Finance and inequality

And in the US, the financial crash of 1929-1933 was followed by a half century of tight financial regulation, which held down the incomes of those employed in the financial sector and the net returns reaped by rich investors. We stress that this correlation between high finance and inequality is not spurious. Individuals with skilled financial knowledge have been well rewarded during the two inequality booms, and heavily penalised during the one big levelling (or two, if the 1776-1789 years are included) [Link]

This is from the VoxEU summary of a new book by Professors Lindert (Univ. of California at Davis) and Williamson (Harvard University).

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