Home | About | Donate

The Fed Gets It Right. Now Let’s Move to Full Employment


#1

The Fed Gets It Right. Now Let’s Move to Full Employment

Isaiah Poole

Hours before the Federal Reserve was to announce whether it would increase interest rates, several dozen protesters gathered outside Federal Reserve offices in downtown Washington to demand that the Fed keep interest rates where they are, arguing that the economy as they experience it has yet to recover.


#2

This economic article is just like all the rest. It does not even consider the planet we live on or the people living in war torn or post colonial poverty. Imagine for a moment the author believes all humans are created equal: That implies full employment for everyone on Earth.

Now imagine seven billion people working 40 hours a week making and using plastic fantastics, armaments and factory farmed food. Global climate collapse and chemical poisoning would wipe out all mammals as rapidly as the Chinese are doing themselves in with pollution from this plan.

The global economy requires 1.5 planets worth of resources and pollution recycling. If everyone lived like Europe we would need three planets and if every one lived like the United States the economy would require four Earths.

Mindless advocacy of full employment spurred on by low interest rates and deficit spending implies the declining quality of life in US and European corporatism can be reversed by minimum wage austerity for all.


#3

Low interest rates have not brought us jobs in the past and will not bring us jobs in the future. Do you really think the republicans will create a jobs program for our infrastructure? What Garrett says is very true but we could create many, many local jobs in sustainability but will everyone make a living wage?


#4

"The Fed Gets It Right"? For whom? Surely not for the people out there. The Fed once again get it right for the corporations, the banks to continue to play with money without having to pay any interest on it. You think Joe 6 pack will be helped by this?


#10

Thanks for the book reference. I will write it down and see if I can get it second hand from Amazon. $30.00 is too steep for me.


#12

Forget about full employment, unless you plan to count the likely massive military draft-callup for the next imperialist war that's on the horizon. Dr. Poole and many other economists don't seem to understand what has happened in the world -- the economic slowdown America and Europe now face is not the result of the normal cycle, it's the result of smart policies by Russia, China, India and others aimed at starving Western economies and their military-industrial regimes. The U.S. economy will not be improving significantly any time soon because those global markets are gone, and the U.S. business infrastructure now is almost completely dependent on international transactions. Too bad for the next generation of Americans and the one after that, too. But U.S. officials -- with their weirdly arrogant and belligerent foreign policies, especially in the Mideast -- asked for it. And now we are all getting it.


#13

When Mr. Poole returns from outer space and is capable of standing up in earthly reality (U.S. hegemonic reality) i would be more than happy to give him a tour of all the indexes crapped out of the us. govt bowels. Full employment indeed!!! This is the kind of analysis and nonsense that has kept us from recovering. Get real!!!


#14

I.....I.....>Someone wrote this with a straight face? Oh, it's CAF. Good, ol' clueless CAF.

Someone mentioned this below (above) that low rates (or in this case, free money) don't mean more jobs. And certainly not good jobs. There's plenty of spare cash already to invest ni expansion and employable enterprises. But that cash goes unspent there. It gets tossed into the casino instead because the casino pays way better than a franchise burger joint in some town.

I know I bag on liberals a lot, but this is beyond the pale. How can anyone concerned with working people and the real economy think this way?


#15

Perhaps you might possibly consider the stimulus from infrastructure development and public transit (as opposed to military would be my preference) and the many other job-stimulating challenges that would benefit everyone in our country. Of course, this may inspire shouts of "socialism" and worse...but I sure wish someone could get paid to fill in the potholes in my town and much more.


#16

Probably not for Joe Sixpack. The Fed was contemplating a rise of maybe .025%. I can't see how that would have benefited or harmed Mr Sixpack either. Eventually as we approach full employment, interest rates will have to go up. But as the article points out, there is plenty of disagreement about what constitutes full employment.


#17

That used to be done by a bunch of day laborers working off the back off a truck. Now you need a $350,000 machine to do it-and a bunch of guys standing around watching the machine.


#18

Roger that.
Before the Zero-Rate policy in 2008 I was getting 5% on my savings at my credit union --
now, for the past 7-years, nada, zip.
So for all the folks like me, times seven years -- that must be trillions lost to the zombie banks.

All this does is to prop up the stock market -- creating an equity bubble that will implode.


#19

Outstanding, succinct summary JJ


#20

We have been on the doorstep of rerunning the Great Depression for years. We and the whole world has too much capability to produce stuff. Too many loans have been made to projects that haven't paid off. All of that can be called 'Zombie' of the Zombie economy.

If government wasn't intervening people acting economic free would destroy that excess production-capability, and destroy (repudiate) those loans. Some of that would be called 'cut-throat competition', until a sufficient number of cut-throats have died from cut-throats. So your savings at the credit union and my savings and investments would get wiped out. And both of us would lose our jobs as well. A lot of rebuilding out of the ruins. (I keep thinking of neo-Luddism, of destroying labor-saving devices...)

There is a widespread anxiety about what would happen in Great Depression 2.0.
There is widespread worry that the longer governments prop of the Zombie economy the nastier the collapse will be.

Several years ago I read in the Wall Street Journal some of the human effects of Japan's economic stagnation. Mom each day checked the electric meter. She tossed out their son's TV set. Dad started a garden as a side productive enterprise in his not-at-work hours. Eventually he realized that watering the garden from the house's water tap was costing money, and took a bucket to the nearby stream. That sort of life.


#21

I am getting 0.025% interest on a savings account at an ordinary bank.