Far from the idea of “trickle-down economics”, a map illustrates how the waterworks of the financial system are parching certain sections of the real economy and producing vast inequality.
Financial crises are inevitably followed by legislation to restructure the banking system, and the ongoing problems with bank stability are likely to be no exception.
Crises fueled by bank runs, starting with the Great Depression, have had something in common: Unexpected changes spur bank failures, followed by general panic and then large-scale economic distress.
Usually when jobs and wages are rising, it’s a good thing, but right now they may signal higher odds of a nasty recession – and Americans aren’t ready for it.
The rising cost of groceries and gas is fueling the fastest increase in consumer prices in 40 years and widening the inflation gap between the rich and poor.
It isn’t just the effects of climate change that could destabilize the financial system, it’s also fossil fuel assets losing value. The good news is that central banks can fix it.
When the federal government doesn’t intervene during downturns, the states often cut school spending. In turn, teachers may earn less or lose their jobs. And three in four teachers are female.
With sales tax revenues plummeting because of the pandemic, many cities will face bankruptcy – and that could affect everything from retirees’ pensions to whether roads get fixed.
As Congress considers further financial help for victims of the coronavirus pandemic, the magnitude of the fiscal crisis that governors and their states will have to face is just starting to emerge.