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It's because much of this money doesn't end up in the pockets of the average person to spend. One of the unintended consequences of QE is uneven distribution. B
by jorblumesea 6y ago
It's because much of this money doesn't end up in the pockets of the average person to spend. One of the unintended consequences of QE is uneven distribution. Bill Gates makes 100k more, what does he do? Probably buys more equities. Average person gets 20k, that money is used to buy essentials, service debt, buy things.
Real inflation has been tame over the past 15 years for precisely this reason.
- reedjosh 6y agoThinking about this statement. The inflation rate causes rich people to get richer since they have assets and the poor get pushed further and further from being able to own assets. > Real inflation has been tame over the past 15 years for precisely this reason. I don't like this use of `Real inflation.` Maybe nominal inflation as viewed by the poor. Real inflation should include the ability of poor/middle class to buy assets as well.