Wealth Inequality in America Funded by Federal Reserve
When Federal Reserve Chair Janet Yellen worries about growing wealth inequality in America, I wonder if she’s truly unaware of how she creates this disparity. All of the Fed’s efforts at economic recovery have been directly applied toward helping the America’s most wealthy recover first.
How can you not create greater wealth inequality in America when the recovery program for the Great Recession is focused on giving trillions of dollars to billionaire bankers and then hoping it trickles down? Do people like Yellen fail to see their program is entirely geared to help the wealthy recover ahead of everyone else? Do they truly not see any other ways to aid recovery that would not create such huge wealth disparity?
Is Wealth Inequality in America a Scheme for Billionaire Banksters?
Ask yourself if the Fed’s Billions for Bankers program put a dime in the hands of common laborers. You think so? Unemployment remains as bad as it was at the beginning of the Great Recession if you use holistic measures. (The official unemployment statistics completely ignore the growing masses who are no longer getting unemployment benefits simply because their benefits expired. You fall off the Department of Labor’s radar screen forever as soon as they are no longer funding your benefits. Yet, you remain just as unemployed as you ever were.)
Wages have generally gone down during the Great Recession, in spite of the thousands of billions of dollars the Federal Reserve has injected into the economy. So, clearly none of that made it to you if you’re a laborer … not even many years into the program.
More people are underemployed, meaning they now work at lesser jobs than they had before the Great Recession or work only part time. So, if you’re unemployed, none of the Fed’s stimulus plan went to you either.
No one gets any interest on their savings, if they haven’t used their savings up, nor on most retirement funds. So, the great unwashed are not benefiting there either. (What interest anyone does get no longer even keeps up with inflation, so it isn’t really interest at all.)
Most laborers don’t have enough money to play the stock market, so they are mostly out of that game, too. Everywhere you turn, the middle class has been left out of the benefits. Yet, the Bankers of Babylon are all fatter and and happier than they were before they robbed the economy blind.
Wealth inequality in America is greater than at any time since 1929
The share of wealth held by the top 0.1 percent of families is now almost as high as in the late 1920s, when ‘The Great Gatsby’ defined an era that rested on the inherited fortunes of the robber barons of the Gilded Age. (The Washington Center for Equitable Growth)
The middle class’s share of total national wealth in the U.S. (i.e. of ALL owned assets) has gone down every year of the Great Recession since it began. That’s because the banking brothels are still running the world. They make certain that all federal funds used to restore the economy do so through their ledgers. And the Washington Johns are all too ready to pay their federal whores and keep them fat.
The reason that the Federal Reserve’s quantitative wheezing has not created any general inflation is that none of the Fed’s free money is going out to the general populace. It’s all getting invested in the stock and bond markets by rich banksters.
The truth is worse than all you’ve heard about the “one percent.” Fact is the primary beneficiaries of the Great Recession’s recovery program are much smaller in number than the much-mentioned one percent:
The return of wealth inequality is almost entirely due to the top 0.1 percent, a small group of about 160,000 with net assets over $20 million in 2012, getting richer. The overall share of total household wealth owned by that small group increased from 7 percent in 1979 to 22 percent in 2012, creating a level of disparity not seen since 1929. (From the article referenced above.)
The top one percent of American has gained the same percentage of all of America’s wealth as the bottom ninety percent have lost! So, it is easy to see which way all the money flowed.
Where is your voice in busting the Bankers of Babylon?
Yet, the masses sit there let it happen, continuing to believe the lie of Reaganomics that said, if you focus on creating wealth at the top, it will eventually trickle down. No it won’t!
Click this link for a chart that will show you how the sharp rise of wealth inequality in America began in the Reagan years. The next chart shows that the fall of middle-class wealth began at the same time. It is not that more people moved out of the middle class into the upper class. That would be good. Instead, the bottom 90% of the U.S. populace owned a smaller and smaller percentage of the nation’s total wealth … in direct proportion to how much the percentage of America’s total wealth owned by the top one-tenth of one percent increased.
Those of us in the middle class or lower have been waiting for that wealth to trickle down for thirty years now. It surprises me that there are so many people who still believe the fantasy that it eventually will even though wages have not risen against inflation in all that time. Not only do they continue to believe the lie of Reagonomics, but they now actually allow their leaders to bail out the rich banksters as a way of saving the economy by saving the people who destroyed it.
I would think that would be outlandish to almost anyone, except the lavishly rich who sit at the top, but it doesn’t seem to be. Those who are anticipating the wealth will trickle down would do far better to pull all their teeth, put them under their pillows and believe in the tooth fairy. Not only has no wealth trickled down, but it has clearly flowed the other way!
New word of wisdom: wealth never trickles down; it bubbles up. The rich always know how to get their hands on the money of the poor and the middle class, and they always know how to cling onto their own.
How the Federal Reserve could decrease wealth inequality in America
If new money all came into the economy at the bottom, it would certainly bubble up to those at the top who would find a ready market to exploit. But what starts at the top, stays at the top.
Senator Bernie Sanders of Vermont provides the following answer as part of the solution:
Now that we have a Fed Chair who recognizes the problem, the Fed must act as boldly to rescue the disappearing middle class as it did when it bailed out too-big-to-fail banks. The Fed must demand that big banks significantly increase affordable loans to small businesses to create jobs, instead of parking its money at the Fed and making risky bets on Wall Street.
That is exactly where all the free money has gone. The Bankers of Babylon have bet it all in the Wall Street casinos, creating the biggest balloon America has ever seen. When the stock-market balloon pops, I’ll place my bet on everyone in Washington saying we need to save the masses by rescuing the Banker Barons of Wall Street all over again. It is the only answer they know.
I also expect the sleepy masses will continue to buy the drivel that the only way to keep these titans from falling on them and crushing them is to save them all over again. They’d rather do that than give up their faith in Reagonomics.
For the middle and lower classes, it’s bankers, bankers everywhere, but not a buck to spend, and the banks that were “too big to fail” are now far bigger than they were when they were first failing.
How is that recovery?
Making Book on Banksters:
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