In the U.S, that gap has reached spectacular heights, Piketty told - TopicsExpress



          

In the U.S, that gap has reached spectacular heights, Piketty told CBS MoneyWatch earlier this year. And the rich might actually be wealthier than previously thought. A recent working paper from a European Central Bank senior economist estimates that Americas top 1 percent control between 35 percent to 37 percent of wealth, rather than the 30 percent than had previously been estimated. Aside from dampening economic growth, wealth inequality also leads to boom/bust cycles, S&P noted. Thats because the less affluent will borrow more to keep with the Joneses, a phenomenon seen before the housing crisis. Many Americans not only took out more debt to buy homes, but they also borrowed against their new homes equity, despite slow income growth. The key to getting America back on a path to more sustainable growth is boosting the purchasing power of the middle class and drawing people out of poverty, S&P wrote.
Posted on: Wed, 13 Aug 2014 22:22:39 +0000

Trending Topics



Recently Viewed Topics




© 2015