SlideShare a Scribd company logo
1 of 19
Causes, Costs, and Alternatives
Economists consider the link between rising inequality and economic instability
Two

primary causes of
depressions
1. Concentration of Wealth
Exploitation
2. Blockages in the circulation of

money



“Rolling” of money
Spreads crisis
 Political

capture

• Wealthy lobby for
 Tax relief
 Pro-globalization, anti-labor policies
 Deregulation of financial industry
 Stagnant

or declining average wages

• Borrowing to maintain consumption
 Greater

risk preference for rich
Dependent Variable: PCTGDPFALL
Method: Least Squares
Date: 08/04/13 Time: 23:55
Sample: 1 139
Included observations: 139

Variable

Coefficient

Std. Error

t-Statistic

Prob.

C
TOPSHARE
CURRENCYCRISIS
DEBTCRISIS
STOCKMKTCRASH
BANKCRISIS
INFLCRISIS
LIFEEXPECT2000
YRSSCHOOL2000

-0.155758
-0.006128
0.004792
0.018260
0.011438
-0.007440
-0.053885
0.002331
-0.002049

0.088834
0.001435
0.014668
0.031538
0.013044
0.014561
0.018865
0.001339
0.003330

-1.753358
-4.269316
0.326711
0.578981
0.876893
-0.510936
-2.856326
1.741151
-0.615096

0.0819
0.0000
0.7444
0.5636
0.3822
0.6103
0.0050
0.0840
0.5396

R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat

0.244224
0.197714
0.070052
0.637949
176.9535
1.786557

Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)

-0.067373
0.078209
-2.416597
-2.226595
5.251069
0.000011
 Poor

neighborhoods targeted for predatory
mortgage lending
• Fraudulent loans (Ninja loans)

• Excessive fees
• Frequent refinacing
• Fraudulent foreclosures
 Encouraged

by biggest banks and gov’t
 No criminal convictions yet
/

www.ritholtz.com/blog/2011/12/measuring-the-financial-sector-2
From Simon Johnson, MIT
 Encourages

risk

• Perverse incentives
 Distorts

consumption towards luxury goods
 Predatory towards the poor
 Robs resources from the rest of the
economy
• Talent goes to financial sector
 920

suicides
 648 Homicides
 20,240 fatal heart attacks or strokes
 494 deaths from liver cirrhosis
 4227 admissions to mental hospitals
 3340 admissions to state prisons

*Brenner, 1976
CBO February 5, 2013
Source: Reifschneider, Wascher, and Wilcox, Figure 1.1. From Federal Reserve
 Co-op-based economy inherently stable
• Locally-based, resistant to international contagion.
• Co-op workers reduce incomes rather than lay-off

in downturns
• Co-ops limit income inequality
 Investment

is community-determined
 Automation brings leisure, not
unemployment
 Government policy of 100% employment
 Unemployment

Spain:

• 26%
 Basque

• 15%

Region:

More Related Content

Viewers also liked

EChr - CSR & HR - Presentation Dr/ Nicholas Andreou
EChr - CSR & HR - Presentation Dr/ Nicholas AndreouEChr - CSR & HR - Presentation Dr/ Nicholas Andreou
EChr - CSR & HR - Presentation Dr/ Nicholas Andreou
EChr
 
Контент-менеджмент: руководство к действию.
Контент-менеджмент: руководство к действию.Контент-менеджмент: руководство к действию.
Контент-менеджмент: руководство к действию.
Soloten
 
Civic Action Startup Pitch for Startup Weekend Bangalore
Civic Action Startup Pitch for Startup Weekend BangaloreCivic Action Startup Pitch for Startup Weekend Bangalore
Civic Action Startup Pitch for Startup Weekend Bangalore
samcassar
 
Presentation Example
Presentation ExamplePresentation Example
Presentation Example
bluepool
 
Prout e a Economia Descentralizada - Colin Whitelaw
Prout e a Economia Descentralizada - Colin WhitelawProut e a Economia Descentralizada - Colin Whitelaw
Prout e a Economia Descentralizada - Colin Whitelaw
PROUTugal
 
CSR & HR - Presentation Ettore Marchetti
CSR & HR  - Presentation Ettore MarchettiCSR & HR  - Presentation Ettore Marchetti
CSR & HR - Presentation Ettore Marchetti
EChr
 
SoloTours
SoloToursSoloTours
SoloTours
Soloten
 

Viewers also liked (17)

Passive voice by aliona antonevic
Passive voice by aliona antonevicPassive voice by aliona antonevic
Passive voice by aliona antonevic
 
