“The extraordinary postcrash prosperity of the precrash superrich is altogether new in our history. Near-zero interest rates are a godsend to the wealthy, inflating their real estate, stock portfolios, bond portfolios, private equity holdings, and art collections. Middle-class and blue-collar Americans, meanwhile, haven’t made much progress, and many are worse off. Inequality has increased.”
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“Ultralow rates ease the pressure on enterprises to adopt productivity-enhancing innovations, restructure inefficient operations, and dispose of unproductive assets. That’s a major reason that productivity growth has been so poor. Ultralow rates also distort capital allocation.”
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