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The idea that the Great Recession of 2008 may have been caused not just by careless banking but also social inequality is currently all the rage among macroeconomists…

There is ample evidence that, especially in the US, households reacted to higher inequality by working longer hours, lowering savings, and increasing debt in an attempt to maintain their relative consumption status. Up to a point this allowed them to pay for medical bills, the ever-increasing costs of children’s college education and a house; but eventually the bubble burst. The situation is not dissimilar in the UK.

Who knew? Give most people a cash machine with apparently unlimited money and they will Spend, Spend, Spend to keep up with the rich.