What Is Income Inequality?

Chapter 1 of this book reliably demonstrates the link between income inequality and the 2008 financial crisis and the Great Depression. The main economic theory at present is that the 2008 crisis and the Great Depression were mainly caused by low interest rates, an easy lending environment and a bubble in real estate prices. However, after careful analysis using statistical methods, Matthew Drennan found that income inequality was the main cause of the crisis. At the same time, Drennan also found striking similarities in consumer behavior before the Great Depression and recession.