Friday, January 02, 2015

Bank (De)regulation, Income Disparity, & Bank Failure - A Cycle

Mikaela says:
Every time I hear about income disparity, I think about this article from NPR, which connects some key dots.  Right before big economic collapses and bank failures, the income gap yawns open to eat all but the 1%.  Then comes regulation on banks, income equality gets better, the economy improves, and the right decides it's time to deregulate again.  And then we start the cycle again.

Here's the graph from Harvard Business School Professor David Moss in 2010:

P.S. Check out these amazing graphs about income inequality in America over the last 40 years.