Democratic Inequality
Why did the US household savings rate plummet before the Great Recession? It turns out that the economic inequality that most Americans face – between, say, the incomes of typical readers of this commentary and the rest – has had deep pernicious effects.
CHICAGO – Why did the household savings rate in the United States plummet before the Great Recession? Two of my colleagues at the University of Chicago, Marianne Bertrand and Adair Morse, offer an intriguing answer: growing income inequality.