On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.
Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.
The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.
