The Great Inequalizers: How Central Banks Have Unknowingly Created The Largest Wealth Disparity Ever And What It Will Mean For Investors

wealth great banks inequalizers disparity
Middle East
  • Date: 01-Jul-2021
  • Source: Forbes
  • Sector: Economy
  • Country: Middle East
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The Great Inequalizers: How Central Banks Have Unknowingly Created The Largest Wealth Disparity Ever And What It Will Mean For Investors

About two years ago, I read Walter Scheidel’s book titled “The Great Leveler”, which traces the history of how economic inequality usually, and sharply, decreases through catastrophes and mass violence. The bottom line of the book is that mass-mobilization warfare, transformative revolutions, state collapse and catastrophic plagues have been responsible for destroying the fortunes of the rich. How does this politically charged concept of “inequality” rise to the point of being vulnerable to the leveling forces in the first place? And can we look out and try to anticipate market responses as this cycle of widening wealth distributions also starts to turn back inward? I have frequently witnessed intelligent debates on how the government’s policies increases or decreases the wealth gap. But it has been very tough to find sufficient data to conclusively argue either point of view, until now.



Now many of the facts are out in a number of well researched reports, of which I will mention two here. In the recently published Global Wealth Report by Credit Suisse, the authors provide ample evidence that the action of central banks globally has been to create a massive wealth boom for the rich, primarily because the stimulus has gone into asset prices

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