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It is worth also reading Paul Krugman's take on this blog post: http://krugman.blogs.nytimes.com/2015/03/30/ben-bernanke-blog-blogging/ http://krugman.blogs.ny

It is worth also reading Paul Krugman's take on this blog post: http://krugman.blogs.nytimes.com/2015/03/30/ben-bernanke-blog-blogging/ http://krugman.blogs.nytimes.com/2015/03/30/ben-bernanke-blo... In particular Krugman notes that the average retiree has basically nothing in interest earnings. The median retiree has a bit more than $100K in total net worth (most of it in housing), and earns bupkis in interest.

cylinder 12y ago
Raising interest rates will actually improve the economy for this reason, but policy makers don't understand this. Read more here http://www.amazon.com/The-Great-Rebalancing-Conflict-Perilous/dp/1491531339 http://www.amazon.com/The-Great-Rebalancing-Conflict-Perilou...
Balgair 12y ago
I mean, if that isn't the scariest thing out there in the US, then I really don't know what is (excepting nukes, MRSA, and the like). That aging population is going to wreak havoc on the economy, with the exception of elder care. Oh, and when is that all supposed to be timed to go off? About 2030, just in time for 9 billion other humans to go about their lives too, water wars really starting to heat up, etc. The 2028 and 2032 elections are going to be a hell of a thing as REAL politics and compromise get going.
nwah1 12y ago
Inequality is also explained, to a shocking extent, by housing. And housing is a euphemism for land. http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/19/meet-the-26-year-old-whos-taking-on-thomas-pikettys-ominous-warnings-about-inequality/ http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/19/m... Rent rises whenever things improve, but those returns don't help everyone, nor do they help the people responsible for the improvements. Rather, they help the select fortunate landholders who are profiting by owning prime locations, particularly urban locations.

cylinder 12y ago

Raising interest rates will actually improve the economy for this reason, but policy makers don't understand this. Read more here http://www.amazon.com/The-Great-Rebalancing-Conflict-Perilous/dp/1491531339 http://www.amazon.com/The-Great-Rebalancing-Conflict-Perilou...

Balgair 12y ago

I mean, if that isn't the scariest thing out there in the US, then I really don't know what is (excepting nukes, MRSA, and the like). That aging population is going to wreak havoc on the economy, with the exception of elder care. Oh, and when is that all supposed to be timed to go off? About 2030, just in time for 9 billion other humans to go about their lives too, water wars really starting to heat up, etc. The 2028 and 2032 elections are going to be a hell of a thing as REAL politics and compromise get going.

nwah1 12y ago

Inequality is also explained, to a shocking extent, by housing. And housing is a euphemism for land. http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/19/meet-the-26-year-old-whos-taking-on-thomas-pikettys-ominous-warnings-about-inequality/ http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/19/m... Rent rises whenever things improve, but those returns don't help everyone, nor do they help the people responsible for the improvements. Rather, they help the select fortunate landholders who are profiting by owning prime locations, particularly urban locations.