You see that the savings rate of the bottom 90%(!) of households, after even going negative in the decade before the financial crisis went negative, and is still essentially zero. Since US households save on average is a little above 5% (see figure below). . This means that basically all the savings come from the top 10% of households, which means that they save far in excess of 5% of their income. This basically means that the Fed policies is hurting the rich and favoring the bottom 90% of households, who are also likely to be more in debt so the Fed’s efforts to get inflation up would also benefit them.
This is like turkeys voting for Christmas. Can we really expect the elite like Trump or Romney, who pay disproportionally less taxes than the average guy to change the tax system […]
Corporate profits are way up, and corporate taxes are way down. In 1952, corporate profits were 5.5 percent of the economy, and corporate taxes were 5.9 percent. Today, corporate profits are […]
We don’t think this is likely: Previous experience hasn’t shown it The Reagan revolution is overhyped, growth didn’t accelerate whilst inequality rose Today’s conditions are even less conducive, corporate tax […]
Bruce Bartlett, the guy who actually designed the Reagan tax cuts, cuts through the nonsense and neatly sums up why they aren’t likely to produce any economic boom. See: Why are […]