How is the stock market responsible for income inequality?

The affluent people have the wherewithal to buy better financial literacy or access to financial literacy via fund managers and advisors and quality information. read more

In much the same way flea markets are responsible for income inequality. The stock market is just a big, specialized flea market where things of value are exchanged. As at any flea market, some participants make wise decisions, some make foolish decisions, some are lucky and some are unlucky. read more

3 The CBO defines market income as the sum of labor income, business income, capital income, and retirement income. 4 Data for Gini coefficients before 1947 are limited, but Picketty and Saez (2003) examine inequality before and after the Great Depression using tax return data to study the share of top incomes relative to total income. read more

The rich can afford to pay for information about better investments, widening the income inequality gap. read more