Inequality keeps growing and growing

https://mishtalk.com/economics/who-benefits-from-money-printing

They print money trying to buoy the economy.

It causes inflation.

90% of the inflation goes into the financial markets (stocks and bonds).

The already-rich own the lion’s share of stocks and bonds. They get richer.

The amount of the inflation that goes into consumer prices means that real (inflation-adjusted) wages remain stagnant.

So inequality keeps growing and growing.

* * * *

It makes you wonder if the administrators of the Federal Reserve are dumb. Surely they don’t want to exacerbate inequality and surely they don’t want to see asset bubbles that will end in a huge bust. But I think their hands are tied . . . because there is so much debt in the economy. The debt can only be serviced if the interest rates stay low and if monetary policies remain stimulatory (money printing).

The Catch-22 is that low rates encourage more in the way of borrowing (debt creation).

Federal debt:
1929: $17B (16% of GDP)
1975: $533B (32% of GDP)
2003: $6,783 (59% of GDP)
2011: $14,790B (95% of GDP)
2020: $27,748B (129% of GDP)

US total debt 2012 (government, corporations, consumers): 760% of GDP
US total debt 2020 (government, corporations, consumers): 805% of GDP