If prejudice divides and weakens the working class, then capital owners can impose more inequality without fearing unified resistance. Frustrated workers turn on each other as scapegoats, blaming their economic hardship on diversity (in terms of race, religion, ethnicity, immigration status,...

Without a little inflation, bad investment drives out good. Moderate inflation enhances productivity by functioning like a scarecrow: the rise in nominal mortgage rates deters myopic home buyers, who naively watch the nominal interest rate (in its guise as the payment-to-income ratio) rather...