'The Rich and the Great Recession'

Mark Thoma extracts from 'The Rich and the Great Recession'.

Our results suggest that the standard narrative of the Great Recession may need to be adjusted. Housing played a role, but so did financial assets, which actually accounted for the bulk of the loss in wealth. The middle class played a role, but so did the rich. In fact, the rich now account for such a large share of the economy, and their wealth has become so large and volatile, that wealth effects on their consumption have started to have a significant impact on the macroeconomy. Indeed, the rich may have accounted for the bulk of the swings in aggregate consumption during the boom-bust.

Emphasis Mine

This is one of the consequences of the concentration of wealth. The other is the paucity of ideas within the ruling class.