Who’s Who of Prominent Economists Say that Too Much Inequality Causes Economic Downturns

Inequality Is Bad For the Economy

A who’s-who’s of prominent economists in government and academia have all said that runaway inequality can cause financial crises:

Indeed, extreme inequality helped cause the Great Depression, the current financial crisis … and the fall of the Roman Empire.

It’s not just liberal economists who say this … many conservatives say the same thing.

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  • Dave_Mowers

    Eventually the majority decides it is not worth even trying since all the gains and opportunity only go to those who already have everything and they quit. United States participation as a percentage of the whole in the stock market; Historic Low. Participation in in the work force as a percentage of the whole; Historically the Lowest Ever. Say goodbye to America, you stole every last penny of wealth from the people who actually work for a living and ruined this country. Fox News cannot change the reality by saying the opposite everyday and when you finally realize it maybe, just maybe you’ll act like a real patriot and start hanging anyone worth more than a million dollars.

  • Too Much Inequality Causes Economic Downturns
    Jct: Too much taking from the poor to give to the rich causes downturns! And they don’t identify the function interest that takes from the negatives to give to the positives. Economists see the symptoms without seeing the cause!

  • Ziggy

    Excellent summary, worth repeating over and over and over again until the message starts truly resonating on Main Street.

    Ultimately, the problems of the political power that money buys has to be addressed. Before that happens, however, the establishment’s nonstop Lie Machines on the Left and Right designed to sow confusion and keep public opinion divided has to be exposed. Rich politicians aren’t the only ones avoiding an honest debate about policies that will improve everyone’s economic prospects – the one percenters in the media who read scripted “news” and commentary (and their bosses behind the scenes) are actually more much more critical at the moment.

    Bust the Lie Machine and its accomplices and then a consensus on Main Street will begin to quickly emerge. All mainstream media is part of the Lie Machine (with a few notable exceptions), and the more populist the rhetoric, the more insidious the damage (I’m looking at you MSNBC).

  • If nothing else, basic economics shows us that the MPC of poorer individuals is much higher than that of richer individuals. Combine this with the fact that MPC drives demand which in turn drives the economy, and the problem is rather self-evident, even if that is far from the only reason it exists.