Localizzatore
LocalizzatoreLocalizzatore
Localizzatore
 
Biographies
BiographiesBiographies
Biographies
 
Steven ten Have. Integrated Coastal Zone (Change) Management
Steven ten Have. Integrated Coastal Zone (Change) ManagementSteven ten Have. Integrated Coastal Zone (Change) Management
Steven ten Have. Integrated Coastal Zone (Change) Management
 
EChr - CSR & HR - Presentation Dr/ Nicholas Andreou
EChr - CSR & HR - Presentation Dr/ Nicholas AndreouEChr - CSR & HR - Presentation Dr/ Nicholas Andreou
EChr - CSR & HR - Presentation Dr/ Nicholas Andreou
 
Контент-менеджмент: руководство к действию.
Контент-менеджмент: руководство к действию.Контент-менеджмент: руководство к действию.
Контент-менеджмент: руководство к действию.
 
Solo Portfolio
Solo Portfolio Solo Portfolio
Solo Portfolio
 
Solo Business Model
Solo Business ModelSolo Business Model
Solo Business Model
 
Civic Action Startup Pitch for Startup Weekend Bangalore
Civic Action Startup Pitch for Startup Weekend BangaloreCivic Action Startup Pitch for Startup Weekend Bangalore
Civic Action Startup Pitch for Startup Weekend Bangalore
 
Presentation Example
Presentation ExamplePresentation Example
Presentation Example
 
Prout e a Economia Descentralizada - Colin Whitelaw
Prout e a Economia Descentralizada - Colin WhitelawProut e a Economia Descentralizada - Colin Whitelaw
Prout e a Economia Descentralizada - Colin Whitelaw
 
CSR & HR - Presentation Ettore Marchetti
CSR & HR  - Presentation Ettore MarchettiCSR & HR  - Presentation Ettore Marchetti
CSR & HR - Presentation Ettore Marchetti
 
SoloTours
SoloToursSoloTours
SoloTours
 
Дечја презентација
Дечја презентацијаДечја презентација
Дечја презентација
 
Media Feedback 080
Media Feedback 080Media Feedback 080
Media Feedback 080
 
Task 6 Technologies.
Task 6 Technologies.Task 6 Technologies.
Task 6 Technologies.
 
SoloDelivery
SoloDeliverySoloDelivery
SoloDelivery
 

Similar to Desigualdades e Desastre Económico – Novas Evidências - Mark Friedman

Right questions sustainability 100813
Right questions sustainability 100813Right questions sustainability 100813
Right questions sustainability 100813
Ian Muchamore
 
Right questions sustainability 100813
Right questions sustainability 100813Right questions sustainability 100813
Right questions sustainability 100813
Ian Muchamore
 
TAX COMPETITION - FINAL
TAX COMPETITION - FINALTAX COMPETITION - FINAL
TAX COMPETITION - FINAL
Katrina Murphy
 
The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...
The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...
The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...
Nancy Skinner
 
How Tax Havens Plunder the Poor
How Tax Havens Plunder the PoorHow Tax Havens Plunder the Poor
How Tax Havens Plunder the Poor
Dr Lendy Spires
 
0000004730 global economy and emerging industries
0000004730 global economy and emerging industries0000004730 global economy and emerging industries
0000004730 global economy and emerging industries
Jai Chowdhary
 
Climate Change and the Real Estate Industry
Climate Change and the Real Estate IndustryClimate Change and the Real Estate Industry
Climate Change and the Real Estate Industry
Richard Faulk
 
Managing Risk in the Global Supply Chain
Managing Risk in the Global Supply ChainManaging Risk in the Global Supply Chain
Managing Risk in the Global Supply Chain
Bernard Mejia
 

Similar to Desigualdades e Desastre Económico – Novas Evidências - Mark Friedman (20)

Stability, growth and regulatory reform
Stability, growth and regulatory reformStability, growth and regulatory reform
Stability, growth and regulatory reform
 
Right questions sustainability 100813
Right questions sustainability 100813Right questions sustainability 100813
Right questions sustainability 100813
 
Right questions sustainability 100813
Right questions sustainability 100813Right questions sustainability 100813
Right questions sustainability 100813
 
Walgreens Essay. Online assignment writing service.
Walgreens Essay. Online assignment writing service.Walgreens Essay. Online assignment writing service.
Walgreens Essay. Online assignment writing service.
 
