Brad DeLong — Understanding the Wall Street View of the World–and Why It Doesn’t Change

In whose interest?

Now labor no longer has a voice. But where have all the debtors gone? And why are the equity holders so confident that a low-pressure economy gains them more in terms of reduced wages than they lose through a failure to reap economies of scale and high capacity utilization? It is a great puzzle.

I think I understand why people are clinging to beliefs that justify policies that they think are in their interest given that labor and debtors are out of the picture, and given that equity holders have decided that they are more interested in waging economic class war than in full capacity utilization. But why have equity holders decided that?

WCEG — The Equitablog
Understanding the Wall Street View of the World–and Why It Doesn’t Change: Monday Focus
Brad DeLong | Professor of Economics, UC Berkeley