Does anybody want to guess what the 2 biggest drivers of wealth and income inequality in the US are today?
#1 is Federal reserve policy that inflates asset prices. Only rich people own stuff, not poor people, so the rich are the ones that benefit from inflated prices.
#2 is plain and simple demographics. Peak wealth and income for an individual in the US occurs between ages 45 and 65. These people are at the peak of their careers and have worked and invested for 20+ years. Well guess who makes up the bulk of the population in the US right now?
That's right, people age 45-65. The boomers are that age. Our population distribution is skewed in favor of people who are the peak of their income and wealth. These same people, by virtue of having invested for 20+ years are also benefiting from #1 above.
So is it any wonder that wealth and income inequality is going up? Young people have no assets to speak of and most can't even get a job these days, because of lack of growth.