Tuesday, August 12, 2014

COTW: Income Inequality--Bad for Business

So even Wall Street is waking up to the fact that a consumer-driven economy is partly gauged by the amount of fuel (cash) in the hand of Joe O. Consumer. Standard & Poors recent report said at extreme levels of income disparity, the economy could "capsize" and that the US is approaching that threshold:



The company expected an economic expansion of 2.8% but that expansion is reduced to 2.5% by the "drag on long-run economic growth" caused by extreme income inequality. So tell those loose cigarette sellers to follow the example of Wall Street bankers: run out and buy stocks and bonds with their ill-gotten gains.