'Dirty little secret': Rand Paul reveals how the 'very wealthy' got even richer through rampant US inflation — how to piggyback off their tactics even with your 'dollar being eroded'

“The workers are for us because their wealth is being eroded, their dollar’s being eroded … They can't afford the trips they want to take.” he said in an interview with Fox Business, referencing auto workers on the assembly line.

Contrastingly, the wealthy experience a vastly different outcome, according to Paul, who was on the show “Kudlow” to discuss government spending and how it relates to the national debt and inflation.

“The rich have gotten richer, but that's the dirty little secret of inflation,” he pointed out. “People get the money first, invest it, make money off their investments. The people it trickles down to get more money, but then the prices have risen to match their increased wages.”

Divergent destinies

During the interview, Paul noted that “the very wealthy have gotten wealthier.”

He isn't alone in noticing this trend, which has captured widespread attention. In January, the non-profit Oxfam reported that the world’s billionaires have become $3.3 trillion wealthier than they were in 2020, with their wealth increasing at a rate three times faster than that of inflation.

The report painted a starkly different picture for the working class, noting that individuals are working harder and longer hours. Yet, they struggle to match the pace of inflation. It stated, “The wages of nearly 800 million workers have failed to keep up with inflation and they have lost $1.5 trillion over the last two years, equivalent to nearly a month (25 days) of lost wages for each worker.”

The reality is, billionaires have been able to grow their wealth faster than the pace of inflation through a combination of assets and strategic investments.

Here’s a look at two particularly notable examples.

Equities

Billionaires strategically utilize stocks and equities as a key component of their investment portfolios. For some of the most famous billionaires, a substantial portion of their wealth is linked to the companies they founded or currently manage.

Companies have the ability to increase prices for their products or services in response to inflation. As inflation drives up costs, businesses that can successfully pass these costs onto consumers through higher prices can maintain or even grow their profit margins. This, in turn, can lead to increased earnings and potentially higher stock prices.

The Oxfam report highlighted how large firms were making oversized profits during inflationary times, noting, “148 of the world’s biggest corporations together raked in $1.8 trillion in total net profits in the year to June 2023, a 52% jump compared to average net profits in 2018-2021.”

While stocks are also volatile, the market as a whole has performed remarkably well during the current inflationary period. The S&P 500, for instance, has seen an 83% increase over five years.