The U.S. is deeply divided politically and socially because of an escalating wealth disparity between the top and bottom tiers, according to Ray Dalio, who manages the largest world's hedge fund.
That gap is "our biggest economic, social and political issue" and played a significant role in Donald Trump's election victory, the head of $122 billion Bridgewater Associates said in a LinkedIn post Monday.
To bridge the gap, Dalio prescribes a re-examination of how the nation is using its resources, and an unspecified wealth transfer. The issue has been one of his favorite topics, and one he said he will continue to visit.
"The polarity in economics and living standards is contributing to greater political polarity," Dalio wrote. "It is also leading to reduced trust and confidence in government, financial institutions, and the media, which is at or near 35-year lows."
To make his point, Dalio divides the country into two groups — the top 40 percent and the bottom 60 percent. Looking specifically since 1980, the top 40 percent has seen growth in real income while the bottom 60 percent has not. As a result, the top 40 percent hold 10 times as much wealth as the bottom 60 percent, up from six times as much in 1980, according to statistics he cited.