Money For the Rest of Us
Money For the Rest of Us
J. David Stein
The Economy Is Not a Machine
25 minutes Posted Dec 2, 2020 at 9:00 am.
Download MP3
Show notes

How the drive for efficiency leads to greater wealth concentration and threatens capitalism. What can be done about it.

Topics covered include:

  • Why income growth has slowed for the middle class
  • Why the economy now follows a power-law distribution rather than a normal distribution, leading to skewed outcomes
  • Why the economy is a complex adaptive system rather than a machine
  • How the type of job you have and the company you work for affects your income
  • Why greater efficiency increases the risk of catastrophic collapses
  • What are ways to balance efficiency with resiliency

Show Notes

Changes in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances—The Board of Governors of the Federal Reserve

How America Banks: Household Use of Banking and Financial Services—Federal Deposit Insurance Corporation

When More Is Not Better: Overcoming America’s Obsession with Economic Efficiency by Roger L. Martin

How The Economic Machine Works by Ray Dalio—Video

For more information on this episode click here.

Also, go here to learn more about Money For the Rest of Us Plus membership.