QE2 Disproportionately Benefits The Rich

This is an extremely crude exercise, but it makes the point.  Here is a table showing how much money each of six hypothetical investors made today off the QE2 inspired rally in the S&P 500.  Just for argument's sake, I assumed each investor's capital was invested entirely in the SPY (a proxy for the S&P 500) and that today's gain was exactly 2% (it was actually 1.94%).  As you can see, a 2% gain for someone with a $10,000 portfolio is an awful lot less than a 2% gain for someone with a $10,000,000 portfolio.  I've also added a crude graph to show the exponential nature of these relationships.  Is it any wonder there's income inequality in America when the government is essentially giving away vast sums of money to people who are already unbelievably rich?

For a much more in-depth look at the relationship between Fed-driven asset inflation and income inequality in America, please see my previous post here.