and evaporates that wealth into inefficiency of a deficit government and a murky global capital market," explained Mr. Nakhooda. "Narrowing the gap in wealth by making the rich poorer, does not make the poor richer," stated Mr. Nakhooda.
About Cedar Brook Group
Headquartered in Cleveland, OH, with offices in West Bloomfield, MI, and Palm Beach Gardens, FL, Cedar Brook is one of the largest independent wealth management firms in the region. Cedar Brook’s seventy-plus professionals deliver customized, personal services including comprehensive wealth strategies, investment and insurance advice, retirement plan consulting, and group benefit programs to physicians, corporate executives, privately held business owners, and families. Cedar Brook has been recognized again as a Top Workplace in Northeast Ohio by Workplace Dynamics according to the Plain Dealer's study. The firm offers securities through Securities America Inc., member FINRA/SIPC. Advisory services are offered through Securities America Advisors Inc., an SEC Registered Investment Advisor. Cedar Brook Financial Partners LLC dba Cedar Brook Group and the Securities America companies are not affiliated.
Securities offered through Securities America, Inc., Member FINRA/SIPC. Azim Nakhooda, Registered Representative. Advisory services offered through Securities America Advisors, Inc. An SEC Registered Investment Advisor. Azim Nakhooda, Investment Advisor Representative. Cedar Brook Financial Partners, LLC and Securities America are unaffiliated.