by Ryan McMaken
Mises.org
The Trump administration has tried to cultivate a reputation for preferring “Main Street over Wall Street.” Unfortunately, this image is belied by the administration’s push for artificially low interest rates and monetary inflation. By embracing these policies, Trump has put himself squarely in the camp of “Wall Street over Main Street.”
This is because a policy of monetary inflation and low interest rates favors wealthy owners of assets while imposing higher prices and fewer income gains on people of more modest means. The Trump policies of inflation and low interest rates fuels levels of inequality far greater than would exist under relatively free market conditions. This is because the low-interest-rate policy increases disposable income far more rapidly for people at higher income levels than it does for people at lower income levels.