PULS - How Deficit Spending Increases Inequality And Why That Matters Today

• I've written on multiple occasions about how deficit spending ultimately hampers GDP growth by crowding out private investment.
• It can also weigh on GDP growth when inflows of foreign dollars go toward funding the fiscal deficit instead of buying US goods or being invested in US assets.
• But there is a third and perhaps more insidious way that persistent deficit spending diminishes GDP: by increasing inequality.
• I show why this is and finish with a discussion of why the stock market is more disconnected from reality than it has ever been in US history.

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