I think spiking income inequality causes recessions and that means we're in for a doozy. I think rapidly rising income inequality is a good predictor of a recession. The last time income inequality reached levels not seen since the 1920s was a mere 11 years ago. Baumann finds my theory -- that rising wealth inequality drives excessive borrowing and then recession -- hard to prove. This is [not] the only cause of a recession, but [a recession] can be willed into existence,” Mr. Baumann explained.

Source: Forbes February 26, 2019 13:41 UTC