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View Diary: The banana republic in which we stand (196 comments)

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  •  An inevitable feature of increasing inequality (9+ / 0-)
    It struck me recently, going to the Museum of Fine Arts in Boston, at an admission cost of $25, and facing the cost of college tuition for my kid, that the finer things in life, not just food, housing, fine wine, etc., but also education, art, intellectual discussion, and so forth, are becoming more and ever more the provenance of the well to do. And that in itself is a serious problem of the 1% as well.
    Really, the massive inflation in the cost of items and activities consumed by the truly wealthy is an inevitable feature of the massive concentration of wealth and income at the very top.  We've also seen it take the form of massive inflation in the value of the sort of assets that the very wealthy acquire (ie, cost of housing in places like Manhattan).  After all, there is an ever-increasing amount of money at the top that is chasing a limited supply of extreme luxury goods (not so-called "aspirational luxury" goods), high end real estate, business and investment opportunities, cultural activities, etc.  

    I suspect that if one could calculate an inflation rate for the top 0.1%, it would be substantially higher than it is for the country as a whole.  Needless to say, the Fed doesn't consider this a problem (their policy explicitly ignores asset inflation) since any efforts to tackle it wouldl require addressing income inequality.

    Political Compass: -6.75, -3.08

    by TexasTom on Sun Apr 07, 2013 at 08:50:12 AM PDT

    [ Parent ]

    •  The Fed under Ayn Rand acolyte Alan Greenspan (5+ / 0-)

      considered rising wages to be the absolute worst form of "inflation", and acted accordingly. That was his job, under the Republican Southern Strategy, just as it was Clarence Thomas's job at EEOC to gut enforcement of employment discrimination laws.

      Ceterem censeo, gerrymandra delenda est

      by Mokurai on Sun Apr 07, 2013 at 09:08:08 AM PDT

      [ Parent ]

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