The result of a plutonomy is that the economy — particularly the financial sector — gets run largely by and for the top tiers of extremely wealthy people. One of the biggest reasons for the 2008 economic collapse was that increasingly exotic investments were created to attract investors. The top 10 percent has so much money compared to the rest of us that they ran out of opportunities for high returns in the “real” economy, and turned to real estate speculation and derivatives.

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