President Barack Obama talks a good game about the wealth of the storied “1%”, but his administration will be remembered as the golden age of the well-heeled. Despite his redistributionist policies and rhetoric, income concentration has accelerated under his regime. Dick Morris summarizes the numbers. Under Bill Clinton, the 1% accounted for 45% of the nation’s income growth. Under George W. Bush, that figure went to 65%. Under Barack Obama, it has zoomed to 95%. Morris points out that the principal driver of the economy has been the super-accommodative printing press operation of the Federal Reserve. It has created vast pools of liquidity which do not reach the mainstream economy in the form of credit, but stay within the financial sector to support speculation in the equity and commodity markets. Not surprisingly, the already rich are the main beneficiaries. In other words, the real economy is in the tank, but the portfolio economy is doing quite well, thank you very much.
Posted on: Sat, 14 Sep 2013 18:13:53 +0000
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