The primary driver of wealth inequality isn't income, but asset ownership. Government money printing to cover deficit spending inflates asset prices. This forces those who understand finance to buy assets, which then appreciate, widening the gap between them and those who don't own assets.

The stock market's performance isn't primarily from productivity gains. It is mostly a consequence of massive money printing that devalues the dollar and forces capital into assets to avoid inflation. Investors are mainly keeping pace with inflation, not getting richer in real terms.

While inflation erodes the purchasing power of wages, it simultaneously increases the value of assets like stocks and real estate. This dynamic creates a regressive wealth transfer where asset-poor earners lose ground while the asset-rich are hedged or even benefit financially.

Investors feel richer as their brokerage accounts show rising dollar values. However, when assets like the S&P 500 are priced in gold, they are down significantly. This indicates currency debasement, not real value creation, is driving nominal gains.

Printing money doesn't create value; it inflates the price of finite assets like stocks and real estate. Those who own these non-inflatable assets see their net worth skyrocket, while those holding cash or earning wages are robbed of purchasing power, creating a widening wealth gap.

Despite official CPI averaging under 2% from 2010-2020, the actual cost of major assets like homes and stocks exploded. This disconnect shows that government inflation data fails to reflect the reality of eroding purchasing power, which is a key driver of public frustration.

Inflationary policies needed to manage US debt will likely cause stocks to soar in nominal dollar terms while declining in real value. When measured against gold, the S&P 500 is already down 25% since 2022 despite its dollar-based gains, a trend that is expected to continue.

High measured inflation figures are misleading due to "quirks of measurement." For example, rising stock market values in portfolio management services artificially inflate reported inflation. Correcting for these biases reveals a less problematic inflation picture, justifying a more supportive monetary policy for the labor market.

Inflation should be viewed as a form of government theft, not a natural economic occurrence. It devalues cash and wages while the resulting financial stimulus disproportionately benefits those who own assets (stocks, real estate). Not owning assets guarantees a loss of purchasing power through this wealth transfer.