Mark Thornton on PressTV:
In a sense wealth disparities do indicate recessions because they have the same cause as the boom-bust cycle in the economy, that is, when the central bank - the Federal Reserve of the United States - reduces interest rates to very low levels, they cause a boom in the economy which leads to an inevitable bust in the economy,” Thornton, senior fellow at the Ludwig von Mises Institute, told Press TV in a phone interview on Wednesday.
He added, ”Low interest rates; easy money, easy credit help people who own capital, so that their wealth increases, but those same real interest rates actually hurt the average worker in the economy and, as a result, the disparities in wealth increase and you get also the boom-bust cycle.
