It’s the Concentration, Stupid 0
Robert Reich on Fresh Air:
And if most of the American economic gain goes to the top, if the top are taking home almost a quarter of all income that is generated in society, the vast middle class just doesn’t have the purchasing power.
They can’t go deeper and deeper into debt. They can’t work longer hours. They’ve just, they’ve exhausted all of their coping mechanisms. And meanwhile, people at the top are taking home so much that they are almost inevitably going to speculate in stocks or in commodities or in whatever the current speculative vehicles are going to be, which causes the economy to become unstable anyway.
And that combination of a kind of unsustainable debt loads for the middle class, in fact, now the middle class can’t even go back into debt, there’s not nearly enough demand for all the goods and services the American economy could produce and can produce at full employment coupled with a lot of speculation.
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