The Fed is the source of the problem. They purchase assets to prevent those assets from declining, and encourage consumer behavior that exposes citizens to eco

The Fed is the source of the problem. They purchase assets to prevent those assets from declining, and encourage consumer behavior that exposes citizens to economic risk. Remember Greenspan extolling the virtues of tapping into your home equity? Or more recently, Bernanke describing QE as a permanent tool? Last year, Yellen even suggested that Congress should revisit the rules around Fed purchases of equities. The Fed also encourages fiscal policy that reinforces a widening wealth gap and perpetuates moral hazards. We live in a society where the "experts" repeatedly push the notion that governments should stay out of growing sectors and inject life into collapsing sectors. Contrast this with what China does, where they back new enterprises in growing sectors while allowing deadwood firms to go under in lethargic sectors. [0] We in the USA have bailed out automakers that can't keep up with their foreign competition. We have bailed out banks that were too stupid to avoid buying billions of dollars of junk. We have even bailed out airlines during a period when business and international travel are at a deep nadir. Yet we find it difficult to spur new growth in the digital economy, whether by enabling competition against Big Tech or by investing in the infrastructure that supports semiconductor fabrication. Don't look to the Fed for a solution. [0] https://www.bloomberg.com/news/articles/2021-01-04/china-tells-inefficient-firms-to-toughen-up-or-prepare-to-fail https://www.bloomberg.com/news/articles/2021-01-04/china-tel...