Is a minority stealing your future?

[Guns Guns Guns]

Are the top tier of super-wealthy Americans and the banks and corporations they largely own sitting on too much cash?

​

Some economists argue that growing inequality has slowed job growth coming out of the past three recessions.


It used to be — since the depths of the Great Depression — that the economy would come sprinting out of recessions with a burst of hiring.


But the recovery of 1991-92 was weak, the bounce-back after the 2001 recession was weaker and both of them look like booms compared to what has followed the vicious drop of 2008-09.


If inequality truly is the prime culprit, how does it dampen economic growth?


When money is spread among many households living paycheck to paycheck, some economists say, that money is likely to get spent.


If that money goes to a rich family instead, yes, there will be purchases — often big-ticket items. But much of the money will go to investments and savings.


So the result of the income shift would be less demand in the daily economy.


In good times, that is not necessarily a bad thing because the savings find their way into investments, which go to things that lead to better growth in the future.


But right now, it just sits in a bank...







http://www.ajc.com/business/wealth-divide-might-stifle-1208113.html

 

[The Dude]

Only if they work in obamas green jobs

 

[Guns Guns Guns]

Economists used to think that efforts to make incomes more equal had to make the economy less efficient. But now, they are not so sure.


A study by two economists with the International Monetary Fund compared data from 15 nations from 1950 to 2006 and found that when inequality rose, it undermined growth.


“A rising tide lifts all boats and our analysis indicates that helping raise the smallest boats may help keep the tide rising for all craft, big and small,” wrote Andrew Berg and Jonathan D. Ostry. “Reduced inequality and sustained growth may be two sides of the same coin.”



http://www.ajc.com/business/wealth-divide-might-stifle-1208113.html

 

[The Dude]

Not bad for a GED, sure use IMF cause ou never had economics in college.

 

[Rune]

Don't shareholders realise that reducing CEO compensation would increase dividends?

 

[Guns Guns Guns]

Because the Reagan and Bush tax cuts and 'business-friendly' deregulation/union-busting policies disproportionately diverted wealth into the investment and savings accounts of the wealthiest Americans, banks, and megacorporations, the middle class is being squeezed out of the job opportunities that used to occur after a recession rebounded and demand returned.


The Right is determined to starve government of revenue, too, so intervention and regulation aren't options for redress.