Incomes

There is much talk about income inequality and one of the causes that is rarely discussed is the increase in the money supply. The government creates money by issuing it. The private sector creates money through the banking system. As the money supply increases loans become more available. Rich people will borrow money to buy real estate which will appreciate in value while poor people buy cars which will depreciate in value. Rich people invest in the stock market and poor people buy refrigerators.