The Uncomfortable Truth About Why Fighting Inflation Widens the Wealth Gap

The Short Answer

Fighting inflation widens the wealth gap because the primary tool used by central banks raising interest rates is structurally asymmetric. While higher rates are designed to cool the economy, they suppress wage growth and increase borrowing costs for the working class long before they meaningfully impact the capital of the wealthy.

In a tightening cycle, asset owners (the top 10%) can leverage cash reserves to buy deflated assets, while wage earners (the bottom 90%) face higher rents, credit card interest, and job insecurity. This creates a "recovery lag" where labor loses bargaining power and capital captures the next growth cycle's gains. Ultimately, monetary tightening protects the value of existing "old money" at the expense of "new income" and upward mobility.

How Central Banks Actually Fight Inflation

When Jerome Powell or Christine Lagarde stand at a podium and speak about "price stability," they are using a polite euphemism for demand destruction.

The conventional economic wisdom, rooted in the teachings of Milton Friedman, suggests that inflation is "always and everywhere a monetary phenomenon." To fix it, central banks like the Federal Reserve or the ECB use Quantitative Tightening (QT) and interest rate hikes to suck liquidity out of the system.

The goal is to make borrowing more expensive. When it costs more to finance a car, a house, or a business expansion, spending slows down. In theory, this forces companies to stop raising prices because consumers can no longer afford them. But this "textbook" explanation ignores a glaring reality: The pain of this cooling process is not distributed equally.

Why Rate Hikes Are Structurally Asymmetric

Most people view interest rates as a universal "price of money." In reality, they are a filter that separates those who live off labor from those who live off capital.

Asset Owners vs. Wage Earners

If you own a portfolio of stocks and several rental properties, a rate hike is a temporary valuation adjustment. Yes, your portfolio might dip by 15% in the short term, but you still own the underlying shares. You have the "staying power" to wait for the next cycle.

However, if your primary source of wealth is a paycheck, a rate hike is an immediate threat. Higher rates aim to "soften" the labor market a clinical way of saying they want higher unemployment to stop wage inflation. For the worker, the fight against inflation feels like a direct attack on their only leverage: the ability to ask for a raise.

The Credit Contraction Effect

The wealthy rarely "need" credit to survive; they use it to amplify gains. The working class uses credit to bridge the gap between stagnant wages and the rising cost of living.

• The Rich: Can pivot to high-yield bonds or money market funds, earning 5% safely on their cash.
• The Poor/Middle Class: See their credit card APR climb to 25% and their dream of homeownership evaporate as mortgage rates double.

Small Business vs. Corporate Capital

Large corporations like Apple or Amazon have "fortress balance sheets." They often hold massive cash reserves or have locked in long-term debt at 2% interest years ago. They are largely immune to rate hikes in the short term.

In contrast, the local hardware store or the tech startup relies on rolling lines of credit. When rates rise, these small engines of the economy stall. This allows massive corporations to swallow market share from smaller competitors who couldn't survive the cost of capital spike.

The Monetary Transmission Inequality Framework™

To understand how this happens every single time, we have to look at the four layers of how monetary policy actually moves through society.

Layer	Mechanism	Impact on Wealth Gap
1. Capital Layer	Asset Repricing	The wealthy buy the "dip" while others are forced to sell.
2. Credit Layer	Lending Contraction	Banks tighten standards; only the "already wealthy" get loans.
3. Labor Layer	Wage Suppression	Hiring freezes reduce worker bargaining power and income.
4. Time Horizon	Liquidity Survival	Wealth allows for long-term holding; poverty forces short-term losses.

The Systemic Glitch: While the Capital Layer eventually recovers (and usually exceeds) its previous highs, the Labor Layer often experiences permanent "scarring." Lost wages during a tightening cycle are rarely "made up" later.

Historical Evidence: 2008 and the 2022–2024 Cycle

We don't have to guess how this works; we've seen the movie before.

The 2008 Financial Crisis

Following the crash, central banks used Quantitative Easing (QE) to flood the market with liquidity. This caused a massive rally in asset prices (stocks and real estate). Because the top 10% own nearly 90% of the stock market, they saw their net worth skyrocket while real wages for the average worker remained flat for a decade.

The 2022-2024 Hikes

When inflation spiked post-COVID, the Fed hiked rates at the fastest pace in forty years. The result?

