Another Capital Day

Don’t want to indulge in any–God forbid!–class warfare, but this passage from a post by economist Nancy Folbre at the New York Times‘ Economix blog is worth repeating and pondering:

Those at the top of the income distribution have captured the gains of so-called economic recovery. In an article published in the latest Journal of Economic Perspectives, Josh Bivens and Lawrence Mishel assert persuasively that this shift reflects the successful “rent-seeking” or economic bargaining power of corporate executives and financial professionals.

The lack of any fiscal stimulus aimed at lowering unemployment has contributed to this trend. Ironically, the Federal Reserve’s policy of quantitative easing to stimulate the economy and lower unemployment – which some Republicans tried unsuccessfully to outlaw — has probably also benefited those at the top more than those at the bottom. Lower interest rates have driven up the price of stocks, but left those dependent on less risky sources of investment income (such as savings accounts and bonds) stranded with low returns.

Today is officially Labor Day. But all the days in the year are now, unofficially, Capital Days.

So why should today be any different?

Oops, there I go again.

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Ed Kilgore

Ed Kilgore, a Monthly contributing editor, is a columnist for the Daily Intelligencer, New York magazine’s politics blog, and the managing editor for the Democratic Strategist.