It's missing the fact that the 0.01% are so ridiculously wealthy already because they control fabulously profitable enterprises, and they keep the produced value of those enterprises with insufficient distribution to everyone else.
Absent cheap-money, they'd still be in a inequitable position that wouldn't correct itself on its own.
> It's missing the fact that the 0.01% are so ridiculously wealthy already because they control fabulously profitable enterprises, and they keep the produced value of those enterprises with insufficient distribution to everyone else.
What do you consider "fabulously profitable"? Take a peek here for a reality check:
A "record high" average profit margin only equals to around 10% and at least theoretically that needs to balance out the bad years.
> Absent cheap-money, they'd still be in a inequitable position that wouldn't correct itself on its own.
Of course inequity will remain, even if everyone lost 90% of their paper wealth, the ratios remain the same. However, you're implying there is a problem with inequity, I submit to you that you need inequity.
If all the money were to be expropriated and spread out to all the people, there is nothing left for investment. Individually, the money just doesn't amount to much and it would likely be consumed right away, or used to pay off debt. Over time, that money would accumulate at the top again, but in the meantime, you would have an economic disaster.
Of course you could have the government do all the investment, but that just means you shifted all that inequity from private individuals (who at least in theory will use their money somewhat wisely) to a bureaucracy which has no incentive to be efficient.
The real problem is that we have a monetary policy that protects poor investment. There is no need for private individuals to manage their wealth properly, to make informed investments, etc. All they need to do is put their money into diversified stocks and real estate, because they can rely on the governments bailing them out if things go south.
Absent cheap-money, they'd still be in a inequitable position that wouldn't correct itself on its own.