A tidbit

NYT: The gap between the richest and poorest American communities has widened since the Great Recession ended, and distressed areas are faring worse just as the recovery is gaining traction across much of the country.

These findings, outlined in a study to be released on Thursday by theEconomic Innovation Group, a new nonprofit research and advocacy organization, may help explain why the country’s economic and political situation has become so polarized in recent years. The results, broken down into areas as small as individual ZIP codes, provide one of the most detailed looks at the nation’s growing inequality.

HT Marginal Revolution

An agglomeration effect, due to Swamp rule over the economy.  This effect was coincident with the Fed doing QE, and a number of studies have shown QE to cause regional disparities.  When the Fed is releasing hot potatoes, Nick Rowe calls them, then  regions with the reserves can ride the wave, stressed regions lose out.  The cure? Distribute power away from the Swamp.  Less hot potato and more accurate pricing.  Then we can all price the cost of bonehead government, as it happens.