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View Full Version : FED: Redistribution of wealth (do I understand how this works?)




thequietkid10
04-05-2012, 04:55 AM
When I'm work, I sometimes day dream, this is a radio interview statement which I imagined giving to explain the dangers of the fed.



The occupy Wall Street people are right to be upset about the growing gap between the rich and poor but there target and their ideas are off. The true enemy is the fed. When the fed lowers interest rates expands the money supply, and creates cheap money, then wealthier people have more money to invest in the stock market. However these polices also cause inflation, and those of us who have been around for a long time understand how much the price of goods has gone up over the last couple of decades. As long as the return on your stock option, your 401Ks and your other savings, out pace inflation, your doing fine. But for millions of Americans who live pay check to pay check, this isn't an option. But the continual rise in prices is a reality. Especially for thosewho do not get regular pay raises.

Now if you look at the difference between the 1% and the 99%, you will see two important elements.

1. The gap in salary has remained the same over the past 40 years, but wealth from other sources, likes stocks have driven the growing divide between the rich and the rest of us.
and
2. this expanding gap can be traced back to the early 1970s, at about the same time Nixon ended the Gold Standard.

That is why Libertarians blame the fed, for the greatest transfer of wealth in US history, from the poor to the rich.



How accurate would this statement be?

LibForestPaul
04-05-2012, 04:48 PM
Pretty good. Just a little too sanitized for my taste.

Black Flag
04-06-2012, 12:44 AM
Not bad; accurate but not too academic

Paul Or Nothing II
04-06-2012, 01:36 AM
People need to stop making it about "rich & poor", "1% vs 99%" & make it about those who are politically connected & corrupt benefitting at the expense of the rest! If someone gets rich by producing goods & services then that's beneficial to the whole society as goods & services are the real wealth that enhances everyone's living-standards but if someone makes money due to their political connections then that's not desirable

LibertyEagle
04-06-2012, 02:34 AM
People need to stop making it about "rich & poor", "1% vs 99%" & make it about those who are politically connected & corrupt benefitting at the expense of the rest! If someone gets rich by producing goods & services then that's beneficial to the whole society as goods & services are the real wealth that enhances everyone's living-standards but if someone makes money due to their political connections then that's not desirable

+rep (When it lets me give you one, that is)

There isn't a thing wrong with someone being rich, if they earned it honestly.