In Part 1 of 2, Oscar discussed the effect of the tax concession on the supply of housing. In Part 2, he examines its effects on house prices and income inequality.
Income inequality in a low-interest rate world
A topical discussion in economics is a trend of rising Income inequality, with some calling it the most disturbing social and economic issue of our time.[1] One way to measure this inequality is to compare the income earned by the top 1% as a share of national income. Plotted in the graph bellow we can …