How Government Spending Enriches the Wealthy
https://www.wsj.com/opinion/how-government-spending-enriches-the-wealthy-4ad7375e
Covid relief programs and easy Fed policy inflated the value of assets such as stocks and real estate.
Vivek Ramaswamy notes:
American wealth is concentrated at the top. On this narrow point, the socialists are correct. The top 1% now holds roughly 30% of the nation’s net worth, and the bottom half holds about 2.5%. But the greatest driver of inequality over the past five years was exactly what the socialists now demand more of: large-scale government spending.
When Washington floods the economy with borrowed and freshly printed dollars, the money flows first into assets owned by the wealthiest Americans—stocks, bonds, real estate. Six relief laws pushed roughly $4.6 trillion out the door in the bipartisan response to the pandemic. The Federal Reserve cut interest rates to zero and more than doubled its balance sheet, from about $4 trillion to nearly $9 trillion.
https://www.wsj.com/opinion/how-government-spending-enriches-the-wealthy-4ad7375e
Covid relief programs and easy Fed policy inflated the value of assets such as stocks and real estate.
American wealth is concentrated at the top. On this narrow point, the socialists are correct. The top 1% now holds roughly 30% of the nation’s net worth, and the bottom half holds about 2.5%. But the greatest driver of inequality over the past five years was exactly what the socialists now demand more of: large-scale government spending.
When Washington floods the economy with borrowed and freshly printed dollars, the money flows first into assets owned by the wealthiest Americans—stocks, bonds, real estate. Six relief laws pushed roughly $4.6 trillion out the door in the bipartisan response to the pandemic. The Federal Reserve cut interest rates to zero and more than doubled its balance sheet, from about $4 trillion to nearly $9 trillion.