Crisis and Income Inequality Revisited ...

I discussed (well, started the discussion) on "Income Inequality" as one of the reasons, among many other, for the current global economic crisis back in January. I am looking at the post "The financial factor" by Paul Krugman today, and should revisit the issue ...

Well, Paul Krugman makes reservation, and rightly so ... "correlation does not imply causation yada yada" ... take a look at the chart (click to enlarge)!

Just thinking loudly. Scandinavian "socialism" and income (in)equality there ... and the wealth and "relative stability of system", any correlation? ... and a contrary picture ... Regulation and "wealth of Latvian entrepreneurs" (here I mean, e.g., the density of luxury cars) and the economy of the country looking into abyss ... Any correlation?

Food for thought ...