• Housing: Mortgage rates hit 7%+, locking out first-time buyers.
• Rent: Institutional investors (BlackRock, etc.) used their cash to buy single-family homes, turning potential homeowners into permanent renters.
• Corporate Profits: Despite "inflation," corporate profit margins hit record highs.

The "fight" against inflation effectively protected the purchasing power of the dollar for those who already had millions of them, while making it harder for everyone else to acquire their first thousand.

Who Benefits From Higher Interest Rates?

It is a myth that "everyone loses" when rates go up. There are clear winners in a high-rate environment:

1. Financial Institutions: Banks earn a wider "net interest margin" (the difference between what they pay you on savings and what they charge on loans).
2. The "Cash Rich": If you have $10 million in cash, 5% interest gives you $500,000 a year in risk-free income. You are literally being paid to sit still.
3. Hedge Funds and Private Equity: They wait for smaller companies to go bankrupt during the "credit crunch" so they can buy their assets for pennies on the dollar.

Counterarguments: Where the Textbooks Are Right

To be fair, hyperinflation is even worse for inequality than rate hikes. If the price of bread doubles every week, the poor who spend 100% of their income on essentials—face literal starvation.

The central bank's defense is that they are choosing the "lesser of two evils." They argue that by causing a small recession now, they prevent a total currency collapse later.

The Flaw in the Defense: Central banks often ignore "supply-side" inflation. If inflation is caused by a war in Europe or a microchip shortage, raising interest rates in America doesn't fix the supply chain. It just punishes the consumer until they stop buying things. This is like trying to fix a broken car engine by deflating the tires.

What This Means for You (2026 and Beyond)

As we move further into 2026, the "higher for longer" narrative has shifted the goalposts of the middle class. We are entering an era of "Financial Feudalism," where the ability to own property or start a business is dictated by your existing access to capital, not your talent or work ethic.

If You are a Worker:

Recognize that the "system" is currently optimized to keep your wages from outpacing inflation. Your best hedge isn't a savings account; it's specialized skills that remain in demand even during a credit contraction.

If You are an Investor:

Understand the Cantillon Effect the idea that those closest to the source of money (banks and major corporations) benefit first. Position yourself in assets that the government and central banks are incentivized to protect (infrastructure, essential tech, and scarce commodities).

FAQ:

Does raising interest rates hurt the poor more than the rich?

Yes. Lower-income households rely more on wage income and variable-interest debt (credit cards/payday loans). Rate hikes intentionally slow hiring to lower wages and increase borrowing costs. Meanwhile, the wealthy own assets that eventually rebound and have the cash reserves to avoid high-interest debt.

Who benefits most from higher interest rates?

The primary beneficiaries are banks, large-scale lenders, and wealthy individuals with significant cash reserves. These groups earn higher yields on their capital without the risk of labor or production. In a high-rate environment, "money makes money" more efficiently than "work makes money."

Are central banks making inequality worse?

Many leading economists, including Joseph Stiglitz, argue that modern monetary policy is a blunt instrument that exacerbates the wealth gap. By focusing solely on "inflation targeting" through rates, central banks ignore the distributional consequences of their actions, often bailing out the financial sector while letting the labor market "adjust."

Why do markets often rally when the Fed hints at pausing rate hikes?

Because markets (capital owners) are forward-looking. A pause in hikes suggests that the "Labor Layer" has been sufficiently suppressed and the next cycle of "easy money" is coming. The wealthy buy in early, capturing the gains before the average worker even feels the "recovery."

Is there an alternative to raising rates?

Yes, but they are politically difficult. Fiscal policy (taxing excess corporate profits or implementing targeted price controls) could cool inflation without crushing the labor market. However, central banks only have one tool the interest rate so they use it, regardless of the collateral damage to the wealth gap.

Summary Table: The Winners and Losers of Inflation Fighting

Feature	The Winners (Asset Owners)	The Losers (Wage Earners)
Income Source	Dividends, Interest, Rents	Hourly wages, Salaries
Debt Profile	Fixed-rate, long-term corporate debt	Variable-rate, consumer debt
Reaction to Hikes	Buy the dip with cash reserves	Cut spending, face job insecurity
Long-term Result	Increased ownership of the economy	Reduced purchasing power and savings

The Path Forward: Breaking the Cycle

The uncomfortable truth is that our current monetary system requires a "sacrificial lamb" to maintain the value of the currency. Historically, that lamb is the worker's paycheck.

