Yes it is. What you're conveniently forgetting is that governments and banks (which are kind-of government, except profits go to private hands) think this is a very, very, very, VERY good thing indeed.

Why? Well, what is wealth inequality? It is people and companies (indirectly also people) not spending money. Just keeping it. "For the future". In bank accounts. On the stock market. In government bonds. Under their pillow. This also explains that a very large chunk of "the rich" is in practice people's pensions.

This means that governments can create almost unlimited new money, without taxing anything, and know it'll be hoovered up by the wealthy. What happens in practice? Wealthy people and companies will provide goods and services to hoover up that money, but they won't want (any new) goods and services in return. In other words: it is a way for governments to acquire almost unlimited goods and services in return for ... nothing at all. A few updates to a database "to be paid in the future".

And if you look at what governments spend money on, it's "everyone", the "public good", in other words: on the poor. In other words: this is a way for the poor to get more stuff now.

You want to kill this effect? Expect every government employee, every pensioner, every unemployment benefit receiver, every sick or disabled person and so on to scream bloody murder, because you'll have to seriously cut a LOT of benefits. Or, frankly, if recent history is any indication, to actually just kill you with a 3d printed gun.

Of course, because the government is still overspending, and debt servicing is becoming bigger and bigger. New debt is adding less and less spending power to government budgets. In some countries debt servicing is already bigger than the growth in debt (and not just Argentina and Pakistan). You can calculate: if Trump continues like this, the US will cross this critical threshold halfway through his term (assuming 5% interest rate). At that point the US government will lose the ability to trade government debt for goods and services. And last Trump term spending went up and up and up as his term progressed, and so far the same is happening this term. Had we elected a deceased possum instead of Trump, our country would have been fiscally better of than we are now.

So you'll see the maga republicans join the democrats in shouting and screaming how evil banks and "the rich" are, in 3 years or less. What's scary is that due to Trump this moment is coming towards us a LOT faster than it was under Biden, despite, of course, Trump getting elected on the promise that he would make the opposite happen. But, as said before, a dead possum would have far outperformed Trump on the fiscal front.

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reactordev 6 days ago | parent [-]

>this is a way for the poor to get more stuff now.

Ummm, what? That’s not how inequality works.

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spwa4 6 days ago | parent [-]

Government spending benefits everyone. Which means it effectively doesn't benefit the rich much at all. Hence ...

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baq 6 days ago | parent | next [-]

Government balance sheet deficit is private sector surplus. Thus, government spending benefits primarily companies doing business with the government; there’s a lot of incentive to own a business doing that and this leads to lobbying, corruption, outright fraud and in the limit kleptocracy.

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reactordev 6 days ago | parent | prev [-]

Government spending is going to get choked out from the middle class and lower class not having any money. You think the rich pay taxes?

	▲	spwa4 6 days ago \| parent [-]
		No, I don't (well, somewhere between 5% and 20%, it's not magical). But how it works, fundamentally, the rich exchange goods and services for new debt, in various forms. That also shows why you can't touch the rich with the government: first, where would it get goods and services? And when the government gets goods and services it's for "the public good", which effectively means largely for the poor (especially if you reason the way governments do: the palace for the prime minister is the infrastructure that provides for the poor. So that room is really for the poor too, just like the many side-hustles the prime minister and many government figures have. But even disregarding government excess ... mostly these goods and services acquired really are for the poor). Second, the wealth of the rich is really something like 1%-5% of those new goods and services produced. That's what it fundamentally is, that wealth. If you take that away, the incentive for production falls away. And even that ignores the added difficulty that the richest "rich" in the US, by an extreme amount, are the pension funds, especially in aggregate. Attacking the rich will mean taking pensions from old people. Which leads immediately to the consequence of going after big companies and "the rich": no more (much less) new goods and services. Because nobody's going to replace them, or, if someone does replace them, they become the new rich and you've achieved nothing. AND there's a major, major, MAJOR catch in replacing the rich. The current rich see the social contract roughly like this "if we provide society roughly as-is, we get to be rich". If you replace the current rich with new MAGA rich, for example, they will demand a new social contract which you may VERY much dislike. For example, Microsoft, Google (even Apple, when it comes to computers) see the freedom to develop and run your own programs, as well as free communication over the internet, as an essential part of their "deal" with society. Chinese and Indian computer producers very much do not see things this way (but are largely, not 100%, 99%, forced into allowing it, at least in the US and Europe, by the current US rich). It seems to me unlikely in the extreme that if the US gets a new rich class, replacing these companies, that this will remain so.