4 ms·

This piece and the book it refers to talk a bit about that idea: Essentially that the diminishing marginal utility of wealth and its growing concentration is cr

• JMTQp8lwXL 7y ago
  By diminishing marginal utility of wealth, I presume you mean there is less incentive to spend money, the more of it you have. Because wealth is increasingly concentrated, less of it gets spent. Monetary velocity never recovered since the financial crisis. In fact, from 2011 onwards, monetary velocity has been at its lowest levels ever recorded. https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V