A GOOD REASON TO RE-DISTRIBUTE WEALTH

(h/t Kevin Drum)

Steve Waldman has an interesting conjecture about the end results of Reaganomics. People who aren't on top of the income heap tend to spend on goods while those at the top spend their money on assets. The latter leads to asset bubbles and a general misallocation of capital. And when those bubbles burst, the results can be disastrous.