John Mauldin is has posted on inequality again, and this week’s is really a good one. He answered the question I had about why is saving a bad thing. IT’S NOT.
At any rate, he is dissecting a paper, “Inequality, the Great Recession, and Slow Recovery,” by Barry Z. Cynamon and Steven M. Fazzari. It’s fortuitous that these guys managed to write a paper espousing all of these questionable ideas – how inequality causes bad economic outcomes, how consumer spending is the only thing that matters, saving is bad, etc. Mr. Mauldin, as usual, writes an understandable and common sense critique.
Can’t wait for part 2 next week.