6 ms·
Federal Reserve policies to ease interest rates and purchasing securities (via QE) have the effect of inflating asset prices. Wealthy people are often paid wit
by lmg643 11y ago
Federal Reserve policies to ease interest rates and purchasing securities (via QE) have the effect of inflating asset prices.
Wealthy people are often paid with assets (executive stock/option grants), work in asset-managing businesses (hedge funds/PE), and/or hold more assets than the poor (business owners).
In my view, the Federal Reserve is mainly responsible for exploding income, not that technology doesn't play some role as well - but, if it wasn't for exploding asset values, VCs would not be as desperate to invest in crazy money-losing ideas to automate XYZ (causing unemployment elsewhere) that they can sell to a bigger fish.
(Interested to know if the Fed is a disputed explanation.)
It seems strange to me that we have such a simple root cause but complicated ideas for how to stop it, other than curtailing the Federal Reserve.