Low interest rates over extended periods create asset inflation that outpaces wage growth, causing those who already possess capital to accumulate more wealth while those without assets must rely solely on wages, thereby widening economic inequality; achieving fair opportunity requires ensuring everyone starts with equal access to assets.
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Why Low Interest Rates Are Making The Rich Richer! #shortsAdded:
Look at the way inequality in the world has gone. In fact, in the last 15-20 years it has increased because of this exact reason. Very low interest rates for a long period of time has created this kind of growth of capital return.
Those who have money have made even more and those who haven't have had to find their way through it and that's the issue. At the very core if I have to simplify the idea, I could say that as long as wage price growth doesn't keep up with asset price inflation inequality is bound to continue to go up. What I have told people what everyone wants is a fair opportunity.
But you got to start at the same place.
And you got to start with the same assets. That's what I'm trying to help do.
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