Hanlon’s razor admonishes us to, “Never attribute to malice that which is adequately explained by stupidity.” The Federal Reserve’s monetary policy is promoting income inequality as our table above illustrates, but I do not believe that the Fed’s action are malevolent.
Standard monetary procedure in the U.S. has been to loosen the money supply in the wake of a recession. The Fed went to this well one too many times and was forced to embark upon its novel money printing experiment. Today, it is stuck. Surely some Fed officials have figured out that their actions are making the rich richer and the poor poorer, but the present policy cannot be terminated. Even discussing the end of the program causes market distress.
Once money printing begins it must continue until either the printing or the lack thereof causes a crisis. As we…
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