American workers are losing

As an entrepreneur who owns real assets — real estate, spectrum licenses, and a publishing library, among others — I was able to benefit, at least on paper, from the Fed’s asset inflation strategy. I have been able to refinance my debt at attractive rates, and seen asset prices (but not necessarily values) climb. But others, especially workers (who derive the bulk of their income from salary instead of capital appreciation) and savers (retirees living on a fixed income), have lost under this post-recession scheme.

Workers lost because their spending power diluted drastically over the past ten years. The costs of housing and energy have continued to rise in areas where the highest concentrations of jobs are located. For example, a young college graduate who wants to earn a high salary in the tech industry has to live in Silicon Valley, where even a base salary of $100,000 won’t enable them to afford to purchase a home there. Home prices are so out of line with average salaries that cities like San Francisco and Los Angeles are seeing an epidemic of homelessness never experienced since the Great Depression of 1929.