Monday, August 05, 2013

Leading Left-Liberal Admit Monetary Inflation Increases Inequality

Robert Reich accusses Republicans of wanting job growth to be weak, and brings up several alleged motives for this desire. The most interesting alleged motive is this:

Second, high unemployment fuels the bull market on Wall Street. That’s because the Fed is committed to buying long-term bonds as long as unemployment remains high. This keeps bond yields low and pushes investors into equities — which helps boosts executive pay and Wall Street commissions, thereby keeping regressives’ financial sponsors happy. 
Ignoring for a moment the fact that several leading Republicans, not just Ron and Rand Paul, have criticized the very quantitative easing that Reich claims they want to preserve, it is interesting to see how he here admits that it makes Wall Street fat cats richer. If he is truly serious about wanting to reduce inequality, he should stop endorsing inflationary policies.


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