Affect of covid on economy.pptx
Affect of covid on economy.pptxAffect of covid on economy.pptx
Affect of covid on economy.pptx
 
Forces driving change in the global economy
Forces driving change in the global economyForces driving change in the global economy
Forces driving change in the global economy
 
TAX COMPETITION - FINAL
TAX COMPETITION - FINALTAX COMPETITION - FINAL
TAX COMPETITION - FINAL
 
The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...
The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...
The Adam Smith Plan to Save Markets and the Climate: The Climate is Too Big t...
 
How Tax Havens Plunder the Poor
How Tax Havens Plunder the PoorHow Tax Havens Plunder the Poor
How Tax Havens Plunder the Poor
 
0000004730 global economy and emerging industries
0000004730 global economy and emerging industries0000004730 global economy and emerging industries
0000004730 global economy and emerging industries
 
Addressing the Crisis in Employment and Consumer Demand - Ashford
Addressing the Crisis in Employment and Consumer Demand - AshfordAddressing the Crisis in Employment and Consumer Demand - Ashford
Addressing the Crisis in Employment and Consumer Demand - Ashford
 
Mid Market Turnaround In A Global Economic Downturn
Mid Market Turnaround In A Global Economic DownturnMid Market Turnaround In A Global Economic Downturn
Mid Market Turnaround In A Global Economic Downturn
 
rohit socio urban presentation.pptx
rohit socio urban presentation.pptxrohit socio urban presentation.pptx
rohit socio urban presentation.pptx
 
Climate Change and the Real Estate Industry
Climate Change and the Real Estate IndustryClimate Change and the Real Estate Industry
Climate Change and the Real Estate Industry
 
Towards the Circular Economy: Accelerating the scale-up across global supply ...
Towards the Circular Economy: Accelerating the scale-up across global supply ...Towards the Circular Economy: Accelerating the scale-up across global supply ...
Towards the Circular Economy: Accelerating the scale-up across global supply ...
 
Managing Risk in the Global Supply Chain
Managing Risk in the Global Supply ChainManaging Risk in the Global Supply Chain
Managing Risk in the Global Supply Chain
 
WEF_GRR16
WEF_GRR16WEF_GRR16
WEF_GRR16
 
The Global Risks Report 2016
The Global Risks Report 2016The Global Risks Report 2016
The Global Risks Report 2016
 
Topical Issues in Trade and Development
Topical Issues in Trade and DevelopmentTopical Issues in Trade and Development
Topical Issues in Trade and Development
 
Finance Economics revisited, a primer (abstract) - Maverlinn
Finance Economics revisited, a primer (abstract) - MaverlinnFinance Economics revisited, a primer (abstract) - Maverlinn
Finance Economics revisited, a primer (abstract) - Maverlinn
 

More from PROUTugal

Democracia Económica Transforma a América Latina … e a ti - Dada Maheshvarananda
Democracia Económica Transforma a América Latina … e a ti - Dada MaheshvaranandaDemocracia Económica Transforma a América Latina … e a ti - Dada Maheshvarananda
Democracia Económica Transforma a América Latina … e a ti - Dada Maheshvarananda
PROUTugal
 
Sociocracia - Gestão Dinâmica - Frands Wisbech Frydendal
Sociocracia - Gestão Dinâmica - Frands Wisbech FrydendalSociocracia - Gestão Dinâmica - Frands Wisbech Frydendal
Sociocracia - Gestão Dinâmica - Frands Wisbech Frydendal
PROUTugal
 
Desenvolvimento de Comunidade Rural na Roménia - Denise Deshaies
Desenvolvimento de Comunidade Rural na Roménia - Denise DeshaiesDesenvolvimento de Comunidade Rural na Roménia - Denise Deshaies
Desenvolvimento de Comunidade Rural na Roménia - Denise Deshaies
PROUTugal
 
Ajudada - Filipa Pimentel e Luis Bello Moraes
Ajudada - Filipa Pimentel e Luis Bello MoraesAjudada - Filipa Pimentel e Luis Bello Moraes
Ajudada - Filipa Pimentel e Luis Bello Moraes
PROUTugal
 
Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...
Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...
Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...
PROUTugal
 
A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...
A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...
A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...
PROUTugal
 
Programa CoopJovem - Lurdes Barata - CASES
Programa CoopJovem - Lurdes Barata - CASESPrograma CoopJovem - Lurdes Barata - CASES
Programa CoopJovem - Lurdes Barata - CASES
PROUTugal
 
Sistemas de Moeda Sociais - Bruno Ricardo Ferreira
Sistemas de Moeda Sociais - Bruno Ricardo FerreiraSistemas de Moeda Sociais - Bruno Ricardo Ferreira
Sistemas de Moeda Sociais - Bruno Ricardo Ferreira
PROUTugal
 
