This article from Mike Shedlock is absolutely packed with good information:
Here is the question of the day: What’s Behind Gross Inequalities In Income Distribution?
I ask the question after reading three incorrect answers in the article Inequality and the Second Gilded Age on the Real-World Economics Review Blog.
- What’s “Really” Behind Gross Inequalities In Income Distribution?
- Fractional Reserve Lending
- Inflation targeting by the Fed
- Moral hazard policies of the Fed that encourage winner-take-all speculation
- Government interference into free markets
- Public unions
The result of all five practices is the hollowing out of the middle class from the bottom up.
The solution is sound money, elimination of the Fed, the end of public unions, and minimal government interference in the free markets, not income rules, not misguided regulation of banks, and not more debates about how to measure something that cannot be measured.
