A review of the book “The Unfair Trade: How Our Broken Global Financial System Destroys the Middle Class,” by Michael J. Casey is presented.
The article considers economics research on the impact of income inequality on financial crises. Studies indicating that increased income inequality in the U.S. generated increased demand for debt leading to the housing bubble of the 2000s and subsequent global financial crisis are contrasted with research finding that it is cheap and widely available debt itself that causes crises, with income inequality not a factor.Read More
The article discusses economic opportunities in the U.S. as compared to other countries and regions such as Western Europe, Japan, and New Zealand. The author states that in the U.S., there is less equality in terms of economic opportunity than there is in the majority of the Western European nations. He argues that the increasing income inequality in the U.S. might actually be the reason why the U.S. is not as mobile as it once was in terms of income. He cites a 2007 study by the Organisation for Economic Cooperation and Development (OECD) which states that the U.S. is behind countries such as Denmark, Canada, and Finland in terms of income mobility.Read More