The ideal remedial action from the government would have been to press forward with nationalization of banks. But unfortunately, the political pressures faced by President Obama and the stimulus announcements made in Europe had ended those hopes. President Obama was careful not to alienate the conservative sections of the House of Representatives by acting against…
Tag: Matthew Rothschild
Is unequal distribution of wealth & income a causal factor in the Great Depression and the 2008 Wall Street collapse?
In economies where income and wealth are unevenly distributed, the supply-demand equilibrium is threatened. In both the cases of the Great Depression and the present crisis, this factor had played a major role. According to Paul Gusmorino, “the mal-distribution of income between the rich and the middle class grew throughout the 1920’s. While the disposable…