[ancap]

I am often left wondering why people seem so concerned about income inequality, and when asking those who are concerned sadly the response tends to be indignant. With that said I was quite interested that your linked article might explain why inequality should be a concern from an economic standpoint. Unfortunately, the "savings glut" argument is quite week.

To summarize, a "savings glut", they claim, is what happens when wealthy people do not spend their money, causing an increase in bank deposits, causing a drop in interest rates, causing the central bank to have less leverage in managing the economy. While in a sans-central bank economy interest rates may work that way, the world's economies are managed by central banks who, more or less, determine what the interest rates will be. That is to say, current record-low interest rates have very little to do with savings from the wealthy, and are mostly tied to the tens of trillions of dollars injected into the economy in recent years by the central banks.