Income mobility is down when we are overburdened by government obligations

Daniel Carroll and Nick Hoffman of the Cleveland Fed:

Conclusion Wealth mobility depends on luck and household choices. It is a reflection of households’ opportunities as well as their responses to those opportunities. Panel data from the past 30 years show a decline in wealth mobility across several measures. It appears that families are less likely to change wealth quintiles over time, while those that do move are less likely to move very far. The reasons for these trends are not fully known, but increasing wealth inequality has contributed to the decline. Families that do make large movements through the wealth distribution appear to be more likely to own some form of a risky asset, as compared to families that do not make large movements.

What has the Swamp been doing for eight years since the crash?

Trying to figure out how to avoid the massive climb in debt dictated by political promises.  It is called Secular Stagnation, and it means a less active economy, a contracted economy, as we all focus on the impending bankruptcy of the senators.