3 ms·
Couldn’t the Fed just offer retail loans at the Federal Reserver rate, with maybe some kind of premium if inflation is high, or discount if inflation is low? Wh
by avidphantasm 4y ago
Couldn’t the Fed just offer retail loans at the Federal Reserver rate, with maybe some kind of premium if inflation is high, or discount if inflation is low? What am I missing? Why do we need all these banks, some of which catastrophically explode every decade or so?
- loeg 4y agoI mean, you would be substantially increasing the size of government. The federal government currently employs about 3 million workers. The banking sector employs 1.4 million. To perform similar functions, the US government would need (at least) a similar number of employees. That is probably politically disagreeable.
- avidphantasm 4y agoThey would be employees of the Fed, not the Federal Government, no? Also, I am not afraid of a big government so there’s that. Also, they would be paid well, but not get insane bonuses, etc. so that’s a distributive plus in my book (i.e., less wealth concentrated in a tumescent financial sector).
- deleted 4y ago[deleted]