The Federal Reserve Bank of Richmond estimates that
60 percent of the liabilities of the financial system are subject to explicit or implicit protection from loss by the federal government. This protection may encourage risk taking, making financial crises and bailouts more likely.
In a Vox column, Bob Hall argues that in the US, “the standard of living stopped growing around 2000. Family purchasing power today is just the same as in that year.” Hall identifies drivers of a “US secular supply stagnation.” In particular, he sees
no sign of a reversal of the decline in labour’s share of total income …
no sign that a burst of productivity growth will make up for the complete stall in productivity growth around the crisis …
no sign suggesting a departure from the decline in labour-force participation.
Josh Zumbrun discusses trends in US inequality based on 14 charts in a Wall Street Journal blog post.
A Vox column about a CEPR/Bank of England conference on inequality and Piketty’s “Capital in the 21. Century.”