The Saving Glut of the Rich

Mian, Atif; Straub, Ludwig; Sufi, Amir

doi:10.3386/w26941

Cited by 60 publications

(33 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Note that this history of household debt in America is compatible with the idea of a savings glut, arising either from global factors (Bernanke 2005) or from growing income concentration at the top (Mian, Straub, and Sufi 2019), which lowered interest rates, loosened borrowing constraints, and increased housing values. Our analysis does not speak to the initial trigger of this process.…”

Section: Introductionsupporting

confidence: 64%

“…Regarding house prices and credit conditions, several important papers have traced house price increases to regulatory changes since the 1980s (e.g., Ho mann and Stewen 2019, Favara andImbs 2015, Di Maggio andKermani 2017). Recent research has also emphasized the link between rising inequality and household borrowing (De Stefani 2018, Mian, Straub, andSufi 2019). In their influential work, Sufi (2009, 2011) argue that household borrowing in low-income regions of the United States grew particularly strongly before the 2008 crisis and was then followed by severe output and employment losses.…”

Section: Literaturementioning

confidence: 99%

“…Fligstein, Hastings, and Goldstein 2017). A recent contribution by Mian, Straub, and Sufi (2019) discusses how rising income concentration at the top brought about a "savings glut of the rich" that supplied the funds for increased borrowing by non-rich households.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Modigliani Meets Minsky: Inequality, Debt, and Financial Fragility in America, 1950-2016

et al. 2020

View full text Add to dashboard Cite

This paper studies the secular increase in U.S. household debt and its relation to growing income inequality and financial fragility. We exploit a new householdlevel dataset that covers the joint distributions of debt, income, and wealth in the United States over the past seven decades. The data show that increased borrowing by middle-class families with low income growth played a central role in rising indebtedness. Debt-to-income ratios have risen most dramatically for households between the 50th and 90th percentiles of the income distribution. While their income growth was low, middle-class families borrowed against the sizable housing wealth gains from rising home prices. Home equity borrowing accounts for about half of the increase in U.S. housing debt between the 1980s and 2007. The resulting debt increase made balance sheets more sensitive to income and house price fluctuations and turned the American middle class into the epicenter of growing financial fragility.

show abstract

Section: Introductionsupporting

confidence: 64%

Section: Literaturementioning

confidence: 99%

See 1 more Smart Citation

Modigliani Meets Minsky: Inequality, Debt, and Financial Fragility in America, 1950-2016

et al. 2020

View full text Add to dashboard Cite

show abstract

“…Sowohl die gestiegene Einkommensungleichheit als auch die im Durchschnitt höhere Sparquote reicher Haushalte sind gut belegt. Mian et al (2020) zeigen Evidenz, der zufolge der Anstieg der Ersparnisse in den USA durch die Einkommensungleichheit in der gleichen Größenordnung liegen wie die zuvor beschriebene internationalen Sparschwemme. So reichen laut Mian et al (2020) seit dem Jahr 2000 die jährlichen Ersparnisse der reichsten 1 % der Amerikaner aus, den Mittelbedarf der Nettoinvestitionen der US-amerikanischen Wirtschaft zu decken.…”

Section: Anstieg Des Kapitalangebotesunclassified

Ursachen und Konsequenzen von Niedrigzinsen

Grosse-Rueschkamp

Rocholl

2020

Schmalenbachs Z betriebswirtsch Forsch

View full text Add to dashboard Cite

ZusammenfassungDie anhaltende Niedrigzinsphase stellt Wirtschaft und Gesellschaft vor große Herausforderungen und wird daher in Wissenschaft und Öffentlichkeit intensiv diskutiert. Dieser Beitrag zeichnet die internationale wissenschaftliche Debatte nach und fasst die verschiedenen Argumente und empirischen Erkenntnisse zusammen. Nominal- und Realzinssätze sind seit mehr als drei Jahrzehnten global rückläufig und entziehen sich damit vermeintlich einfachen geldpolitischen Erklärungsansätzen. Vielmehr ergeben sich strukturelle Erklärungsansätze als wesentlicher Treiber dieser Entwicklung. Darüber hinaus zieht dieser Beitrag Schlüsse aus den empirischen Erkenntnissen und leitet daraus potentielle Konsequenzen sowie Handlungsempfehlungen für unterschiedliche ökonomische Akteure ab. Diskutiert werden Folgen insbesondere für die Übertragungsmechanismen der Geldpolitik, für Finanzintermediäre, für die Unternehmen der Realwirtschaft sowie für Politik und Haushalte.

show abstract

“…Adding accumulated wealth to annual compensation not only makes the contrast even more stark, but also stifles capital investment that would buoy up wages in a growing economy. To this point, Mian, Straub and Sufi (2020) argue that "[T]he savings glut of the rich…has not [emphasis added] been associated with an increase in investment, [but] instead has been linked to substantial dissaving and large accumulation of debt by the non-rich. "…”

Section: Inequality In Urban Americamentioning

confidence: 99%

Global Cities and Socioeconomic Inequality: A Pathways Inquiry

Boschken

2020

SSRN Journal

View full text Add to dashboard Cite

Inequality in metropolitan areas is part of a paradoxical triangle of competing motives over resources allocation. Chief among inequality/equity rivals is the penchant for urban economic development, but in recent decades, ecological sustainability has also become increasingly important in this triangle. To understand inequality in global cities in such a context, one must recognize the intensity of economic development motives for those particular metropolitan areas seeking to maintain worldwide centrality, connectivity and command over the forces of globalization. As a comparative analysis of 53 large U.S. metropolitan areas, this paper examines the apparatus of a global city in response to globalization, particularly since such metropolitan areas produce higher socioeconomic inequality than other places. Through a causal path analysis, it empirically uncovers essential components of the paradoxical triangle in the ongoing struggle of global cities to sustain their world-city status. In so doing, the evidence suggests heightened inequality is a function of (a) the global city's use of certain "cornerstone" resources to sustain global advantage, and (b) its resultant polarized employment structure and commensurate skewed social stratification.

show abstract

The Saving Glut of the Rich

Cited by 60 publications

References 11 publications

Modigliani Meets Minsky: Inequality, Debt, and Financial Fragility in America, 1950-2016

Modigliani Meets Minsky: Inequality, Debt, and Financial Fragility in America, 1950-2016

Ursachen und Konsequenzen von Niedrigzinsen

Global Cities and Socioeconomic Inequality: A Pathways Inquiry

Contact Info

Product

Resources

About