The growth of finance is not endlessly sustainable, because it creates a gradually growing cost problem for those who pay the cost that is income to finance. This growing cost problem at some point begins to reduce economic growth, which creates a second problem: declining income for those who pay the cost that is income to finance.
On the one hand the increasing cost of finance, and on the other declining income growth in the non-financial sector: Together they work like a vise, squeezing the sector that is the source of income to finance.
The irony is that finance itself is the source of the cost problem ...
Wednesday, February 5, 2020
Snippets: Finance is unique
From mine of 3 January:
Subscribe to:
Post Comments (Atom)
-
I'm not a fan of "diagrams" in economics, but sometimes... This is a screen capture of slide 36 from a SlideShare presentatio... -
JW Mason : "... in retrospect it is clear that we should have been talking about big new public spending programs to boost demand.... -
Bosch season five air date: 18 April. Ten episodes. Four days later, six of the transcripts were already available. A few days later, the ... -
First, this summary of an observation made in 1850, from the Liberty Fund : Frédéric Bastiat, while pondering the nature of war, concluded ... -
Mark Thoma links to the Kansas City Fed's Nominal Wage Rigidities and the Future Path of Wage Growth by José Mustre-del-Río and Emily ...
No comments:
Post a Comment