Funding economic development is not “aid” or “charity”, it’s in everyone’s interests to create a stable functioning economy. This is rapidly becoming apparent in the economic chaos caused by the oil-price crash and coronavirus.
Learning from the Marshall Plan as a process of using wealth from a trade surplus to strengthen the international economy.
A more even income distribution will strengthen the economy as whole, and thereby make everyone better off. We need “demand-side” economics.
Some tentative conclusions suggested by the blog so far.
A summary of this section of the blog.
Huge concentrations of wealth have distorted and destabilised financial markets, which now need to be reformed.
A summary of Pozsar’s conclusions on what we need to do about wealth inequality destabilising our economy.
How rising wealth inequality, leading to dramatic growth in institutional cash pools, has led to an unbalanced and unstable economy.
How the rise in wealth inequality means that households now borrow from businesses, not the other way around.
What is “repo” and what is its connection to the rise in wealth inequality and economic instability?