Jared Bernstein and his Keynes disaster

Wealth Disparities before and after the Great Recessioni

The collapse of the labor, housing, and stock markets beginning in 2007 created unprecedented challenges for American families. This study examines disparities in wealth holdings leading up to the Great Recession and during the first years of the recovery. All socioeconomic groups experienced declines in wealth following the recession, with higher wealth families experiencing larger absolute declines. In percentage terms, however, the declines were greater for less-advantaged groups as measured by minority status, education, and pre-recession income and wealth, leading to a substantial rise in wealth inequality in just a few years. Despite large changes in wealth, longitudinal analyses demonstrate little change in mobility in the ranking of particular families in the wealth distribution. Between 2007 and 2011, one fourth of American families lost at least 75 percent of their wealth, and more than half of all families lost at least 25 percent of their wealth. Multivariate longitudinal analyses document that these large relative losses were disproportionally concentrated among lower income, less educated, and minority households.

From the NIH.

Pretty much the effect of Fed taxes, regressive taxes that shut the lower middle class out of banking.  This is the result of flat earthers like Delong and Bernsein.  They deny it, and they recite priors, but the effect is real and educated  economists understand the issue.

We understand this because we close the loop, follow the Lucas criteria.  The effect come from economies of scale, when government takes liquidity, poor people and small states lose economies of scale.  Hence the periodic recessions, the increasing rebellions, and eventual defaults. We will not be getting any help from flat earthers, suggest we fire them.

Making the same choice, getting the same result. The definition of insanity by Einstein.