A Recovery For The Rest of Us - Forbes:
Could this be another flaw of monetary policy. Krugman is always shouting that it doesn't work well at the zero-bound but maybe it doesn't really work very well in an overly unequal economy?
The elite/the rich/Capital capture the majority of the monetary stimulus leaving little for the worker-bee/labor group. The rich don't really need the money so it just creates bubbles as it ricochets around the financial system. The poor are left to scramble for the little that "trickles-down".
Good fiscal policy that puts labor directly to work, puts the money where it can help the majority,.. in labor's pockets. I guess bad fiscal policy, that is, waste programs designed to feed cash to special interests, would also just feed cash to the rich.
So, i guess as long as the rich hold the power we can expect monetary policy combined with bad, crony-ism fiscal policy. We're screwed.
tnb
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