Relationship between Inequality and Financial Crisis

According to him, the increase in inequality over the past 30 years has resulted in an increase in political pressure for redistribution, which eventually emerged as financed housing finance with subsidy (Rajan, p. 3). It is said that Rajan's hypothesis designed by Professor Rajan himself existed before Rajan, but that further explains the actual trigger of the 2008 financial crisis from the United States. In addition to raising intense debate about US inequality, it reveals other mistakes that led to the financial crisis.

The argument that income inequality has led to the financial crisis and a "great recession" is contrary to that evidence. "In a recent economic survey that connects the relationship between the expansion of inequality and the financial panic, we conclude that" there is little evidence that the credit boom and the financial crisis are related to an increase in inequality. " Low interest rates - the main reason for the recent financial market boom and collapse. The decrease in income disparity due to the recent economic downturn indicates the danger of relying on income equality as a public health indicator. Because wealthy families are strongly influenced by the economic downturn, their income is depressed earlier than the income of poor families. Income disparity has decreased, but overall prosperity has also decreased. If you comply with the initiative of income leveling, you should support.

Since the financial crisis income inequality has become an obsession in many news and publicity fields. People have paid attention during the period when accidents have caused an initial reversal of inequality between "wealthy Americans" of "99%" for many years, while inequality is increasing inequality in much less That's why. . Very prominent scholars, policies, and media elites are convinced that inequality is a matter of our time, many of why this problem does not cause strong protests from the middle class and the poor It is difficult to understand.

It is difficult to determine the causal relationship between inequality and institutional trust (in practice, in particular there may be no relationship between inequality and citizen participation), but a general and observable correlation There seems to be. This is especially true in countries that are most affected by the Great Depression since 2008. Mr. Martin Wolf said, "The financial crisis and the subsequent economic shock ... in addition to tremendous expenses, it is written in the UK's Financial Times in June that" these emperors are naked I understood "the credibility of the elite.