Income Inequality and Financial Crisis

The Great Recession of 2007-9, like the Great Depression in 1929-33, was triggered by a massive financial crisis: stock market crash, falling asset prices, bank failures, and liquidity crisis. One of the key triggers of instability in banking and the resulting financial crises is what economists call "over-leverage", meaning too much (private) credit and too … Continue reading Income Inequality and Financial Crisis

Working America and Income Inequality

I just discovered a tremendous research source for students (and anybody else) who are curious about changes in income inequality, growth, health, education, etc. in America over a 90+ year period.  It's very flexible and interactive with graphs, etc.   It's The State of Working America, published by Economic Policy Institute. It has tremendous library of … Continue reading Working America and Income Inequality

Who Says Keynesian Policy Doesn’t Work?

It's become fashionable, particularly among Republicans and Conservatives, to claim that Keynesian Policy doesn't work despite the empirical record. Methinks they don't know what Keynesian policies are analyses really are. Mark Thoma points out: Issa: Everyone Knows That the Policies I Called for Don't Work Republican House member Darrell Issa has an op-ed in the … Continue reading Who Says Keynesian Policy Doesn’t Work?

30,000 Pigs?

Department of "Don't believe everything you see in the newspaper": “More than 30,000 pigs have been floating down the Dawson River since last weekend, with a piggery at Baralaba paralysed by flooding which has killed most of its bred live-stock. Baralaba Butchers’ Sid Everingham ... said: ‘We’ve lost probably about 30,000 pigs in the floods … Continue reading 30,000 Pigs?