Income Inequality In America And The Financialization Of The Economy

This article in The Financial Times, tells us that $10 million trophy homes in Aspen are selling well to oligarchs. The market for homes below that price level has fared worse. The housing market in Aspen reflects the reality of income inequality in America. That raises questions about the sources of income inequality in America. To answer that question, the article focuses on a book being published by Jamie Galbraith. Since 23% of the growth in income has gone to the top 1%; he tries to determine how that has happened. His research shows that most of the gain has gone to those in the financial industry. The financialization of the US economy has been driving income growth to the top 1%. Swings in asset prices, and the use of leverage to amplify the returns from betting on the swings, is the major source of income growth to the top 1%.