To change this, we must move beyond the narrow view that inflation is just "too much money chasing too few goods." We have to ask: Who has the money, and who has the goods? Until monetary policy accounts for the transmission inequality, every "victory" over inflation will be a quiet defeat for the dream of a fair economy.

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Last Updated: March 2026

Author: Strategic Macro Audit Team

Data Sources: Federal Reserve Economic Data (FRED), Bank for International Settlements (BIS), Thomas Piketty’s Capital in the Twenty-First Century updates.

How Quantitative Tightening Affects Monetary Distribution in Advanced Economies (2026)

The era of "easy money" didn't just end; it inverted. As we navigate 2026, the global financial landscape is grappling with the hangover of a decade-long liquidity binge. While Quantitative Easing (QE) was the tide that lifted all boats, Quantitative Tightening (QT) is proving to be the drain that reveals who has been swimming naked and who owns the drain itself.

For years, the narrative around central bank balance sheet reduction was clinical, almost boring. Policymakers described it as "watching paint dry." But for those managing portfolios, running regional banks, or trying to enter the housing market, QT has been anything but dull. It is a violent recalibration of who holds the chips in the global economy.

QT Explained in One Minute

At its simplest, Quantitative Tightening is the process by which central banks (like the Fed, ECB, or BoE) reduce the size of their balance sheets. They do this by either selling their government bonds and mortgage-backed securities or, more commonly, letting them "run off" (mature) without reinvesting the proceeds.

When a bond matures and the central bank doesn't replace it, money is effectively deleted from the banking system. This shrinks bank reserves the digital cash commercial banks hold at the central bank.

The 2026 Reality Check: Unlike the 2018–2019 attempt, the current QT cycle is occurring alongside higher structural inflation and shifting geopolitical alliances. This makes the "neutrality" of liquidity withdrawal a myth.

Why QT Is a Redistribution Mechanism

The most dangerous misconception in macroeconomics is that monetary policy is a "rising tide" or a "falling floor" that affects everyone equally. It doesn't.

QT is a redistribution mechanism because liquidity does not exit the system uniformly. It retreats from the periphery first. Think of it as a lake drying up: the shallow areas (small banks, retail credit, emerging markets) turn into cracked earth while the deep center (systemically important financial institutions and cash-rich corporations) remains submerged in capital.

The Power Shift: From Leveraged to Liquid

In the QE era, "leverage" was the cheat code for wealth. In the QT era, "cash-rich" is the new aristocracy. As the central bank pulls liquidity out, the cost of remaining liquid goes up. Entities that rely on constant refinancing such as "zombie" companies or highly leveraged real estate investors see their margins incinerated by rising interest expenses and disappearing credit lines.

The Liquidity Redistribution Ladder (LRL Framework)

To understand how QT filters through the economy, we’ve developed the LRL Framework. This 5-step hierarchy explains the transmission of pain and the shift of power.

Layer	Impact Zone	Primary Effect
1. Reserves Drain	Tier-1 Banking System	Compression of "excess" liquidity; higher interbank rates.
2. Collateral Scarcity	Repo & Funding Markets	High-quality collateral (Treasuries) becomes more expensive to borrow.
3. Duration Repricing	Bond Markets	Long-term yields rise; "Term Premium" returns to the market.
4. Asset Valuation	Equities & Housing	P/E ratios compress; housing markets freeze due to rate sensitivity.
5. Real Economy	Households & SMEs	Credit availability vanishes for the "unbanked" or "under-collateralized."

1. The Reserves Drain Layer

The first casualty of QT is the bank reserve. When the Fed shrinks its balance sheet, it essentially forces commercial banks to trade their "risk-free" reserves for the bonds the Fed no longer wants to hold. For a giant like JPMorgan, this is a balance sheet shuffle. For a regional bank in Ohio or a mid-sized lender in Italy, this is a tightening of the noose.

2. The Collateral Scarcity Layer

In a digital economy, collateral is the ghost in the machine. QT changes the velocity of collateral. When the central bank stops hoarding bonds, you might think collateral becomes more available. However, the volatility induced by QT often makes lenders more "haircut-heavy," demanding more collateral for the same amount of credit.

