Part 5/12:
A detailed analysis compares the growth of the monetary base to asset prices like the S&P 500, median incomes, and property values, revealing substantial disparities. Asset values have skyrocketed—e.g., the stock market has increased 50 times since the 1960s—while median family income and property prices have also risen, but not enough to keep pace, resulting in a depleted middle class and increasing wealth inequality.
The discussion underscores that inflation, as Milton Friedman famously said, is "always and everywhere a monetary phenomenon," with the relentless growth in money supply diluting the value of money and assets. This creates a scenario where wealth accrues disproportionately to those who own assets, further widening the wealth gap.