The Economy Cannot Recover As Long As Inequality Continues to Skyrocket … But Government Policy Is INCREASING Inequality
by Washington’s Blog
July 6, 2011
The Economist noted in January:
Hu Jintao, David Cameron, Warren Buffett and Dominique Strauss-Kahn … have all worried, loudly and publicly, about the dangers of a rising gap between the rich and the rest.
A new survey by the World Economic Forum, whose annual gathering of bigwigs in Davos begins on January 26th, says its members see widening economic disparities as one of the two main global risks over the next decade (alongside failings in global governance).
Numerous prominent economists in government and academia have all said that large inequalities can cause – or at least contribute to – financial crises, including:
John Kenneth Galbraith
Marriner S. Eccles (Federal Reserve chairman from 1934 to 1948)
Add Alan Greenspan to the list, who says:
Our problem basically is that we have a very distorted economy, in the sense that there has been a significant recovery in our limited area of the economy amongst high-income individuals..