The economic story of 2007 isn’t Facebook being worth
$15bn, its not the subprime mess and the resulting credit crunch, its not the
fact that the US economy seems eerily similar to where we were in 1975.
What Fred isn’t mentioning is the massive amount of upper middle wealth that’s been created in the last decade. In each category (people with more than $1M net, $20M net, $100M net, etc. etc.) of wealth, the population has exploded at large rates domestically. Foreign wealth has been created mostly in part to our free market policies and willingness to trade. In my opinion the story of 2007 is the that today’s wealthy are much dumber than any previous generations in proportion to their peers and their wealth. Currently reading “Richistan” … the jury is still out.
