The Red Queen’s race and the real winners from Quantitative Easing: Celebrating the five year anniversary of redistributing wealth to the top.
The Federal Reserve is celebrating its 5 year anniversary of Quantitative Easing. As the stock market reaches record highs, it is useful to examine the real winners from QE. Luxury good purchases have done extremely well during this period as income inequality in the nation has reached levels last seen during the Gilded Age. Yet for the average American worker, salaries are stagnant and wage growth is nearly non-existent. After factoring in for inflation, many are stuck in having to run faster and faster just to stay in the same place. The Red Queen’s race in Through the Looking Glass involves a race where you have to run faster just to stay in the same place. Or in other words, trying to maintain a middle class lifestyle in an era of massive Fed intervention. QE has made it harder for savers and most American families to keep up while the leveraged top has been able to maximize all the benefits of QE. After 5 years, it is rather clear who the winners are.
Examining luxury goods
Few people have the means to buy Tiffany or Coach products. So it is interesting to compare these luxury brand companies versus other places where average Americans shop after QE: