Why The Fed's Approach Has Fallen Short
Thanks for reminding me of this. I’m not sure I read it before. If only more people were talking about this. I have only recently realized that the class divide is caused by not having investment income . Half the country cannot keep up with the cost of living because it rises based on demand (money velocity?) that is driven by the investor class and up. In other words, there’s no longer an affordable product in many consumer categories, like cars, houses, appliances, insurance for the working class unless you have at least two incomes and that’s no guarantee . As far as reducing demand, you can’t reduce demand from people who can only afford basic necessities. If they really want to reduce demand they’ll need a consumption tax on the rich.