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https://scholar.harvard.edu/taehoonkim/research
Not news to me. Globalization makes the rich richer, and the poor poorer, in the US. Guess who is pro-globalization: our "moral" rich liberal elites.
I highlight the following points: 1) financial globalization raises wealth inequality in a financially-developed economy initially due to foreign capital pressing up domestic asset prices; 2) much of this increase is transitory and can be reversed as future expected returns on domestic assets fall; and 3) despite the low-interest-rate environment, newly accessed foreign capital provides incentives for affluent households to reallocate wealth toward risky assets while impoverished households increase their debt. Wealth concentration ensues only if this rebalancing effect is large enough to counteract diminished return on domestic assets. Quantitative analysis suggests that global financial integration alone can account for 34% to 55% of the observed increase in the current top one percent wealth share in the U.S., but indicates a possible reversal in the future.
Not news to me. Globalization makes the rich richer, and the poor poorer, in the US. Guess who is pro-globalization: our "moral" rich liberal elites.