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My friend and fellow D/FW MMT'er, Dr. John Harvey, professor of economics at Texas Christian University and Forbes
columnist, had this to say:
"Whether you think it's fair or not, the situation this video so clearly depicts is a terrible drain on the level of economic activity.
In 2012, the top 20% of Americans spent 60% of their income, while the bottom 80% spent 90%. A healthy, capitalist economy needs a lot of wealth and income in the hands of those who will spend it and thereby create the demand that creates income, profits, and jobs.
Contrary to popular belief, we do not need the wealthy to save in order to create the loanable funds in banks that are then borrowed by businesses
. The financial system can make UNLIMITED loans without a single penny of savings in the vault at the outset (so long as the central bank is interest-rate targeting, which is what they do)
. Bottom line: market economies need a more even distribution of wealth and income than we have if they are to operate efficiently