Income Inequality Did Start Around 1970
Over at Mises Canada today I discuss whether income inequality really is increasing, or whether it is a figment of some statisticians imaginations. It's real alright, but the cause is more obvious than anyone wants to let on.
The income and wealth divide that is now seen as a problem did start right around 1970 (depending on what type of data you want to look at to judge this, it started as early as 1968 or as late as 1973). The income divide is not fabricated, nor are these dates just pulled from thin air. The period of time right around 1970 was unique in recent history as it was the end of the Bretton Woods era and the start of a pure fiat standard by all the central banks of the Western world. It ushered in a period of unanchored central bank credit creation, and government deficit spending. If one wants to blame something for the inequality that coincided exactly with this momentous event, why not pick the obvious reason?
Read more here.