THREAD:

Money Printing Boosts Inequality

Disclaimer: This information is very complicated, if you are half asleep come back to it later.

American Government Prints Money (Federal Reserve)

Printing Money Drives Up Inflation

Inflation is GOOD for Equityholders (since Equity Values are boosted by inflation)

Inflation is BAD for Debtholders (since it results in them being paid back in currency that is weaker than the currency they originally lended out)

Inflation is GOOD for Borrowers (since it results in them paying back currency when it is weak, while they originally borrowed it when it was strong)

Inflation is BAD for Workers (Wage-Earners, Inflation causes their wages *in real terms* (their buying power) to decrease)

The people who WIN BIG due to High Inflation Caused By Money Printing are **Equityholders who acquired Equity via Borrowing Money**

Their Equity increases in nominal price (Equity Values get Inflated) while their debts decrease in value (since inflation decreases the real interest rates they must pay).

Money Printing Increases Inequality, Because

-It Makes Equityholders Richer
-It Makes Equityholders who got their Equity bia Borrowing Money A LOT RICHER
-It Makes Debtholders poorer
-It makes Workers poorer

Keep in mind, even without Money Printing Driving Up Inflation

It is generally the case that Equityholders (Owners, Business Owners) are already RICH PEOPLE

while

Workers (Wage-Earners, Employees) are already POOR PEOPLE

Money Printing Driving Up Inflation exacerbates this pre-existing Wealth Inequality