Fed Governor spins more propaganda as Brainard blames income inequality over bank’s policies for declining growth
Perhaps it should come as no surprise that an individual who grew up in a Communist environment, and later became a favorite of the Obama administration, would blame income equality as the primary reason why the economy has not recovered much over the past decade.¬† But this is exactly what Lael Brainard, a member of the Federal Reserve Board of Governors, preached in a report on the current state of the economy.
In her report, Brainard emphasized both income and employment inequality as the reasons behind the stagnation of economic growth, but kept quiet about blaming the real instigator (Federal Reserve) who’s monetary policies have been the primary catalyst behind the expansion of wealth inequality.
(As you can see on the chart, wealth disparity began to skyrocket in 2011 when the Fed began their Quantitative Easing programs)
In her recent report, the Federal Reserve Governor addressed income inequality and perpetuated race-divisive narratives in line with the radical left’s political agenda, which looks like a farewell message from the outgoing Fed team, which was marked by the ‚Äėquantitative easing‚Äô that failed America.
US economic growth has been hampered by¬†the significant wealth and income inequality among¬†the nation’s workforce, Federal Reserve Governor Lael Brainard says. She says the distribution of¬†employment is uneven across¬†the US: certain metropolitan areas doing better, while others still have some slack in¬†the local labor market.
Such disparities, exacerbated by¬†the post-industrial decay that has come to¬†characterize the northern part of¬†the US known as¬†the ‚ÄėRust Belt‚Äô, indeed undermine the US economy‚Äôs longer-run prospects. America‚Äôs working class has been decimated by¬†decades of¬†corporate decisions to¬†move industrial facilities overseas, and job creation would definitely help.
However, Brainard advocates a different approach. She says the Federal Reserve should take measures to¬†address income inequality at¬†the expense of¬†the existing production capacity.
‚ÄúTo the extent that disparities in¬†income and wealth across¬†race, ethnicity, gender, or geography reflect such disparities in¬†opportunity‚Ä¶ the disadvantaged groups will underinvest in¬†education or business endeavors, and potential growth will fall short of¬†the levels it might otherwise attain,‚ÄĚ Brainard said at¬†a Fed research conference.¬†
She was citing the numbers from¬†the upcoming Fed publication, Survey of¬†Consumer Finances. Brainard emphasized that wealth redistribution should be favored over¬†wealth generation, which is hardly surprising, given her background.¬† ‚Äď¬†Sputnik News
Thanks to the Federal Reserve over the past six years, zero percent interest rate policies have destroyed much of the savings of the average American while at the same time artificially propping up equity markets so that the 1% could vastly increase their own wealth.¬† And when you couple in trillions of dollars of freely printed money (QE) that went directly to the banks and corporations, the Fed’s policies provided little choice but to enrich the top earners and make capital investment a losing proposition.
Liberals are always talking about income and employment inequality, but the sad fact is that it is their own policies more than anything that exacerbate the problem.¬† And since ZIRP and all QE programs were done under a Democratic President who in addition doubled the national debt while overseeing the lowest GDP growth of any decade in history,¬† then the answer does not lie with changing fiscal policies in Congress, but in castrating the real culprit of income inequality… the Fed itself.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.