Federal Reserve policies to ease interest rates and purchasing securities (via QE) have the effect of inflating asset prices.

Wealthy people are often paid with assets (executive stock/option grants), work in asset-managing businesses (hedge funds/PE), and/or hold more assets than the poor (business owners).

In my view, the Federal Reserve is mainly responsible for exploding income, not that technology doesn't play some role as well - but, if it wasn't for exploding asset values, VCs would not be as desperate to invest in crazy money-losing ideas to automate XYZ (causing unemployment elsewhere) that they can sell to a bigger fish.

(Interested to know if the Fed is a disputed explanation.)

It seems strange to me that we have such a simple root cause but complicated ideas for how to stop it, other than curtailing the Federal Reserve.