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> The reason is quite simple. As inequality gets more pronounced, a larger fraction of the population faces more stringent budget constraints, and the spectrum
by shasta 11y ago
> The reason is quite simple. As inequality gets more pronounced, a larger fraction of the population faces more stringent budget constraints, and the spectrum of possible economic interactions open to them narrows.
That's pretty simple, alright. Gee whiz. It's a good thing we have those abstruse theories from physics to tell us that people without money don't buy as much stuff.
I'm guessing this is a case of bad journalism -- anyone have a better layman's explanation?
- turbohz 11y agoInteraction could also mean selling.
- Terr_ 11y ago"Poor people can't afford to wait for better deals", perhaps?
- nekopa 11y agoI think the point of the article and the paper is to take that simple assumption and see exactly what level of inequality leads to effects on the larger economy. A number which we seem to be approaching.