“Gradual inflation has a numbing effect. It impoverishes the lower and middle class, but they don’t notice.” —Andrew Bosomworth, PIMCO Germany, as quoted in Der Spiegel
The rise of populism, evidenced by the success of Donald Trump, Bernie Sanders, and Alexandra Ocasio-Cortez, is rooted in the emergence of the greatest wealth and income inequality gap since the roaring ’20s.
According to the Economic Policy Institute, the top 1% take home 21% of all income in the United States, the largest share since 1928.
There are a variety of social, political, and economic factors driving this growing discrepancy, but one critical factor is ignored – The Federal Reserve.
The Fed has inserted itself into a key role in economic growth and along with that their contribution to the rising imbalances between economic classes.
The Wealth Gap Explodes
Over the last decade, as stock markets surged, household net worth reached historic levels. If one just looked at the data, it was clear…
