Engine of Inequality: The Fed and the Future of Wealth in America by Karen Petrou
If you want to go any deeper into understanding why the income inequality has accelerated in the past decade, Engine of Inequality by Karen Petrou is a good way to begin. The main topic of the book is the link between financial policy and unequal economy and how to break it.
The role of the fed in how the money is distributed and to whom for stable growth and shared prosperity is outlined. after the last big recession, Fed incentives for recovery did not result in equitability, because of the restricitons on banks and everyone trying to show the bottom line instead of the topline growth. Profit maximation Vs growth boosting loans.
The low-interest rates which were supposed to result in low-cost loans to low-income househoalds failed. If banksa re in the game of making safe loans to good credit holders, who fills the banker role for the ones who banks wont entertain. Tech companies. With much data, how will there be fair lending is a good question to ponder. This would also break the lending-commerce barrier that tradiitonal banks have to follow creating a conflict of interest.
Petrou calls for ditching old ways of aggregate gauging of America's financial health through the middle class pulse. With large variations in income, every household should count.
In the end, the author presents financial policy for equitable future. Monetary-Policy tools to repair the Inequality Engine along with their impact are shown.
All this has been happening in front of our eyes, so its easy to see. The book has been written in such a way that you dont have to be an economist or in finance to understand what has been happening. Goes back to the unintended cosnequences of a system design.
The point of no return by Chris Bloomstran.
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