Founder of world’s biggest hedge fund says capitalism needs urgent reform

Capitalism is no longer working for most Americans, according to one hedge-fund billionaire.

Ray Dalio, founder of Bridgewater Associates LP, the world’s largest hedge fund, says capitalism has developed into a system that is promoting an ever wider wealth gap that puts the very existence of the United States at risk. In the first part of a two-part series published on LinkedIn, the noted investor argues that capitalism is now in need of reform — and says he has a plan for how to accomplish it:

‘I have also seen capitalism evolve in a way that it is not working well for the majority of Americans because it’s producing self-reinforcing spirals up for the haves and down for the have-nots. This is creating widening income/wealth/opportunity gaps that pose existential threats to the United States because these gaps are bringing about damaging domestic and international conflicts and weakening America’s condition.’

Ray Dalio, Bridgewater Associates

Dalio says he was fortunate to grow up in a middle-class family, to be educated at a good public school and to be able to enter a job market that offered him equal opportunity — at the time when most people believed equal education and equal opportunity were fair and productive.

The investor says he became a capitalist at 12 when he earned his first wages by delivering newspapers, mowing lawns and caddying, and invested them in the stock market while it was hot in the 1960s.

That experience led Dalio, now 69, to become a global macro investor, a career he has pursued for nearly a half-century and one that has shaped his understanding of economics and markets. Dalio believes capitalism is the most effective allocator of resources that raise living standards, arguing that communist systems fail because they do not recognize the need

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