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How Central Banking Increased Inequality

posted by FatPhil on Tuesday August 22 2017, @01:23PM   
from the Philosophers-Stone dept.

An Anonymous Coward writes:

"Although today high levels of inequality in the United States remain a pressing concern for a large swath of the population, monetary policy and credit expansion are rarely mentioned as a likely source of rising wealth and income inequality. [...]

The rise in income inequality over the past 30 years has to a significant extent been the product of monetary policies fueling a series of asset price bubbles. Whenever the market booms, the share of income going to those at the very top increases.[...]

[F]inancial institutions benefit disproportionately from money creation, since they can purchase more goods, services, and assets for still relatively low prices. This conclusion is backed by numerous empirical illustrations. For instance, the financial sector contributed massively to the growth of billionaire's wealth"

Source: https://mises.org/library/how-central-banking-increased-inequality

I'll leave my comments as comments, but note that The Mises Institute is proudly, one might say almost by definition, Austrian School. Both the Institute and the School have had their fair share of criticism. Which of course doesn't mean that individual author is wrong on this particular matter. -- Ed.(FP)

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Original Submission

• Central banks have some notoriety already Central banks have some notoriety already (Score: 5, Informative) by FatPhil on Tuesday August 22 2017, @03:52PM (4 children)

  by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Tuesday August 22 2017, @03:52PM (#557542) Homepage

  While the author of this obviously has an agenda, and he clearly has a few wilder bees in his bonnet, the core tenet of this essay is remarkably well shored up by supporting evidence, and quotations from highly influential decision-makers:
  http://whatreallyhappened.com/WRHARTICLES/allwarsarebankerswars.pdf
  There's a youtube version with the same name, if you prefer radio mode to toilet-reading mode.

  --
  Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves

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• Re:Central banks have some notoriety already Re:Central banks have some notoriety already (Score: -1, Troll) by Anonymous Coward on Tuesday August 22 2017, @04:44PM (2 children)

  by Anonymous Coward on Tuesday August 22 2017, @04:44PM (#557563)

  al always liberturds got things backwards. It's not a monetary issue in a closed loop system

  Parent

  • Re:Central banks have some notoriety already Re:Central banks have some notoriety already (Score: 0) by Anonymous Coward on Tuesday August 22 2017, @05:04PM (1 child)

    by Anonymous Coward on Tuesday August 22 2017, @05:04PM (#557575)

    Put the beer down, take a nap, and for the sake of your neighbors take a shower.

    Parent

    • Re:Central banks have some notoriety already (Score: 2) by FatPhil on Wednesday August 23 2017, @08:45AM

      by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Wednesday August 23 2017, @08:45AM (#557901) Homepage

      You think his neighbours will give him sake if he takes a shower?
      Wasn't the beer already too much for him, don't you care about his liver?

      --
      Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves

      Parent

• Re:Central banks have some notoriety already (Score: 1) by jelizondo on Wednesday August 23 2017, @02:59AM

  by jelizondo (653) on Wednesday August 23 2017, @02:59AM (#557823) Journal

  Thank you for the link and the very accurate description, the guy has some very wild bees in his bonnet but some of his points are well researched.

  Parent