[pasquinelli]

> How does increasing wealth inequality drive price increases?

i'm not the person you asked, and i'm just spit-balling, but here's a way: wealth inequality means there's a group that has substantially more wealth than normal, let's call that group A, and the complimentary group of people who don't have substantially more wealth than normal, let's call them B. A's wealth ultimately comes from B-- you know, you got workers who make you more money than you pay them, you extract rent from them, they buy your stuff.

past a certain point of inequality, A controls so much wealth that they could exert power over the market to squeeze B even more-- wages lag further behind productivity, rents go up, goods cost more. this is inflation, yeah?

[merth]

i'm not the person you replied but if wages lag furhter, how rents going up? it should go down since there is noone to be able to pay higher rents. they have no choice but either convince homeowner or downgrade. and Group A(rich + upper-middle) won't rent since they have enough wealth to buy a house, they may upgrade and cause inflation in luxury houses/goods.

[motorest]

> i'm not the person you replied but if wages lag furhter, how rents going up?

The greater the number of people who cannot afford buying a home, the greater the number of people whose only option is to rent.

The more people enter the rental market, the higher rental prices get.

It would be very interesting to have statistics on how many people share apartments/rent rooms. I'd bet those numbers would be spiking.

[Hemospectrum]

Rent can continue to go up as long as there is room (literally physical space) in whatever housing is still on the market. Ten years ago you might have been able to afford your own apartment. Now you need three roommates. Soon you'll need seven, and then fifteen, and that can just keep going up as long as that number of bodies can be crammed into the same lodgings.