3. The Duration Repricing Layer

For a decade, the "term premium" the extra yield investors demand for holding long-term debt was non-existent or negative. QT has forced the market to rediscover duration risk. This repricing hits pension funds and insurance companies hard, forcing them to rebalance away from riskier assets to cover their long-term liabilities.

Banking System Transmission: The Small Bank Squeeze

Why did we see regional banking flares in 2023, and why do they persist in 2026?

QT creates a "liquidity vacuum" that favors scale. Large, systemically important banks (G-SIBs) have diversified deposit bases and direct lines to central bank standing facilities. Smaller banks, however, often see their deposits flee toward higher-yielding money market funds or safer "Too Big to Fail" institutions.

When the Fed drains reserves, smaller banks must compete harder for funding. This raises their "cost of funds," narrowing their net interest margins. In short: QT is a consolidation event for the banking sector.

Inequality & Wealth Effects: The K-Shaped Unwind

The most politically sensitive aspect of QT is its impact on wealth inequality.

The Asset Inflation Unwind

QE was criticized for fueling a "wealth effect" that benefited the top 1% who owned the majority of stocks and real estate. Logic would suggest QT should reverse this and reduce inequality. But the reality is more complex.

·         The Wealthy: While their portfolios may take a nominal hit, they often hold high cash balances or "short-duration" assets that benefit from higher interest rates.

·         The Working Class: They don't own much in the way of stocks, but they are highly sensitive to credit transmission. When QT causes banks to tighten lending standards, the person trying to buy a used car or fund a small business is the first to be denied.

"QT is deflationary for the middle class's access to credit, but often 'yield-positive' for the ultra-wealthy's dormant capital."

Real Economy Spillovers: The Credit Channel

As we move into the latter half of 2026, the "Real Economy Layer" of the LRL Framework is where the most friction occurs. We are seeing a "Credit Credit Divergence."

1.    Blue-Chip Paradox: Large corporations with massive cash piles are actually earning more interest income than they are paying on their long-term, low-rate debt locked in during 2021.

2.    SME Stagnation: Small and medium-sized enterprises (SMEs) rely on floating-rate bank loans. For them, QT has resulted in a doubling or tripling of interest costs, leading to a "hiring freeze" that aggregate employment data often misses until it's too late.

Case Studies: US vs. Eurozone vs. UK

The United States (The Federal Reserve)

The Fed has been the most aggressive in its "passive" QT. However, the use of the Reverse Repo Facility (RRP) acted as a buffer, slowing the drain of actual bank reserves. By 2026, that buffer is gone, and the Fed is now walking a tightrope between fighting inflation and preventing a repo market spike.

The Eurozone (ECB)

The ECB faces a "fragmentation" risk. When the ECB shrinks its balance sheet, liquidity doesn't leave Germany and Italy at the same rate. This has forced the creation of the TPI (Transmission Protection Instrument) essentially a "QE for the periphery" hidden inside a QT program for the core.

The United Kingdom (Bank of England)

The UK has been the "canary in the coal mine." Their experience with the LDI (Liability-Driven Investment) crisis showed how quickly QT-induced bond volatility can threaten the entire pension system.

Investor & Policy Implications for 2026

If you are an investor or a policy watcher, the "new normal" of 2026 requires a total pivot in strategy.

·         Cash is a Strategic Asset: no longer has “trash,” cash provided the optionality to buy distressed assets as the LRL Framework moves into the Valuation Layer.

·         The End of "Buy the Dip": During QE, every dip was a liquidity-fueled buying opportunity. In QT, dips can become "falling knives" because the central bank "put" is much further out of the money.

·         Focus on Free Cash Flow: Companies that can self-fund are the only safe havens when the credit transmission channel is clogged.

2030 Outlook: Will We Ever Return to "Normal"?

The great irony of Quantitative Tightening is that it often sows the seeds for the next round of Quantitative Easing. As liquidity reaches "scarcity" levels, the risk of a systemic break increases.

By 2030, we expect central banks to move toward a "Permanently Large Balance Sheet" model. They have realized that the financial system is now so addicted to central bank reserves that a full return to the pre-2008 "corridor system" is likely impossible without a total economic collapse.

FAQ: Understanding the Friction

Does QT increase inequality?

Yes, but not in the way most expect. While it can lower the nominal value of billionaire portfolios, it disproportionately harms the bottom 60% by restricting access to affordable credit and increasing the cost of basic financing (cars, homes, small business loans).

