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To be fair, the Federal Reserve is not responsible for labor law and the like. They are clearly very late in their response, but it's notable that a non-politi
by TAForObvReasons 8y ago
To be fair, the Federal Reserve is not responsible for labor law and the like. They are clearly very late in their response, but it's notable that a non-political organization felt the need to comment.
- noobermin 8y agoI don't think that the person you're replying to is implying its the Fed's fault as an organization. It is the function of people in power (both politically and in the economy) since the 80s having eroded worker's abilities to push back, so it's more an indictment of the system, not individuals strictly.
- TAForObvReasons 8y agoThe comment was massively down voted when I saw it, so I have to assume the reason was because people interpreted the comment as I laid it out. Though now it is out of the light grey
- deleted 8y ago[deleted]
- dredmorbius 8y ago"Job Insecurity of Workers Is a Big Factor in Fed Policy" https://web.archive.org/web/20100304170139/https://www.nytimes.com/1997/02/27/business/job-insecurity-of-workers-is-a-big-factor-in-fed-policy.html https://web.archive.org/web/20100304170139/https://www.nytim... The Fed has an interest, and influence, on labour conditions, if not direct legislative input. Unemployment is the other of its dual mandates. (Though, and crucially, not wage levels.)
- walru 8y agoThe Fed is responsible for the savings rate of the average American, which is to say, it's absolutely worthless to stick your money in the bank and watch it grow, which would help starve off what they're talking about here.
- Y_Y 8y agoI think "starving off" might be exactly what they have in mind.
- deleted 8y ago[deleted]
- walshemj 8y agoYou know that high interest rates for savings go in had with high inflation cash never beat's inflation.
- kolpa 8y agoThe average American has no particular reason to stick with a "savings account". They could buy equities and ETFs that are as simple as savings accounts.
- gbacon 8y agoYou are responsible for your rate of savings. I am responsible for mine.
- pjmorris 8y agoThe Fed is responsible for QE, including about two Trillion in purchases of Mortgage-Backed Securities [0], which has the effect of making housing more expensive than it would otherwise be. If you're a home owner or debt owner, that's good for you. If you pay rent or a mortage, that's wage suppression. [0] https://fred.stlouisfed.org/series/MBST https://fred.stlouisfed.org/series/MBST
- pjmorris 8y agoI am interested in the views of those who downvote this comment. My facts are conventional, I'm guessing that my perspective is controversial.