A review of the tentative conclusions reached at the end of the “Financial Markets” section of the blog, in light of this section’s analysis of the importance of distribution.
How we ensure that the benefits of increased productivity are distributed throughout society – not just distribution of income, but distribution of the capacity to produce.
How the rise in wealth inequality means that households now borrow from businesses, not the other way around.
This is an extra blog post – it doesn’t fit into the regular flow of 500-word Friday blog posts explaining how the economy works and…
If we want to produce enough for everyone, we need to invest in that productivity, and therefore we want our savings (i.e. our pensions) to be channelled to productive investment.