We're Living Through the Greatest Transfer of Wealth From the Middle Class to the Elites in History | Opinion
2021-10-29 — newsweek.com
Meanwhile, [[during the pandemic,] the Federal Reserve was pumping trillions of dollars into the markets, helping to inflate stock valuations. Hundreds of thousands of small businesses were murdered in just a few short months--by government edict--while seven tech companies gained $3.4 trillion in market value. If you were able to access capital--which is code for already being big or wealthy, even if you weren't in some cases financially sound--it was plentiful and, for debt capital, available at historically low interest rates. 2020 became a record year for IPOs and for other capital-raising vehicles like special purpose acquisition companies. And some of this capital was likely used to compete with your local small businesses.
The one-two punch of government fiscal and Fed monetary policy continued to destroy the fabric of the economy for the average American. It dislocated the labor markets and the supply chain and it has ultimately led to inflation, which is making the basic cost of living much more expensive for Americans all across the country
In short, while your dollars today purchase fewer goods and services and your lives are more expensive and disrupted, those who are well-connected and asset-rich benefitted from outsized wealth increases driven by government policy.
Of course one party always seems to say "no" to any aid that might help support small businesses, because "that's socialism". With big business and elites having an inherent advantage, even when their considerable props are removed, small businesses still can't compete (e.g., consider the cost of capital between your average big business and small business -- it's not even close, with a healthy small business paying 20%+ for capital, and big business paying 0-8% -- or even less than zero).
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