Private Equity is Making Everything More Expensive

In this video from Robert Reich, Bill Clinton’s Labor Secretary, he analyzes how investment in private equity is driving up the cost of everything from healthcare to housing. As they drive investment into these things and demand greater returns, prices go up to whatever they think the market can bear. Sounds like typical capitalism right? Here’s the reality, their increased returns are money that is being taken directly from your pocket. When people can’t buy a house, they rent and pay someone else for the privilege of not sleeping outside. In healthcare, rising costs mean higher insurance premiums and so on. Their wealth comes from the pocket of ordinary people.