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This is a ridiculous statement. The Fed is a profoundly undemocratic institution that harnesses the power of the state to serve the interests of capital, and it
by CPLX 1y ago
This is a ridiculous statement. The Fed is a profoundly undemocratic institution that harnesses the power of the state to serve the interests of capital, and its current form is a recent development that coincides with the financialization of our economy and the decimation of manufacturing and the middle class.
If you want the full argument it’s here:
https://www.thebignewsletter.com/p/federal-reserve-independence-is-bad https://www.thebignewsletter.com/p/federal-reserve-independe...
- BobbyJo 1y agoI don't think its any less democratic than any other government organization run by appointees. Manufacturing's decimation had far more to do with globalization than banking regulation IMO.
- LtWorf 1y agoHow dare you be critical of capitalism on ycombinator?
- CPLX 1y agoWhat the Fed does isn’t “capitalism” it’s literally a government agency that sets prices.
- presentation 1y agoIt's good that the Fed can set monetary policy without pandering to whatever short-term goals politicians have at the time, as they've thoroughly proven their incapability to tackle long-term challenges like the deficit. I also don't think that bailing out SVB is a sign that Dodd-Frank was just symbolic, since not doing so would have pretty significantly hurt the USA's tech sector, which is is strategic nationally for the economy. But I can see an argument for limiting the Fed's purview to mostly be about monetary policy and less about enforcement of legislation, as it's done in other countries.