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"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)
(Score: 1, Insightful) by Anonymous Coward on Tuesday August 22 2017, @08:54PM
How is this in any way a counterpoint? Ancient Rome did have central banking. Why do you think they stamped the face of the leaders on their coins? What do you think currency debasement is?
The points your raise about disparities in Ancient Roma and Russia are straw men. The article does not deny disparity. In FACT the article is that the disparity is amplified by central banks.
You say that inequality is as bad today as it was in 1890 under the gold standard. You conveniently forget about the growth that the gold standard did until the 1970's. We have regressed since then under fiat money and central banking.
You will be pleased to note that the Austrian School advocates the non-aggression principle whereby all are free to accumulate wealth, without having it stolen from them by the debasement of their assets, by the central bank printing money and giving it to the elites. You cannot compete with Tesala when the govenment is handing it subsidies, and goldman sacks is using fractional reserve banking to pull money out of thin air and give (sorry "loan") to Elon at 4%.
What? Capitalist that think the elites are a bunch of crooks? Yes.