|The wealthy benefit by playing the game differently from the rest|
No matter what the Fed did policy-wise to prop up assets, it was their policies that allowed the banks and the ultra-rich to create such a bloated housing market in the first place, and it was the collapse of that market-based on the poor bets of the banks that created the financial crisis-that most Americans are still reeling from.
The numbers are the numbers. The rich are substantially better off in America than the poor. So, the question remains, "Is it the Fed's policies that are making the poor poorer?"
The answer is yes and no.
Yes, in that the policies contribute to the problem, but no in that what really makes the poor poorer is their lack of financial education.
For many years, I've said that the system is built to benefit the rich. So, those who play by the old rules of money-go to school, get a good job, save money, buy a house, and invest in a balanced portfolio of stocks, bonds, and mutual funds-are at a disadvantage. It just doesn't work any longer. In fact, I'd wager that the top 10% of those high-wage earners that saw a decline in income from 2010-2013 were simply high-paid employees who play by the same obsolete rules of money.
Of course I don't have to make that bet, since this chart from the Economic Policy Institute shows that the top 1% of earners (i.e., your business owners and entrepreneurs) were actually up around 4% in income between 2010 and 2013:
Why is this? Because the ultra-rich know how to play by different rules when it comes to money. In fact, I wrote about those new rules in Conspiracy of the Rich over six years ago. The rich who play by these rules still prosper today.