Robert J. Shiller, author of Finance and the Good Society, reveals why the housing market bubble masked the inequality between the 1 percent and those that belong to the lower portion of income distribution in the U.S. Shiller recognizes the problems for homeowners caused by this large disparity, such as the increasing numbers of Americans facing foreclosure. In 2010 alone, 1 out of 45 U.S. citizens received foreclosure notices. By 2011, over 800,000 homes were repossessed. When faced with numbers like these, it becomes clear that immediate action and reform need to be instituted if we are to dig ourselves out of this loop of financial corruption. Shiller discusses the housing market as well as his books FINANCE AND THE GOOD SOCIETY and THE SUBPRIME SOLUTION on WNYC’s Brian Lehrer Show (WNYC 93.9 FM/AM 820), an awarding winning radio program.
Listen to the interview with Shiller here:
Brian Lehrer: “You have argued that rising inequality in the U.S. was a major cause of the housing crisis. That’s
fascinating. What kinds of inequality?”
Rob Shiller (in response to Lehrer): “Well, we have two kinds of inequality. One of them that attracts the most attention lately is the 1%. The top 1% of our income has been growing rapidly. This is what motivates occupy Wallstreet. They said we are the 99%.
But there’s another type of inequality that I think is more serious: The inequality that affects people
in the bottom half of the income distribution. Their incomes are stagnating and in many cases falling. I think that’s a more serious problem.”