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2.58 MB
Extraction Summary
10
People
3
Organizations
1
Locations
3
Events
5
Relationships
3
Quotes
Document Information
Type:
Economic research report page
File Size:
2.58 MB
Summary
This document explores how income inequality negatively impacts U.S. economic growth by reducing aggregate demand, noting that lower-income households have a higher marginal propensity to consume but face borrowing constraints. It cites research indicating that overleveraging by low-income households contributed to the 2008 financial crisis and that the subsequent recovery has been slow due to significant wealth loss among the middle class compared to the top 10% of earners.
People (10)
Organizations (3)
| Name | Type | Context |
|---|---|---|
| U.S. Berkeley | ||
| IMF | ||
| Standard & Poor's |
Timeline (3 events)
financial crisis in 2008
Great Depression
Great Recession
Locations (1)
| Location | Context |
|---|---|
Relationships (5)
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Key Quotes (3)
"Professor of Public Policy at U.S. Berkeley Robert Reich argues that increased inequality has reduced overall aggregate demand."Source
HOUSE_OVERSIGHT_025777.jpg
Quote #1
"Mian and Sufi also found that, as home values increased between 2002 and 2006, low-income households very aggressively borrowed and spent... while high-income households were less responsive."Source
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Quote #2
"The middle class lost over 40% of their wealth in just three years, while the top 10% of income earners actually accumulated an additional 2% to their wealth"Source
HOUSE_OVERSIGHT_025777.jpg
Quote #3
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