Inequality in the U.S. today is near its historical highs, largely because the Federal Reserve’s policies have succeeded in achieving their aim: namely, higher asset prices (especially the prices of stocks, bonds and high-end real estate), which are generally owned by taxpayers in the upper-income brackets. The Fed is doing all the work, because the President’s policies are growth-suppressive. In the absence of the Fed’s moneyprinting and ZIRP, the economy would either be softer or actually in a new recession.
The greatest irony is that the President is railing against inequality as one of the most important problems of the day, despite the fact that his policies are squeezing the middle class and causing the Fed – with the President’s encouragement – to engage in the radical monetary policy, which is exacerbating inequality. This simple truth cannot be repeated often enough.
Wednesday, August 06, 2014
Deciphering Zero's "recovery"
One can read the 696 page neo-Marxist tomes "explaining" inequality in a way only an economist could - by ignoring the untold destruction economists themselves have unleashed on society with their "scientific theories" or one can read the following 139 words by Paul Singer which in two short paragraphs explains everything one needs to know about America's record class inequality, including precisely who is the man responsible: