Wednesday 14 July 2010

 
The Root of Economic Fragility and Political Anger
by Robert Reich: Former secretary of Labor, now Prof. at Berkeley
Robert: The percentage of wealth concentrates in the top hands precisely because those at lower levels over-borrow: those at the top have the money to lend and the firms that supply the goods bought with the borrowed money.
   After the crash, the top 1% lost the income share they had built up prior to the crash due to default, business & bank collapse and swinging rates of income tax. Having learned their lesson in the 30s & 40s, the top 1% now have the government working hard to ameliorate all three. So it is unlikely that they will lose as much of their disproportionate share this time

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