The Fed's massive inflation is far more responsible for the rise in inequality in the US than anything else (and far more than a change in capital gains taxes). Including their constantly exploding bubbles that hammer the bottom 75% far more than the rich in standard of living terms.
The cost of a house has doubled in 15 years (and housing is currently spiking again while real unemployment is 14%, thanks to the Fed's massive housing inflation). The cost of gasoline has gone up 3 to 4 fold in the same time frame. The cost of groceries have followed a huge inflationary curve over the last 15 / 30 / 50 years. Ditto the cost of a vehicle.
Rich people can shield their money from inflation (easily in fact), average or poor people cannot shield their incomes from inflation. That simple fact is responsible for a huge destruction in standard of living in the US. Incomes have not even remotely kept up with inflation.
There are many problems with the theory you espouse here but I will pick on just one thing. The idea that over the last X number of years you can reasonably compare one item to another for many things. A car or a house in the 1950's does not remotely compare to one today, the technology and the safety elements in a 1950's "box with wheels" compared to what you get with a modern car?
Incomes are stagnant or declining in real terms we can agree on that. While low interest rates and easy credit are an element of that, why blame it on the "Fed" when easy money is happening the world over? After all, it is easy for average or poor people to shield their income for inflation, it is called getting a raise. Problems arise when the economy and tax system values capital over work - which was my original point.
The cost of a house has doubled in 15 years (and housing is currently spiking again while real unemployment is 14%, thanks to the Fed's massive housing inflation). The cost of gasoline has gone up 3 to 4 fold in the same time frame. The cost of groceries have followed a huge inflationary curve over the last 15 / 30 / 50 years. Ditto the cost of a vehicle.
Rich people can shield their money from inflation (easily in fact), average or poor people cannot shield their incomes from inflation. That simple fact is responsible for a huge destruction in standard of living in the US. Incomes have not even remotely kept up with inflation.