How Crony Capitalism Crushed the Middle Class and Killed the Economy

Download or read book How Crony Capitalism Crushed the Middle Class and Killed the Economy written by David Gerson and published by . This book was released on 2012-07 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a way never revealed before, this book exposes the economics of why the bottom 80% of Americans only own 7% of the financial wealth and receive only 39% of the income. Key Points Revealed: America has an Income Distribution Problem which manifests symptoms of an Aggregate Demand Problem. We must now think of America as having two private sectors; the Wealthy Minority and the Non-Wealthy Majority (who have significantly impaired balance sheets). The Non-Wealthy Majority are no longer able to deficit spend enough to make up for the desire of the increasingly Wealthy Minority to save. The Wealthy Minority include Americans, Foreigners and Corporations. Crony Capitalism, Bigger Government and Wealth Disparity comprise a self-reinforcing feedback loop. The Federal Reserve has allowed the Federal Government to be fiscally irresponsible through supportive monetary policies; allowing government to grow - reducing our productivity, global competitiveness and standard of living. There are no silver bullets. We must maximize our productivity to increase our standard of living by removing government distortions and become a net exporter.