by Summary:
Quantitative easing is often hailed as a necessary tool for economic recovery. But let’s take a closer look. It’s like giving a lifeline to a drowning swimmer while ignoring the fact that he’s swimming in a pool of sharks. The wealthy, who own the majority of shares, are the ones benefiting from rising stock prices. Meanwhile, the average person is left treading water, gasping for air. This isn’t just a minor inconvenience; it’s a widening chasm of inequality. The data shows that the top 10% of Americans own 84% of all stocks. That’s a staggering statistic. When the Federal Reserve injects money into the economy, it primarily flows to those who already have wealth. The average American, who may own a few shares or none at all, sees little to no benefit. This isn’t just
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Steve Keen considers the following as important:
This could be interesting, too:
Quantitative easing is often hailed as a necessary tool for economic recovery. But let’s take a closer look. It’s like giving a lifeline to a drowning swimmer while ignoring the fact that he’s swimming in a pool of sharks. The wealthy, who own the majority of shares, are the ones benefiting from rising stock prices. Meanwhile, the average person is left treading water, gasping for air. This isn’t just a minor inconvenience; it’s a widening chasm of inequality. The data shows that the top 10% of Americans own 84% of all stocks. That’s a staggering statistic. When the Federal Reserve injects money into the economy, it primarily flows to those who already have wealth. The average American, who may own a few shares or none at all, sees little to no benefit. This isn’t just
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
Mike Norman writes The 20 EMU Member States are not currency issuers in the MMT sense — Bill Mitchell
Mike Norman writes (II) Xu Gao’s case for Beijing to spend — Yuxuan JIA and BU, Xiaoqing
John Quiggin writes We or They
John Quiggin writes Monday Message Board
| Quantitative easing is often hailed as a necessary tool for economic recovery. But let’s take a closer look. It’s like giving a lifeline to a drowning swimmer while ignoring the fact that he’s swimming in a pool of sharks. The wealthy, who own the majority of shares, are the ones benefiting from rising stock prices. Meanwhile, the average person is left treading water, gasping for air. This isn’t just a minor inconvenience; it’s a widening chasm of inequality. The data shows that the top 10% of Americans own 84% of all stocks. That’s a staggering statistic. When the Federal Reserve injects money into the economy, it primarily flows to those who already have wealth. The average American, who may own a few shares or none at all, sees little to no benefit. This isn’t just an economic issue; it’s a social one. The divide is deepening, not bridging. Imagine a game where only a few players have the best cards. The rest are left with nothing but scraps. This is the reality of quantitative easing. It’s a policy that favors the few while neglecting the many. And when the next economic downturn hits, guess who will be left holding the bag? The same average Americans who were already struggling. The cycle continues, and the sharks keep circling. We need to rethink our approach. Instead of propping up the wealthy, we should focus on creating a more equitable system. A system where everyone has a chance to thrive, not just survive. Because in the end, a healthy economy is one where everyone can swim, not just the sharks. |
Of course. When interest rates are at zero, and those, who should borrow and invest into production don't borrow, how do you want to reach them and make them change their mind, when you give money to those, who do hoard it?