I'm starting to wonder if the Federal Reserve is no longer an effective tool for job creation.
After years of propping up the economy and expanding the supply of money, we have very little to show for it on "main street." We have booming real-estate prices in some cities, a growing stock market, and lots of cheap money flowing into the hands of the wealthy -- but most regular folks have been completely shut out of this recovery.
Imagine if in 2009, instead of using the traditional means to expand monetary supply, we just started sending checks to all citizens. It seems we're still waiting for the trickle down effect to kick in from the Fed's stimulus. Why are we waiting for banks to lend and businesses to hire? If the goal is to prime the economic pump with an influx of new money, put that money in the hands of people who will actually go out and buy something.
After years of propping up the economy and expanding the supply of money, we have very little to show for it on "main street." We have booming real-estate prices in some cities, a growing stock market, and lots of cheap money flowing into the hands of the wealthy -- but most regular folks have been completely shut out of this recovery.
Imagine if in 2009, instead of using the traditional means to expand monetary supply, we just started sending checks to all citizens. It seems we're still waiting for the trickle down effect to kick in from the Fed's stimulus. Why are we waiting for banks to lend and businesses to hire? If the goal is to prime the economic pump with an influx of new money, put that money in the hands of people who will actually go out and buy something.