Posts Tagged ‘state of the union’

CNBC Article on Income Inequality

I mentioned income inequality in yesterday’s piece. Seeing as the president is apparently going to address this issue in his state of the union address tonight, I thought it appropriate to mention it again and share this short article I read on cnbc today. The author makes a few great points but the most telling point to me is the fact that from 1979 to 2010 real income for the the bottom 20% increased by 49%. He also points out that the gap has not widened but narrowed since 2007. So when Obama tells you tonight that the gap is widening he’s lying. It is apparent that this is just the issue du jour for the Obama administration. It is an obvious attempt to distract from the disaster that is Obamacare or the NSA before midterm elections. It’s an attempt to pander to his dependent constituency.

One point I didn’t make yesterday is that a by-product of the fed printing money (and giving it to the rich) is to cause consumer prices to rise. So while the wealthy get all the cheap money, the poor, and middle class, and those on fixed incomes get punished with higher prices on things like milk, gas and rent. You think the rich care if the price of milk is $4 or $40? Check out http://www.shadowstats.com for some legit reporting on inflation, as opposed to the BS the BLS puts out. I’ll get into inflation another time but for now suffice it to say money printing benefits the rich and punishes the poor. To the extent income inequality is actually a problem, government creates and exacerbates it.

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