The Growth of the 1%

Inequality in society is really becoming a real issue. So alarming is the wealth gap in society, the most powerful woman in the world, Janet Yelland, the chair of the US Federal Reserve has even stated it.

[http://www.federalreserve.gov/newsevents/speech/yellen20141017a.htm]

“The distribution of income and wealth in the United States has been widening more or less steadily for several decades, to a greater extent than in most advanced countries….The extent of and continuing increase in inequality in the United States greatly concern me. ”

For the most influential central banker to speak out this issue, is sending a message to the world.

The rich are getting super rich and the poor are trapped.

[https://www.youtube.com/watch?v=QzQYA9Qjsi0]

Paul Krugman, the famous US economist has also spoke out about this.

In a period of low growth, people with assets, are getting richer as asset values are rising. This means again means the rich are getting richer, and this can only lead to down stream problems, as wealth inequality will result in the poor being effectively marginalised and the rich could even buy political power. It is a lethal cocktail.

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