Full transcript. Excerpt below:
ZAKARIA: My next guest is the author of what some are saying will be the most controversial, perhaps even hated book of the year. "Unintended Consequences" goes against the grain in arguing that the rise of the 1 percent is actually good for the 99 percent.
The author says that contrary to what the Occupy Movement might say, inequality does have its benefits. Ed Conard is here to explain. He is a former managing director at Bain Capital. Yes, he worked closely with Mitt Romney and is now one of his top donors. He joins me now.
So, Ed, let's start by just -- explain to me why is the rise of the 1 percent good for the economy?
ED CONARD, AUTHOR, FORMER MANAGING DIRECTOR, BAIN CAPITAL: It's not really the essential focus of the book. The book is about how to get the economy to grow faster. That growth, in the long run, is powered by innovation and risk-taking.
And part of what the book argues is that the pay-offs for risk- taking are essentially to getting more risk-taking in this economy and that that's good for the middle class and the worker poor.
ZAKARIA: So you want people to invest, take risks with their capital so that you spur innovation?
CONARD: Yes, although I think the economy has changed significantly from where it was in the 1950s, when capital investment to build an automotive industry and a highway system were essential to growth, to one today were 13 guys on a computer can create Instagram and a billion dollars of value in two years.
It's now much more powered by risk-taking than it is by the funding of investment.