Via Zero Hedge:
While it is now undisputed by even the Federal Reserve itself, that all the “benefits” of QE have accrued exclusively to the wealthiest segment of society, those 0.01% whose wealth is mostly invested in financial assets which have inflated in direct proportion with the Fed’s balance sheet, some have tried to suggest that because the disposable income of the average American has also increased in the past few years, then QE has been a success. There is one problem with that statement: it isn’t true.
As Eric Sprott points out in his latest letter, “if one looks past headline figures, things are not really getting better. As shown in Figure 1, real disposable income per capita in the U.S. has increased only modestly since the Great Recession. However, all of this increase is due to Government Transfers, not from an improvement in the real economy. If we exclude those transfers from the numbers, disposable income per capita is actually lower than it was at the end of 2005 and has been painfully flat since 2011. Also, those numbers assume that the headline Consumer Price Index (CPI) accurately represents people’s purchasing power.”
Presenting our chart of the day: disposable income with and without government transfers.