I provided several recent articles pertaining to the Federal Reserve, its formation, its role and its failures. The Fed became the US government’s central planning arm of the political class, although it was never defined as such.
Economists are mostly in agreement (save the most interventionist-oriented ones) that central planning does not work. But central planning obviously does work, just not for ordinary citizens. It is, and always has been, a tool of the political class to enrich themselves and their cohorts.
Central planning has always adversely affected the middle-class, both by shrinking it in numbers and relative income. It has always benefited the upper class at the expense of the middle class who are the biggest losers as their income/wealth get distributed to the upper and (sometimes) lower class. The lower class is usually marginally affected because politicians increase benefits to buy their votes.
The chart below is from the Pew Research Center, not known for conservatism or free-market economics. It shows three classes of income categories. The dramatic increase in upper class income at the expense of middle class income is apparent.
The shrinking middle class is apparent. So is the increasing upper class, which now owns the biggest share of aggregate income. They define these in terms of dollars and not in terms of population.
The following chart shows clearly who has benefitted the most from these shifts:
A look at the distribution of wealth is even more troubling:
The above chart supports the old saying: “the rich get richer and the poor get poorer”.
As shown in the next chart, the incomes of the richest have increased faster than any other grouping. This outcome results from central planning everywhere. Politicians reward this class and it reciprocates. Central planning always leads to this type of incestuous relationship.
Pew Research is to be commended for providing these charts. They clearly show the destruction of the great idea that once represented America and freedom.