How to Unblock the Economy: Conclusions

            To sum up, if the grossly unequal distribution of income in the U.S. is not addressed through a set of measures such as those discussed above, the economy will be condemned to continue its recent pattern of financial instability and sluggish performance. While the measures proposed here are far-reaching, they are essentially conservative in the sense that they are designed to modify the current economic system in order to make it work better, not to replace it with a fundamentally new system. 

            Meanwhile, this analysis provides a framework for reviewing alternative policy proposals, a kind of litmus test. For example, if we look at some of the budget proposals being put forward in Congress and the states in 2011, we can see that they go in the wrong direction. In particular, they are having the effect of reducing government spending at all levels and further inhibiting the already-weak economic recovery.           

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