Local inequality may have gone up lately, largely due to loose monetary policy driving up prices for assets which most workers do not (and choose not to) own. S

Local inequality may have gone up lately, largely due to loose monetary policy driving up prices for assets which most workers do not (and choose not to) own. Such paper wealth can disappear rapidly during an asset repricing (market crash), as we can see in this graph[1]. Also, this is the result of Keynesianist monetary policy, a far cry away from the persuasions of Milton Friedman. However, global inequality - especially comparing the economic classes across countries - is way down. For instance, Chinese standard of living is far higher today than in the past, as is the cost of their labor - relative to an American worker. In due time, many a Chinese worker will find themselves uncompetitive due to increased costs - much like the American worker before them. What would put things back into balance is a massive global re-pricing of labor. This is politically unfavorable and those countries that maintain a reserve currency can put it off for a long time. [1] https://ourworldindata.org/uploads/2018/07/Top-Incomes.png https://ourworldindata.org/uploads/2018/07/Top-Incomes.png