Wealth gap

From 30,000 feet the number one economic problem facing the country is the gap between the rich and poor. There are a number of reasons why this gap is widening but the most important stems from the creation of money. When the government first creates new money the winners are the banks and businesses as they get the money at current prices. Then as prices rises because of this new money those who owned property prosper. Home owners see the value of their property go up as do those who own other investments like stocks and bonds. As time passes lower income groups have access to the growth but at higher prices. They must borrow to stay afloat and this combined with no increase in asset values, since they had no house or stock, causes their net worth to decline. Their wages do not keep up with prices adding additional burdens. Retirees see their saving eroded away by inflation. Each year the national debt rises and governments must create more money to balance the budget and thus the problem continues. The solutions is for government to spend less. It doesn't require a cut in spending but increasing spending at a slower rate preferable at a rate less than the inflation rate. Over a long period of time this will slowly ease the pressure to create money and in time will solve the problem. Government spending stayed at about 20% of GDP for many years up until 2018 when it started up and since has averaged over 30%. This is a 50% increase over the past 4 years compared to the long term average since 1940.