By Tyler Durden | Zero Hedge
If readers want more evidence that the current economic system is rigged against the working-poor, well, look no further: New Federal Reserve data shows how these monetary wizards exacerbated the wealth gap during the virus pandemic via unprecedented quantitative easing programs.
Never before has the Fed unleashed so much monetary stimulus in a given quarter (2Q20) to shield the economy from the virus-induced downturn. The result is a “K-shaped” recovery, disproportionately affecting low-wage service workers and households of color, while billionaires, cent millionaires, and millionaires added record wealth. The Fed’s monetary interventions resulted in surging stock and other asset prices, while those who owned no assets did not participate in the “V” recovery.
Earlier this week, Swiss bank UBS and accounting firm PwC published a new report that showed the wealth of the world’s 2,189 billionaires jumped to a new record high of $10.2 trillion in July, surpassing the $8.9 trillion record at the end of 2017.
It was only when the world’s central banks aggressively expanded their balance sheets, beginning in March, that the rich got richer…
Bloomberg notes that the Fed data shows the top 1% of Americans are worth $34.2 trillion, while the poorest 50%, around 165 million people, control about $2.08 trillion, or less than 2% of all household wealth.
Meanwhile, the 50 wealthiest people in the country are worth almost $2 trillion, according to the Bloomberg Billionaires Index, up $339 billion from the start of 2020. Tesla’s Elon Musk is a prime example of a billionaire who saw his wealth rapidly increase this year, up $75.6 billion year-to-date, to $103 billion.