Sunday, March 6, 2016

FINANCIALIZATION OF THE ECONOMY

Inequality saps the economy by draining the buying power of
Americans whose incomes have stagnated, forcing them to rely on
debt to fund e
ducation, housing, and health care. At the top, it creates
deep pool
s of wealth that have nowhere productive to go, adding to
a
sset bubbles in capital markets bearing little or no relation to the
we
alth of the over-all economy. (Critics call this the ‘financialization’ of the
economy.) These fallouts from inequality were among the causes of the Great
Recession.”


Packer, George, “The Republican Class War,” pp: 26-34 (32), The New Yorker, November 9, 2015.