I like the "inflate our way out of it" part of DeLong's comment on Eichengreen article...
...perfect timing with my megalo plan to shift 12.5% of overall income share from top 3 percentile incomes back to the lower 90 percentile incomes (2001 numbers; may be worse now) by what amounts to using inflation (plus some serious top taxing) -- by doubling the minimum wage and instituting sector-wide labor agreements in this, one of the last economies in the first world (or even second or third world) yet to institute it. With 40% of overall income now spent by the top 10 percentile (up from 27.5% over previous decades) there is plenty of headroom to carve share back -- and it would be providential if the usually feared inflation were actually doing double duty. All things come to he who is megalomaniac.
Posted by: Denis Drew | September 28, 2008 at 07:44 PM
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