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Legal Commentary

: TalkLeft

Krugman On Income Inequality And Economic Growth

By Big Tent Democrat

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pResponding specifically to a href="http://www.talkleft.com/story/2008/12/17/8920/0393"Kevin Drum/a and to those, a href="http://www.talkleft.com/story/2008/12/15/92733/646"like me/a that share the "widely held view" Kevin espoused about the need to addresss income inequality for sustained economic growth, a href="http://krugman.blogs.nytimes.com/2008/12/17/do-we-need-the-middle-class/"Krugman writes/a:/p blockquoteThis is a widely held view, and I#146;m as much in favor of a strong middle class as anyone. Nonetheless, I#146;d say that in terms of strict economics it#146;s wrong. There#146;s no obvious reason why consumer demand can#146;t be sustained by the spending of the upper class #151; $200 dinners and luxury hotels create jobs, the same way that fast food dinners and Motel 6s do./blockquote pKrugman cites NYC as an example. Far be it from me to disagree with a Nobel prize winning economist, but this seems antihistorical to me. Mature economies have depended upon a large middle class. NYC in particular has a large middle class outside of Mahattan (even larger if one consider the entire metropolitan region.) In any event, this gives me a research project on economic history and I will try and see if I can disprove Krugman's argument./p pSpeaking for me only/pdiv class="feedflare" a href="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?a=lYUETFjp"img src="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?d=41" border="0"/img/a a href="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?a=iJ0mQx1F"img src="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?d=43" border="0"/img/a a href="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?a=GamSsp53"img src="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?i=GamSsp53" border="0"/img/a a href="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?a=LXdVpiUW"img src="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?d=50" border="0"/img/a a href="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?a=lS2ukFHo"img src="http://feedproxy.google.com/~f/TalkleftThePoliticsOfCrime?d=52" border="0"/img/a /div

Full post as published by TalkLeft on December 17, 2008 (boomark / email).