Central Banks and Inequality
Inequality of Incomes is becoming a significant political issue.
In an interview with Jennifer Cordingly, Frank Hollenbeck discusses the contribution of central banks to income inequality.
Central bank inflation is a major cause of inequality, but this problem is usually missing from the discussion. A fuller discussion of the problem is in this article called How Central Banks Cause Income Inequality.
Inflation assists asset holders, because they get a capital gain. Often it is tax free. The people in the financial sector who manage financial assets do extremely well too.
People on fixed incomes, such as wages and pensions are hurt by inflation.
2 comments:
I hope you do not actually endorse the contents of the referenced article with a strong Austrian Econmics bias Ron. The idea that an increase in standard of living can only occur at the expense of others (for a start) flies in the face of Scripture as I read it.
QUOTE
Yet, profits and income inequalities go hand in hand. We cannot have one without the other, and if we try to eliminate one, we will eliminate, or significantly reduce, the other. Income inequalities are an integral outcome of the profit-and-loss characteristic of capitalism; they cannot be divorced.
END QUOTE
This is a nonsense to me with an a priori assumption that capitalism in its current form the only way to structure life. The biblical model as I understand it allows for all who exercise faith in accordance with the scriptures to receive increase, blessing and more.
Dennis, you can get an insight from an article without endorsing every single word in it, or the philosophy of the author. I find wisdom in many places.
That said, I do not have a problem with the words you quote. It only requires human freedom, not the a priori assumption you suggest. Everyone can be blessed, but that mean that everyone will get equal profit from their endeavours. Some will reject God’s blessing and some will make mistakes. As long as people are free, there will be inequality.
Post a Comment