The relationship between the financial economy and the real economy needs serious attention.
Friday, September 19, 2008 at 11:47AM
Skeptic in Economics, Middle Class

Not only has capital been sucked out of the real economy by the increasing craziness in the financial economy over 3 decades or so, but talent has also been diverted away from the real economy, as Matt Yglesias points out here. Well over 80% of Americans owe their livings to the real economy, and this diversion of important resources into the financial economy surely has contributed to the middle class income crisis. I don't have any answers, but we need to think about this.

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