Monday, June 25, 2012

More bleeding by leeches

Joseph Stiglitz shows how the Wall Street masters of their domain - who esteem themselves as supremely rational - set up the entire economy to fail:

The country faces enormous inequality, the largest among advanced countries. Since those at the top consume a much smaller fraction of their income than the rest, when money moves from the bottom to the top — as has been happening in the U.S. for the past three decades — total demand is weakened. The weaknesses in the economy today arise from lack of demand; firms won’t invest if there is no demand for their products.
It’s not only inequality in income and wealth that is making us frail, but inequality of opportunity. We think of our country as a land of opportunity. In fact, the life prospects of a young American are more dependent on the education and income of his parents than in any of the advanced countries for which there is data. The American Dream has become a myth. 

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