‘Eye-Popping’: Analysis Shows Top 1% Gained $21 Trillion in Wealth Since 1989 While Bottom Half Lost $900 Billion

Common Dreams has the article ‘Eye-Popping’: Analysis Shows Top 1% Gained $21 Trillion in Wealth Since 1989 While Bottom Half Lost $900 Billion.

“The top one percent owns nearly $30 trillion of assets while the bottom half owns less than nothing.”

Here is what Bernie Sanders posted on Facebook.

We face a very important choice. On one hand, there is a growing movement towards oligarchy and authoritarianism in which a small number of incredibly wealthy and powerful billionaires own and control a significant part of the economy and exert enormous influence over the political life of our country. On the other hand, in opposition to oligarchy, there is a movement of working people and young people who, in ever increasing numbers, are fighting for justice. Our job is to take on the powerful special interests that have so much influence over our country and create and government and economy that works for all Americans.

If the FED stopped creating all that money, where would the wealthy get that additional $21 Trillion? Do the wealthy really dislike federal government deficits? MMT (Modern Money Theory) explains that the money the wealthy got came from those deficits. If the wealthy decided to spend that money rather than save it, there would be hyper-inflation.

The wealthy claim not to like MMT, but the descriptive part of MMT only explains where that $21 Trillion came from. MMT does not say that the FED should have created the money to be given to the rich. That idea was invented by the people who tell you that the FED shouldn’t be creating that kind of money at all. These people have no trouble taking all that money, though. Not only do they fight to get their share, but they also want to make sure that you don’t get a share.

June 15, 2019

Maybe people do not understand mark-to-market that is the basis of stock market price quotes. If you buy $100 of a stock, and the market starts trading that quantity of stock that you bought for $100 at $200, you think you suddenly made $100 profit. You think you made money because you mark the value of your stock to the price at which that stock is currently trading in the market. Your profit only exists on paper. There is no extra $100 that got created to give you that paper profit. If you wanted to sell your stock to realize that profit, you would have to sell it to someone who would give you the $200 for it. Your selling your $200 worth of stock would not even be noticed by the market. Now suppose the people who made $21 Trillion in gains decided to sell. Who would be available to buy it? Do you think the market might take notice of people trying to sell $21 Trillion? Do you think the market might change its mind about what it would be willing to pay for that stock?

Do people who pontificate about all they know about Economics 101 even think about this reality? How many of those people have ever actually taken the Economics 101 course?

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