From @megapatriot - The gov no longer had to worry about redeeming US debt held overseas in gold, it was able to spend without restraint. This created a large budget deficit quickly, which needed a solution. By monetizing the U.S. budget deficits, the Federal Reserve set off a period of high price inflation. The reason why there is growing income inequality since 1973 is a direct result of this monetary mayhem. All this new money needs an entry point into the economy. Someone has to get it first and spend it. When they spend this newly created money they do so at the existing set of prices, but in the course of making these expenditures prices will rise. Those who get the money first “win” in the sense that they get a free lunch – they have a greater income & can spend it before prices rise. Those who get the money last are the “losers” – they get access to this money eventually as it is spent (trickles down?) but by the time that occurs, prices have already risen. They're no better off. The 99% that have become relatively poorer over the past 40 years are those who get access to this new money last. (However these people are, thankfully, wealthier than they were 40 years ago) Who are the remaining 1%, then? Well, who gets the money first? Gov officials & contractors, to the extent that they get the proceeds of all the newly created money are the first & primary beneficiaries. Big banks and financial institutions also win as they are the enablers who help this newly created money enter the economy. Incidentally, 99 times out of 100, when we think of someone in the 1%, they probably either work for the higher echelons of the gov or are involved in the financial industry. Coincidence? I doubt it & you just have to go back in time to 1973 to understand why.
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