The wealth divide is exacerbated by two different types of inflation. While wages are benchmarked against CPI (consumer goods), wealth for asset-holders grows with "asset price inflation" (stocks, real estate), which compounds much faster. Young people paid in cash cannot keep up.

The idea that QE wasn't inflationary is a fallacy. It massively inflated financial assets and housing, not consumer goods. This widened wealth inequality and fueled intergenerational tensions, which became a primary driver for the rise of populism—an unintended consequence that central banks eventually acknowledged.

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.

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.

Unlike the 2008 crisis, which was concentrated in housing and banking, today's risk is an 'everything bubble.' A decade of cheap money has simultaneously inflated stocks, real estate, crypto, and even collectibles, meaning a collapse would be far broader and more contagious.

QE doesn't increase private sector purchasing power. It is an asset swap where the Fed buys Treasuries and provides cash-like deposits. This pushes investors into riskier assets like stocks and corporate debt, causing financial asset inflation, but not necessarily consumer price inflation.

The original definition of inflation is an expansion of the money supply. By shifting the definition to mean rising prices (a consequence), governments can deflect blame for inflation onto businesses, unions, or foreign events, rather than their own money-printing policies.

Increasing the money supply doesn't lift all prices uniformly. It flows into specific sectors like finance or real estate first, creating asset bubbles and exacerbating wealth inequality, as those closest to the "money spigot" benefit before wages catch up.