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View Diary: Joseph Stiglitz' Latest Must-Read: "Inequality Is Holding Back The Recovery" (113 comments)

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  •  Simple math (7+ / 0-)

    The 1% have over 1/3 of the total wealth in the country, and their iron rule is that it must always grow (preferably a 10% ROA).  Only one place left where that money can come from.  

    •  Funny, Stiglitz notes that (7+ / 0-)
      The growth in the decade before the crisis was unsustainable — it was reliant on the bottom 80 percent consuming about 110 percent of their income.
      It is one of the most important points he makes, but he really fails to emphasize the ramifications. Michael Hudson points to this reality as being one of the fundamental flaws in our system - that it institutionalizes usury capitalism and drains the productive economy of its assets. Hudson writes that the jubilee and other "wiping the slate" was essential in the ancient world (Sumeria, etc) because debt compounded and consumed all of the underlying assets. When land was confiscated and children were put into bondage for the debts owed, a nation easily fell prey to an invader promising a clean slate. This is something the needs much more attention in the public narrative. Debt is the tool by which inequality in maintained.

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