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This is how http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_251-300/WP282.pdf http://www.peri.umass.edu/fileadmin/pdf/working_papers/worki

by mavdi 11y ago

This is how http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_251-300/WP282.pdf http://www.peri.umass.edu/fileadmin/pdf/working_papers/worki... Basically income inequality and a fading middle-class causes a downward spiral of the rich having too much money to care and taking ever greater risks for rewards.

ArkyBeagle 11y ago
I figure income inequality is principally fueled by anemic growth, which may well be caused by low monetary growth and low interest rates. The rich now are just "paper rich" (outside of bubbly-again real estate) and the physical portions of the economy remain stagnant. Some kind person on HN actually clued me to this, and that was s serious penny drop. And of course I lost the post... Could be wishful thinking on my part, but I read "Monetary History" years ago and it took root.