If you know your history... - W.C. Varones

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5.01.2013

If you know your history...

T-Dub sends in this quiz:

The start of growth in income inequality coincides with what historical event?



ANSWER: dbbeebs and DooDoo Economics nailed it. In 1971, President Nixon, an admitted Keynesophile, took the dollar off the gold standard and turned it into a pure fiat currency managed by the propeller-heads at the Dirty Fed.

For more on how Fed money-printing creates asset inflation for the rich and food and energy inflation for the poor, please see January 2011's Government-sponsored income inequality in the U.S.

P.S. Note that the exact same time is when commodities went Full Retard and hourly wages decoupled from productivity.

7 comments:

zeke said...

The birth of Varones.

W.C. Varones said...

I'm doing OK but not really well enough to move the national Gini coefficient.

dbbeebs said...

Total removal of gold backing the currency, Nixon was the culprit.

Anonymous said...

Oprah's first year on TV!

Doo Doo Econ said...

The end of dominance by UCLA in college hoops? No, the gold thing.

K T Cat said...

Sorry, I'm not buying it. The connections are just too remote and the data correlation isn't there.

Try this instead.

Income inequality is a direct result of embracing moral relativism.

W.C. Varones said...

KT,

I will concede that your point explains the low end.

But the "income inequality" that liberals complain about is driven as much or more by the upper-end that they want to tear down.

You can't argue that asset inflation isn't great for leveraged asset owners and highly-paid employees in asset-related industries.

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