re: Income inequality gap question from town hall

quote:

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The funny thing is the gap between African Americans and the general public was not as wide as it was prior to LBJ creating the welfare state. Thomas Sowell speaks about this all the time and it gets no coverage.

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LBJ created the Welfare State and increased income redistribution when the World, not just the USA, was using the Gold Standard.

This matters because Gold is essentially a fixed amount. Trivial amounts are added to the world supply annually. The difference between most and least was always closer under GS as the ceiling was essentially fixed, theoretically one could have "all" and everyone else "nothing". Fiat money money removed the ceiling, there is no "all" when more can just be created out of thin air.

Most poor and poorly educated still think in terms of GS "all or nothing". Child like ignorance, much the same as "best" fixation (best food hamburger vs hotdog, best car/truck/SUV, best career, etc.). The smarter people understand Fiat and now create wealth out of nothing (think virtual properties like twitter, tiktok). The limit is imagination and stupid people imagine stupid stuff.