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Income Inequality
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Income Inequality: Why It Matters and Why Most Economists Didn't Notice

Matthew P Drennan

Abstract

This book tells two stories. First, it shows that rising income inequality played a major role in causing the financial crisis and Great Recession of 2008-2009. While others have argued that rising, indeed surging, household debt in the 1990s and 2000s contributed to the financial collapse, none have related rising household debt to the dramatic rise in income inequality. The rise in household debt was not the result of a rash of luxury, but instead was the effort to maintain consumption despite stagnant incomes. Part of that effort is reflected in the unprecedented drop in the rate of saving ... More

Keywords: Income inequality, Household debt, Consumption theory, Great Recession, Great Depression

Bibliographic Information

Print publication date: 2015 Print ISBN-13: 9780300209587
Published to Yale Scholarship Online: May 2016 DOI:10.12987/yale/9780300209587.001.0001

Authors

Affiliations are at time of print publication.

Matthew P Drennan, author
UCLA

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