Acção Local numa Visão Global e o Papel dos Comunicadores - Pieter De Vos
Acção Local numa Visão Global e o Papel dos Comunicadores - Pieter De VosAcção Local numa Visão Global e o Papel dos Comunicadores - Pieter De Vos
Acção Local numa Visão Global e o Papel dos Comunicadores - Pieter De Vos
PROUTugal
 

More from PROUTugal (9)

Democracia Económica Transforma a América Latina … e a ti - Dada Maheshvarananda
Democracia Económica Transforma a América Latina … e a ti - Dada MaheshvaranandaDemocracia Económica Transforma a América Latina … e a ti - Dada Maheshvarananda
Democracia Económica Transforma a América Latina … e a ti - Dada Maheshvarananda
 
Sociocracia - Gestão Dinâmica - Frands Wisbech Frydendal
Sociocracia - Gestão Dinâmica - Frands Wisbech FrydendalSociocracia - Gestão Dinâmica - Frands Wisbech Frydendal
Sociocracia - Gestão Dinâmica - Frands Wisbech Frydendal
 
Desenvolvimento de Comunidade Rural na Roménia - Denise Deshaies
Desenvolvimento de Comunidade Rural na Roménia - Denise DeshaiesDesenvolvimento de Comunidade Rural na Roménia - Denise Deshaies
Desenvolvimento de Comunidade Rural na Roménia - Denise Deshaies
 
Ajudada - Filipa Pimentel e Luis Bello Moraes
Ajudada - Filipa Pimentel e Luis Bello MoraesAjudada - Filipa Pimentel e Luis Bello Moraes
Ajudada - Filipa Pimentel e Luis Bello Moraes
 
Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...
Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...
Participação, Inclusão e Desenvolvimento Local: A Institucionalização das Emp...
 
A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...
A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...
A Importância do Desenvolvimento Local para a a Sustentabilidade do Territóri...
 
Programa CoopJovem - Lurdes Barata - CASES
Programa CoopJovem - Lurdes Barata - CASESPrograma CoopJovem - Lurdes Barata - CASES
Programa CoopJovem - Lurdes Barata - CASES
 
Sistemas de Moeda Sociais - Bruno Ricardo Ferreira
Sistemas de Moeda Sociais - Bruno Ricardo FerreiraSistemas de Moeda Sociais - Bruno Ricardo Ferreira
Sistemas de Moeda Sociais - Bruno Ricardo Ferreira
 
Acção Local numa Visão Global e o Papel dos Comunicadores - Pieter De Vos
Acção Local numa Visão Global e o Papel dos Comunicadores - Pieter De VosAcção Local numa Visão Global e o Papel dos Comunicadores - Pieter De Vos
Acção Local numa Visão Global e o Papel dos Comunicadores - Pieter De Vos
 

Recently uploaded

wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
allysaamping
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
joshuaclack73
 

Recently uploaded (20)

How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.
 
Abhay Bhutada’s Plan to Boost Financial Growth in 2024
Abhay Bhutada’s Plan to Boost Financial Growth in 2024Abhay Bhutada’s Plan to Boost Financial Growth in 2024
Abhay Bhutada’s Plan to Boost Financial Growth in 2024
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?
 
how can i make money selling pi coins in 2024
how can i make money selling pi coins in 2024how can i make money selling pi coins in 2024
how can i make money selling pi coins in 2024
 
International economics – 2 classical theories of IT
International economics – 2 classical theories of ITInternational economics – 2 classical theories of IT
International economics – 2 classical theories of IT
 
How can I sell my Pi coins in Vietnam easily?
How can I sell my Pi coins in Vietnam easily?How can I sell my Pi coins in Vietnam easily?
How can I sell my Pi coins in Vietnam easily?
 
how do I get a legit pi buyer in the internet (2024)
how do I get a legit pi buyer in the internet (2024)how do I get a legit pi buyer in the internet (2024)
how do I get a legit pi buyer in the internet (2024)
 
2. Natural of the history odf dieseases-1.ppt
2. Natural of the  history odf dieseases-1.ppt2. Natural of the  history odf dieseases-1.ppt
2. Natural of the history odf dieseases-1.ppt
 
What is an ecosystem in crypto .pdf
What  is  an  ecosystem  in  crypto .pdfWhat  is  an  ecosystem  in  crypto .pdf
What is an ecosystem in crypto .pdf
 
how do i sell pi coins in Pakistan at the best rate.
how do i sell pi coins in Pakistan at the best rate.how do i sell pi coins in Pakistan at the best rate.
how do i sell pi coins in Pakistan at the best rate.
 
wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
 
how to exchange pi coins for USD in 2024.
how to exchange pi coins for USD in 2024.how to exchange pi coins for USD in 2024.
how to exchange pi coins for USD in 2024.
 