Who benefits most from QT?

"Liquidity Providers." This includes large-cap banks, private credit funds with "dry powder," and cash-heavy institutional investors who can capture higher yields without the need for leverage.

Why does QT hit small banks harder?

Smaller banks lack the diversified deposit bases of giants. As reserves shrink, they must pay higher rates to keep depositors from moving to Money Market Funds, which compresses their ability to lend profitably.

Is QT the main cause of 2026 market volatility?

It is the "underlying condition." While geopolitical events or earnings reports provide the sparks, the lack of excess liquidity (the "buffer") is what allows those sparks to turn into market-wide fires.

The Verdict: A World of Winners and Losers

Quantitative Tightening is not a neutral policy tool. It is a surgical redistribution of financial power. It rewards the disciplined, the liquid, and the large, while punishing the leveraged, the visionary-but-unprofitable, and the credit-dependent.

As we move forward, the "macro-literate" will be the ones who survive. Understanding the Liquidity Redistribution Ladder isn't just an academic exercise it's a survival guide for a world where money is finally "expensive" again.

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Central Bank Policies and Their Role in Reducing Income Inequality by 2030

Can a central bank an institution traditionally obsessed with "price stability" actually fix the wealth gap? By 2030, the answer will no longer be a matter of academic debate; it will be a matter of social survival. For decades, the "neutrality" of central banks was a convenient shield. But as the dust settles on the post-pandemic era, a harsh reality has emerged: monetary policy is one of the most potent drivers of wealth redistribution in human history.

Through mechanisms like Quantitative Easing (QE) and interest rate cycles, central banks have inadvertently inflated the assets of the wealthy while eroding the purchasing power of the working class. However, a pivot is occurring. From "Inclusive Monetary Policy" to green credit steering, the roadmap to 2030 suggests that central banks can and must play a role in narrowing the divide.

Why This Matters Now

Central bank policies influence income inequality through four primary channels: Asset Inflation, Labor Market Slack, Credit Allocation, and Inflation Expectations. Historically, unconventional policies like QE widened the gap by boosting stock and real estate prices. To reduce inequality by 2030, institutions like the Federal Reserve and ECB are exploring "Targeted Transmission," ensuring liquidity reaches SMEs and households rather than just financial markets.

Why Monetary Policy Became a Distribution Tool

For the better part of the 20th century, central bankers lived by a simple creed: manage inflation, and the rest will follow. This was the era of the "Dual Mandate" (price stability and maximum employment).

But the 2008 financial crisis changed everything. When interest rates hit the "Zero Lower Bound," central banks turned to the printing press. This injected trillions into the financial system, but it didn't flow to Main Street. It flowed into assets. If you owned a portfolio of tech stocks or a multi-city real estate empire, the 2010s were a golden age. If you relied on a wage, you were running up a down-escalator.

By 2026, the skepticism has reached a boiling point. We now recognize that "neutral" policy is a myth. Every basis point hike and every billion dollars of Quantitative Tightening (QT) shifts wealth from one group to another.

The Monetary Inequality Transmission Matrix (MITM™)

To understand how we get to a more equitable 2030, we must first map how policy actually "touches" your bank account. We call this the Monetary Inequality TransmissionMatrix (MITM™).

1. The Asset Inflation Channel

This is the most direct driver of wealth inequality. When a central bank buys bonds (QE), it lowers yields and pushes investors into riskier assets like equities and real estate.

·         The Winner: The top 10% who own 90% of stocks.

·         The Loser: The renter who sees their dream of homeownership move another decade out of reach.

2. The Labor Slack Channel

Interest rates are the "thermostat" of the job market. When central banks keep rates low to achieve "maximum employment," they increase the bargaining power of workers. In a tight labor market, firms must compete for talent, leading to real wage growth at the bottom of the income distribution.

·         The 2030 Shift: Central banks are beginning to prioritize "broad-based and inclusive" employment over preemptive inflation strikes.

3. The Credit Allocation Channel

Who gets the money first? Usually, it’s large corporations and Tier-1 financial institutions. By the time that liquidity trickles down to a local baker or a tech startup in an emerging market, the "inflationary tax" has already kicked in.

·         The Goal: Moving toward "Tiered Interest Rates" that reward banks for lending to productive, wage-growing sectors.

