The Economic Role of the Middle Class

Some links from Mike Konczal on the role of the middle class in the economy. I think the economic consequences (growth, financial crises) of inequality (and, therefore, the strength of the middle class) are especially interesting, although far from definitive at this point.

Certainly the limited data set that is post-war America would point to the idea that lower inequality and strong income growth for the middle class are best for avoiding asset bubbles, financial crises, and for overall economic growth. Is there a paper that looks at OECD countries in order to get an expanded data set?

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