Romain Ranciere

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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.

Economic research report page
2025-11-19
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