The Future of Wealth Redistribution

There's been this big saving glut driven by the fact that fewer and fewer people have more and more wealth. And they're not spending it because they don't need to spend all of it. That's pushing down the natural real rate of interest, which has possibly created what Sufi, man and Straub called a debt trap. The only policies that will get you out of this long-term secular stagnation are policies that address the widening inequality of income," he says.