Creating quite a stir, this article..
Simple logic:
- From the late 1970s, wages lost touch with productivity growth
- To share in the wealth, households reduced savings and increased borrowing
- Helped by financial deregulation and rises in asset prices, leading to a bubble in the latter
- Bubble imploded, household debt remains, leading to increased savings and reduced borrowing to repair balance sheets
Seeking Alpha editorial award and 100+ comments
Rising Inequality And The Economic Crisis – Seeking Alpha
