Analysis: Negative

From Investing.com: 2025-07-01 01:39:00

Over the past 50 years, the economy has shifted dramatically, with wages gaining ground from 1945 to 1975, but losing ground since then. Wages’ share of the economy has declined, leading to a wealth transfer of $150 trillion from wages to capital owners. Financialization and globalization have played a significant role in hollowing out the economy, leading to a dependency on debt for consumption. This reliance on the “wealth effect” has exacerbated wealth inequality, with the top 10% of households accounting for nearly half of all consumer spending. As a result, younger generations are burdened with debt and face economic challenges, while older generations benefit from asset ownership and government spending. The consequences of these policy decisions will impact society for decades to come, with potential outcomes ranging from wealth inequality to a collapse of the economy.



Read more at Investing.com: The No-Win Bubble ’Wealth Effect’: Either Way We Lose