The Collapse In Economic Mobility’s Main Cause: Inequality, Not Low Growth

“In the “more equal” counterfactual, absolute mobility rates would be 80 percent, 30 percentage points higher than they are today. In that world, three-quarter of the observed decline in economic mobility would be erased. To attain absolute mobility rates above 80 percent with current levels of inequality, annual GDP growth would have to be running at more than 6 percent, a level that the US economy has never sustained for multiple years in the post-World War II era.” — Exactly what we would expect if, indeed (as we have been arguing for 10+ years) the inherently unequal monetary and banking system is the main driver of economic disadvantage…