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"For the past several decades, politicians and economists have thought that high levels of inequality were good for the economy. But an economy that works only for the rich simply doesn't work. Because the middle class is so weak, America's economy now suffers from the kinds of problems that plague less-developed countries. Privileged elites more frequently secure special treatment from a government that wastes money and stifles competition. Children's opportunities are excessively determined by the wealth of their parents. Societal distrust has increased, making business transactions needlessly difficult. Consumer demand has weakened and become unstable, which has helped fuel the Great Recession and has made the recovery painfully slow. As Hollowed Out explains, to have strong and sustainable growth, the economy needs to work for everyone and grow from the middle out. This new middle-out theory aims to supplant trickle-down economics--the theory that was so wrong about inequality and our economy and didso much damage to our nation. This new thinking has the potential to shape economic policymaking for generations."--Provided by publisher.
Summary
For the past several decades, politicians and economists thought that high levels of inequality were good for the economy. This book explains that to have strong, sustainable growth, the economy needs to work for everyone and expand from the middle out.
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The dose is the difference between medicine and poison in economics as in healthcare. Hollowed Out makes the case that US inequality has gone beyond supply-siders medicine for growth to poisoning our economy via loss of trust, political polarization, debt-driven consumer demand, and self-perpetuating aristocracy of wealth. Every member of Congress should read this before voting on the next tax cut for the wealthy. - Richard Freeman, Professor of Economics, Harvard University
