Quantitative Easing has been the fuel for rising inequality and welfare for the modern Gilded Age: President Fisher from the Federal Reserve Bank of Dallas mentions QE’s gift to the rich.
As the Fed begins to slightly ease up on Quantitative Easing the reality of the winners and losers is becoming more apparent. QE was welfare for the wealthy and even President Fisher of the Dallas Federal Reserve Bank hints at QE being a massive gift to boost wealth. Well if we merely look at wealth across America, the only group that saw wealth increase after the recession ended was the top 10 percent. QE was ushered in under the guise of helping the nation overall but what we have seen is massive low-wage work taking over good paying jobs while banking profits hit new record highs. The Fed’s balance sheet has ballooned to well over $4 trillion and even though tapering is slowly beginning, there is no sign that the balance sheet is shrinking. The average American may not care about the Fed or even realize what is going on with rising wealth inequality but this is absolutely important. QE was the picture perfect example of welfare for the wealthy.
Income inequality at new record levels