Thread by @StephenPunwasi

Watching governments set the precedent they'll work to prevent recessionary downturns is an interesting development for wealth inequality.

It actually makes rich people *much* richer, and the gap even wider. It doesn't work for a long time though.

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2/ Recessions serve a very useful purpose in capitalism's boom bust cycle. Inefficient purchases, people that overpaid, lose that speculative premium.

They suffer losses, and people with lower income get the opportunity to buy into an asset at depressed values.

3/ If you backstop losses, it makes inefficient purchases no longer subject to purges. Instead, lower income people no longer have an opportunity to buy in at a "deal."

The price only goes up. They're doing it with tax dollars too, meaning everyone also pays for the gap.

4/ Now, some people think recessions impact poor people, but it's not as much as it's pitched. A credit executive once said it best, "lower income people are always in a recession."

Precarious employment, difficulty paying bills – that's how they live. Nothing changed.

5/ Middle class people getting a taste of what it's like being poor is when society thinks there's a problem.

So wealthy people pretend flooding the market with credit helps poor folks, but it's only because they don't want to take a loss on the rents, or stocks.

6/ Its works, unit it doesn't. The wealth gap eventually turns into populism.

If it's left-wing populism, you get very high taxes and a poor environment to start business.

If it's right-wing populism, you get fascists looting the state, convincing you of invisible bad guys.