WASHINGTON (Reuters) - In 2007, when the world was on the brink of financial crisis, U.S. income inequality hit its highest mark since 1928, just before the Great Depression.
Coincidence? Maybe not.
Economists are only beginning to study the parallels between the 1920s and the most recent decade to try to understand why both periods ended in financial disaster. Their early findings suggest inequality may not directly cause crises, but it can be a contributing factor.
This raises a host of social, economic and political questions. Should public policy aim to reduce inequality, and if so by what means? Does concentrated wealth at the top of the income spectrum generate asset bubbles, or vice versa? Could raising taxes or interest rates ward off financial meltdowns?
Good question. Fdrdid some things to help. They did help...especially his social works program. You can read many people's eye witness accounts and see that some programs did work. These people would have starved otherwise. The unemployment rate was 25% in the 1930's...so something or someone had to step in and try to allievate the problems.Then Reagan came along and those tax cuts once again widen the gap between poor and rich. I do not think we have fully recovered since. This is an opinion piece but very interesting.
Answer by Mom2Just1 at 10:45 AM on Oct. 22, 2010
Answer by NotPanicking at 10:16 AM on Oct. 22, 2010
Answer by NotPanicking at 10:59 AM on Oct. 22, 2010
Answer by jewjewbee at 1:20 PM on Oct. 22, 2010
Answer by jewjewbee at 2:45 PM on Oct. 22, 2010
Answer by kerp1960 at 10:49 AM on Oct. 22, 2010
Answer by DSamuels at 11:00 AM on Oct. 22, 2010
I think it is a problem when only a few hold all the wealth, and the rest of us get the leftovers. Between 2002 and 2007 The top 1% had an income gain of over 10% when the rest of the 99% of us had a gain of a little over 1%. While we are struggling as a nation, wall-street and the super rich are thriving seeing record profits. There is only so much the super rich an spend to help the economy, they hoard their money and invest it, the middle class is what will make the economy sound again, when every one is spending.
Answer by mommom2000 at 11:18 AM on Oct. 22, 2010
Answer by NotPanicking at 11:42 AM on Oct. 22, 2010
Answer by itsmesteph11 at 11:44 AM on Oct. 22, 2010