Crash Quote by Adair Turner, Baron Turner of Ecchinswell
“Rising inequality can create a more highly leveraged economy, and it can then make the economy vulnerable to a crash like 2008.”
About This Quote
Source Speech: Economic Forum, 2015
Rising inequality fuels leverage, making economies fragile and prone to severe crashes like 2008.
In simple terms: Inequality breeds risk.
Key Takeaway
Address inequality to stabilize economies.
Themes
economics
inequality
risk
stability
Mood
analytical
concerned
Type
policy
economic
When to use this quote
- policy making
- investment strategies
- financial regulation
Key Concepts
leverage
systemic risk
Questions to Reflect On
- What policies can reduce inequality without stifling growth?
- Can leverage be used responsibly?
A Different Perspective
Leverage can also drive growth if managed well.
