Off The Cuff: The System Is Purposely Insidious

In this week’s Off The Cuff podcast, Chris and Wolf Richter discuss:

• Only An Elite Few Benefit From The ‘Wealth Effect’
• The System Is Purposely Insidious
• Only Revolution Will Change Things At This Point
• What The Heck Is The Fed Up To Next?

Get ready for ‘no punches pulled’ barnburner of a discussion. Both Chris and Wolf are hopping mad at the increasing squeeze our system is placing on the masses — the ‘wealth effect’ created by current Fed policy is only enjoyed by the already stinking rich, and everyone else is being left fewer and fewer crumbs, as Wolf explains:

Healthcare costs about the same whether you’re poor or rich. Let’s say the median income in your are is $57,000. So when healthcare reaches half of that or more, it becomes essentially unaffordable assuming you don’t have access to an employer sponsored plan. You cannot spend half of your income on healthcare. It’s just not how it works.

At the higher end where you have $500,000, a million dollars, or $10 million in income a year, whether you pay $25,000 or $50,000 in health insurance doesn’t really make that much difference to you. So that’s the problem we have now. We have a system where those who are exposed the most to the wealth effect that the Fed has generated — they don’t feel the pain at all from this enormous inflation in healthcare costs.