Bond Bazaar Powerpoint Presentation in Details
Bond Bazaar Powerpoint Presentation in DetailsBond Bazaar Powerpoint Presentation in Details
Bond Bazaar Powerpoint Presentation in Details
 
Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]
 
New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
 
how can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best pricehow can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best price
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice Discounting
 
Human Capital: Education and Health in Economic Development
Human Capital:  Education and Health      in Economic DevelopmentHuman Capital:  Education and Health      in Economic Development
Human Capital: Education and Health in Economic Development
 
how can I sell my pi coins in China 2024.
how can I sell my pi coins in China 2024.how can I sell my pi coins in China 2024.
how can I sell my pi coins in China 2024.
 

Desigualdades e Desastre Económico – Novas Evidências - Mark Friedman

  • 1. Causes, Costs, and Alternatives
  • 2. Economists consider the link between rising inequality and economic instability
  • 3. Two primary causes of depressions 1. Concentration of Wealth Exploitation 2. Blockages in the circulation of money   “Rolling” of money Spreads crisis
  • 4.  Political capture • Wealthy lobby for  Tax relief  Pro-globalization, anti-labor policies  Deregulation of financial industry  Stagnant or declining average wages • Borrowing to maintain consumption  Greater risk preference for rich
  • 5. Dependent Variable: PCTGDPFALL Method: Least Squares Date: 08/04/13 Time: 23:55 Sample: 1 139 Included observations: 139 Variable Coefficient Std. Error t-Statistic Prob. C TOPSHARE CURRENCYCRISIS DEBTCRISIS STOCKMKTCRASH BANKCRISIS INFLCRISIS LIFEEXPECT2000 YRSSCHOOL2000 -0.155758 -0.006128 0.004792 0.018260 0.011438 -0.007440 -0.053885 0.002331 -0.002049 0.088834 0.001435 0.014668 0.031538 0.013044 0.014561 0.018865 0.001339 0.003330 -1.753358 -4.269316 0.326711 0.578981 0.876893 -0.510936 -2.856326 1.741151 -0.615096 0.0819 0.0000 0.7444 0.5636 0.3822 0.6103 0.0050 0.0840 0.5396 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood Durbin-Watson stat 0.244224 0.197714 0.070052 0.637949 176.9535 1.786557 Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) -0.067373 0.078209 -2.416597 -2.226595 5.251069 0.000011
  • 6.
  • 7.
  • 8.  Poor neighborhoods targeted for predatory mortgage lending • Fraudulent loans (Ninja loans) • Excessive fees • Frequent refinacing • Fraudulent foreclosures  Encouraged by biggest banks and gov’t  No criminal convictions yet
  • 9.
  • 12.  Encourages risk • Perverse incentives  Distorts consumption towards luxury goods  Predatory towards the poor  Robs resources from the rest of the economy • Talent goes to financial sector
  • 13.
  • 14.
  • 15.  920 suicides  648 Homicides  20,240 fatal heart attacks or strokes  494 deaths from liver cirrhosis  4227 admissions to mental hospitals  3340 admissions to state prisons *Brenner, 1976
  • 17. Source: Reifschneider, Wascher, and Wilcox, Figure 1.1. From Federal Reserve
  • 18.  Co-op-based economy inherently stable • Locally-based, resistant to international contagion. • Co-op workers reduce incomes rather than lay-off in downturns • Co-ops limit income inequality  Investment is community-determined  Automation brings leisure, not unemployment  Government policy of 100% employment
  • 19.  Unemployment Spain: • 26%  Basque • 15% Region:

Editor's Notes

  1. Notice how the share of the nation’s income going to the top 10% increases sharply just before the stock market crash preceding the Great Depression and in 2007, just before the financial crisis and the Great Recession.
  2. U.S. housing policy: throw poor to loan sharks. Irony of rich rigging economy in their favor.
  3. 2003-2006 increase in MIT grads going into finance 13% to 25%. Harvard MBAs at 34%, down from 40% before recession. Concern from Nobel prize winning economists, Robert Solow and Robert Schiller
  4. Explain, due to lost investment, long term unemployed lose skills, many drop out of the labor force, are no longer productive
  5. Investment: no bubbles Less spending out of insecurity, keeping up with Joneses