Technology will further exacerbate income inequality, with money flowing to the owners of capital and away from labor, says professor Lawrence C. Marsh in this instructive and innovative work. Because the wealthy spend less of their income than others do, businesses will face worsening consumer demand, and less money will circulate in the economy. To tackle this new world of weak demand and deflationary pressures, Marsh proposes a new type of quantitative easing that would directly help Americans in times of recession. Better that, he posits, than to have cash chasing asset bubbles.
About the Author
Lawrence C. Marsh is a professor emeritus in economics at the University of Notre Dame.
Comment on this summary
In our Journal
3 years ago
The 9 Megatrends That Will Boost Your Organization’s Legs
One way or another. We searched through many recent studies and forecasts, including those from the WEF, the US National Intelligence Council’s Global Trends Report, Brookings Institution, Future Today Institute and MIT Sloan Management Review. They agree on a number of major issues that should be on your radar if you want to have a […]
3 years ago
The Revival of Keynesianism?
Is the state coming back strong and big with COVID-19? A reading list. From The Wall Street Journal to Foreign Policy, everyone seems to agree: Bidenomics contains more of John Maynard Keynes than Milton Friedman. But what does that mean? We have summarized the background and underlying theories in a reading list. John Maynard Keynes […]