Category Archives: Income disparity

Wolf Richter: How Soaring Housing Costs Impoverish a Whole Generation and Maul the Real Economy

Housing costs are beyond the reach of many middle class earners. And while that is no news, housing has been the engine of past recoveries. So inflated home prices are part of why the economy will stay mired in low growth.

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Branko Milanovic: Income Inequality and Citizenship

Dave here. This is a readable discussion of inequality between nations, but the conclusions suffer from the conceit that people – particularly people in poor countries – have universal freedom, wherewithal and mindset to pick and choose what country to which they want to emigrate. But other than that nitpick, worth a read. By Branko […]

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Tom Engelhardt: The New American Order: 1% Elections, The Privatization of the State, a Fourth Branch of Government, and the Demobilization of “We the People”

Based on developments in our post-9/11 world, we could be watching the birth of a new American political system and way of governing for which, as yet, we have no name.

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What Happened to the “Feel Good” Economy?

Even though this video is from December (hat tip Philip Pilkington), it gives an informative and nuanced explanation of the rise in income inequality and consumer debt levels, and how they play into our unimpressive “recovery”. The interview of Steve Fazzari and Barry Cynamon by Marshall Auerback discusses how the rise of inequality has many drivers, but the biggest appears to be financialization which is so pervasive and well-protected politically as to make it hard to roll back. It also put focus on key metrics that often get lost in conventional coverage. For instance, inflation and productivity adjusted wages would now need to be over $20 to match the levels of the 1960s.

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Nomi Prins: The Volatility/Quantitative Easing Dance of Doom

The battle between the ‘haves’ and ‘have-nots’ of global financial policy is escalating to the point where the ‘haves’ might start to sweat – a tiny little. This phase of heightened volatility in the markets is a harbinger of the inevitable meltdown that will follow the grand plastering-over of a systemically fraudulent global financial system.

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