As the Federal Reserve continues printing money, its chair, Jerome Powell, insists that the central bank’s policies will “absolutely not” lead to more income inequality.
RT’s Keiser Report points out that Powell forgot to mention the wealth gap, as money-printing causes asset prices to increase.
Stacy Herbert and Max Keiser look at the chart showing the share of US aggregate wealth from 1983 to 2016. They note that middle incomes have seen a huge collapse in that period, being nearly cut in half.
Talking about the Federal Reserve’s cash injections, Max says: “It’s remarkable that these hourly wages suddenly skyrocketed because of the money giveaways from the Fed. It shows that, up until that moment, the average worker’s hourly wages were below subsistence.”
That proves people in America are “living at the subsistence wage, which is just one notch above slave wages,” he says, adding, “That’s where America is at: 200 million Americans are at subsistence wages.”
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