Reason #2, velocity of money, is a nice technocratic way of saying too many people do not have enough to adequately support themselves. It reinforces the current mathematical absurdities of American economics orthodoxy. Cetaris Paribus is a hoax, and without it algorithm's make no sense.
Screw the technocrats. They bought into the self-serving BS from Friedman, and the Randians. They, in the service of the scorpions, paved the way for this monstrous "great divergence" of incomes and wealth with their bogus assumptions that economic forces are describable as mathematical certainties like the physics of large objects. Neither is as they assume. Economics is more akin to psychology than physics.
The solution is not to keep people at some tipping point at which they must spend almost every last dime just to survive or to maintain an almost acceptable lifestyle. The solution is to redefine social well-being for and by economists and to change the things we measure. A resilient economy is a great concept, but one that does not serve We the People is a brutal failure. We had a resilient economy in the '50s and '60s during the "great compression." But it was still a massive failure for millions of Americans. And the economy has gone only downhill since then.
There are some excellent points in this article, particularly the one about the buyback programs. This also extends to IPO's that are first offered to employees before they are offered to the actual public. Unfortunately those are only open to those at the top, and not all employees. The problem is that the ones to change this are the CEO and other six figure flunkies they surround themselves with, some of whom probably would not be able to work their way up in the company they been gifted a job in. You could regulate, but then those at the top are the ones who hire the lobbyists who help rule our administrative state. But aren't there politicians in Washington who talk about income inequality? Yes there are. They make more than three times as much as the average American, and get an automatic raise every year, no matter what the economy is doing. Not one of those public servants who complain about income inequality as ever addressed their own and proposed a salary cut for them and their colleagues, and re-structuring the raises so that it only happens when the average American salary goes up.
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