4. The Expectations Channel

Inflation is a regressive tax. High-net-worth individuals have the tools to hedge against inflation (gold, Bitcoin, real estate). The working class, holding cash or fixed wages, loses parity. Central bank credibility in managing expectations is, therefore, a fundamental tool for protecting the poor.

Case Studies: A Tale of Two Strategies

The Federal Reserve’s "Inclusive" Pivot

Following the 2020 framework review, the Fed shifted toward a "shortfall" approach to employment. By allowing the economy to "run hot," they enabled record-low unemployment for minority groups. However, the subsequent inflation of 2022-2024 proved that without fiscal coordination, monetary stimulus can become a double-edged sword.

The ECB’s Green Credit Experiment

Isabel Schnabel and other ECB leaders have hinted at a future where the central bank doesn't just buy any bonds, but specifically targets green and social bonds. By lowering the cost of capital for "equality-positive" projects, the ECB is moving from a neutral observer to an active architect of the 2030 economy.

Policy Innovations to Reduce Inequality by 2030

If we want to see a Gini coefficient reduction by the end of the decade, the "old playbook" must be shredded. Here are the three pillars of the 2030 Policy Revolution:

I. Central Bank Digital Currencies (CBDCs) for Direct Transfers

Imagine a world where "Helicopter Money" isn't a theory but a surgical tool. A CBDC would allow the central bank to bypass the "clogged pipes" of commercial banks and deposit liquidity directly into the accounts of low-income households during a crisis. This eliminates the Credit Allocation Channel bias.

II. Dual Interest Rates

As proposed by various progressive economists, central banks could offer a "discount rate" to commercial banks specifically for loans made to affordable housing or small businesses, while keeping higher rates for speculative financial lending.

III. Macroprudential Wealth Caps

While controversial, some researchers suggest that central banks should use their regulatory power to limit "asset bubbles" before they start. By imposing higher capital requirements on speculative real estate loans, they can keep housing prices tethered to local wages.

Scenario Analysis: The Road to 2030

Feature	Scenario A: "The Great Divergence"	Scenario B: "The Inclusive Reset"
Monetary Stance	Focus on pure CPI targeting.	Focus on "Real Wage" stability.
Tool Choice	Traditional Rate Hikes/Cuts.	CBDC + Targeted Credit Steering.
Inequality Outcome	Top 1% share grows via AI-driven asset gains.	Labor share of income stabilizes or rises.
Social Stability	High volatility; populist backlash.	Moderate growth; high social cohesion.

Risks, Trade-offs, and the "Independence" Trap

Critics argue that if a central bank starts worrying about inequality, it loses its focus on inflation. This is the "Mission Creep" argument. If the Fed or the BoE becomes a social engineering tool, do they lose the market's trust?

The counter-argument is simple: An unstable society cannot have a stable currency. If inequality reaches a breaking point, the political pressure on central banks will become so great that their independence will be stripped away anyway. Addressing distribution is not "charity"; it is "systemic risk management."

FAQ: Navigating the New Monetary Reality

Do central banks increase inequality?

Involuntarily, yes. Through "The Wealth Effect," policies like QE increase the value of assets held by the rich far more than they increase the wages of the poor. However, they also prevent total economic collapses which would arguably hurt the poor most.

How can interest rate hikes help the poor?

While hikes can slow the economy, they also crush inflation which is essentially a "tax" on those who spend most of their income on essentials. If hikes stabilize the cost of living, they protect the purchasing power of the lower class.

What is "Inclusive Monetary Policy"?

It is a framework where a central bank considers distributional outcomes (like the unemployment rate of specific demographic groups or wealth concentration) alongside traditional inflation targets.

Will CBDCs reduce the wealth gap?

Potentially. By providing the unbanked with access to digital payments and allowing for "targeted stimulus," CBDCs could democratize financial access in a way that traditional banking has failed to do.

The Verdict: A New Mandate for a New Decade

By 2030, the success of a central bank will not be measured solely by whether inflation is at 2%. It will be measured by whether the financial system it oversees serves the many or the few. The tools for an equitable future exist CBDCs, tiered rates, and inclusive mandates but the political will to deploy them is the final hurdle.

The "invisible hand" of the market has a heavy thumb on the scale. It’s time for the "visible hand" of policy to even it out.

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