Fed’s Jackson Hole Meeting Takes Place In The Country’s Wealthiest County
What better place for the Fed to have their annual company picnic than at the apex of the country’s wealth inequality gap?
That’s exactly what they’ll be doing when they meet at Jackson Hole next week. It is located in Teton County, which has the “nation’s highest per-capita income from assets”, according to Bloomberg.
A study by the Economic Innovation Group points out that Jackson Hole has attracted the “ultra-rich” in recent years and that the “gap between counties with the lowest and highest asset income per capita rose sixfold between 1990 and 2019”.
The study looked specifically at “income from assets”, which excludes wages and government assistance. This category of wealth has skyrocketed in places like New York City and the San Francisco Bay Area.
In Manhattan, for example, asset income per capita of about $64,200 is 13 times that in the Bronx, the report notes.
The county with the lowest asset income per capita is in South Dakota. Coming in at $2,800 per person, the number is about just 33% of the nationwide average.
Kenan Fikri, research director at EIG, commented: “I was pretty shocked that so much of the country has derived so little benefit from the boom in asset prices and asset values that we’ve seen over the past couple of decades.”
People with large assets bases are disproportionately the beneficiaries of Fed policy, while those working a normal 9-5 are left brutalized by the inflation the Fed leaves in its wake.
Only 15% of households own stocks and about 13% of households own business equity or a second residential property.
Fikri concluded that even though “the condition of being poor today is better than it was in 1970,” some still don’t have access to “avenues for wealth creation.”
We can’t wait to see what new techniques the Fed comes up with for prying the wealth gap open even further after their meeting next.
Sat, 08/21/2021 – 23:00
Jump To The Original Source