Could the rising income gap herald another meltdown?

Submitted by Kathryn Busby on 4 August 2010

Aditya Chakrabortty writes in Comment Is Free that a big gap between rich and poor can be an indication of imminent economic meltdown.

He refers to the argument made by Raghuram Rajan, the former IMF chief economist who predicted the current economic crisis back in 2005.

Rajan's new book Fault Lines: how hidden fractures still threaten the world economy analyses the major economic problems which could cause another financial crisis, and first on the list is the massive income and wealth gap in the USA...   read more