ADAIR TURNER: Tech companies like Facebook may be contributing to the next credit crisis
|01/24/2018||Posted by BusinessMediaguide.Com under General World News||
- Lord Adair Turner talked to Business Insider about the effect of the tech sector on inequality, debt, and property.
- Tech companies create fewer jobs and concentrate more wealth than non-tech companies, he said.
- The prices of the products they create fall quickly, so they under-contribute to GDP growth.
- Tech companies also buy a lot of expensive property, driving up prices.
- Not-so-rich people need to take on debt to buy houses near that land — and banks are happy to extend that credit.
- Tech companies like Facebook, Google, and Apple thus drive credit booms due to land purchases, he argues.
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