As Seen On Forbes: Wealth Inequality Is At Roaring Twenties Levels

by Jesse Colombo 

As seen on Forbes by’s Jesse Colombo: “America’s Wealth Inequality Is At Roaring Twenties Levels.”

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With the 2020 presidential race kicking off and the election of a new crop of radical politicians, U.S. economic inequality and how to address it is one of the most important topics of the day once again. In particular, a statistic that shows that America’s wealth inequality is back to Roaring Twenties levels is making the rounds.

While many left-leaning commentators and politicians have been quick to blame capitalism for this wealth disparity, I want to set the record straight by explaining that much of America’s wealth inequality is the byproduct of a household wealth bubble that is the result of Federal Reserve market meddling (see my household wealth bubble report in Forbes to learn more).

U.S. household wealth recently hit a record of 535% of the GDP, while the historic average since 1952 is 384%. As I’ve explained in my report, when U.S. household wealth reaches an extreme relative to the underlying economy or GDP (as it did in the prior two bubbles), a mean-reversion or a correction is in the cards. The most recent household wealth bubble has benefited the rich over the middle class and the poor because the rich own a disproportionate amount of assets such as stocks and bonds, which have been inflated by the Fed since the Great Recession.

Read the full article on Forbes.


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