Civil Unrest
Cullen-
You have frequently touched on how income inequality is being exacerbated by QE. Allow the credit-worthy to continuously re-lever and then pitch trickle down economics to justify why these actions are for the greater good.
Might this play into the civil unrest we are seeing across the country?
As Chris Rock said, “If OJ Simpson was poor, he would be Orenthal the bus driving murderer”.
The legal and criminal justice system cares more about the size of your pocketbook than the color of your skin. It seems like all aspects of government operate this same way. It is called “lobbying” aka Corruption.
Your argument has been that the Fed is just maximizing the use of the limited tools it has because CONGRESS hasn’t done nearly enough.
Maybe the lesson in all of this is that it was Congress’s job to identify the solutions to these social and economic problems. The Fed covering up only enables Congress to continue to behave in a corrupt manner and fall short of its duties.
Hi @CLARENCEBEEKS,
I tend to think that the idea that the Fed created income inequality is exaggerated. The more important point is the existing tax laws and fiscal policy. For instance, I regularly talk about how secondary markets get very favorable tax treatment that makes no operational sense. This is a direct handout to the wealthy asset owners in the country.
But yes, your conclusion is exactly right. It is on Congress to identify the cause of this issue and try to resolve it because it is directly contributing to all the civil unrest we're seeing. Unfortunately, we seem to keep implementing forms of trickle down economics instead.