Income inequality : why it matters and why most economists didn't notice / Matthew P. Drennan.

9780300216349 (ebook) :

New Haven : Yale University Press, 2016.

1 online resource : illustrations (black and white)

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Prevailing economic theory attributes the 2008 crash and the Great Recession that followed to low interest rates, relaxed borrowing standards, and the housing price bubble. After careful analyses of statistical evidence, however, Matthew Drennan discovered that income inequality was the decisive factor behind the crisis. Pressured to keep up consumption in the face of flat or declining incomes, Americans leveraged their home equity to take on excessive debt. The collapse of the housing market left this debt unsupported, causing a domino effect throughout the economy. Drennan also found startling similarities in consumer behavior in the years leading to both the Great Depression and the Great Recession.

Print version :

Books / Online

English

August 10, 2016

Includes bibliographical references and index.