David Leonhardt today adds some data to the assertion that Depressions are driven by collapsing aggregate demand. Using data from Piketty, Saez, and Zueman one can clearly see that growth has been held down by stagnant moolah in the hands of the many.
You can't have growth, if most of the folks don't have the moolah to buy stuff. Once again.
Alas, once again, Leonhardt makes the common mistake of comparing groups by mean/average. So, we see the 'upper middle class' tracking with per capita GDP. Of course it does!! Per capita (mean/average) tracks with the upper 10% of the income distribution!!! Income/wealth in our kind of economy is heavily right skew. What else would you expect? Leonhardt makes no reference to the meaning of the confluence. Sad.
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