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Is it possible that a higher concentration of wealth means inflation is reflected more strongly in asset markets than it is in consumer goods? Billionaires are
by strbean 1y ago
Is it possible that a higher concentration of wealth means inflation is reflected more strongly in asset markets than it is in consumer goods?
Billionaires aren't exactly buying more eggs when they have more cash, they're cash is competing for ownership of assets.
- Nifty3929 1y agoI agree with you, but I think you have cause/effect reversed. It's not that a high concentration of wealth results in high assets prices. It's that the money has nowhere else to go except into tech/AI, so those are the only assets that appreciate/inflate, and that leads to a concentration of wealth.
- pfannkuchen 1y agoTheir cash isn’t actually tied up in the asset though, per se. Whomever they buy the asset from gets the cash. A good chunk of it likely does eventually filter out into consumer goods, since people selling assets are sometimes selling to fund living expenses and not just to shift into another asset.