The Futility Of Low Interest Rates To Save The Already Marginalized

One who make comments on Angry Bear, William Ryan, made a comment…

“Besides I thought we have been in a slump since 2008 haven’t we? ( I guess it depends on what sector of the economy we are talking about)”

What sector has been in a slump? Middle and low incomes. Wages have been barely rising. Under-employment is rampant with high levels of part-time workers and long-term unemployment.

How low interest rates are a Futile Attempt to save the Already Marginalized from High Inequality

Labor share has really been dropping since 2003. Inequality is rising. Corporations are making record profits while labor becomes marginalized. What does it mean to be marginalized?

If you go to any Latin American country, you will see large sectors of the populations marginalized. They just do not participate in the economy to any great extent. I have lived in Mexico, Guatemala and Chile andpassed through other countries.

Why are large sectors marginalized? … It is simple, Inequality. Money gets concentrated at the top and flows very slowly among the bottom of society. The rivers are full at the top, but the rivers run dry and slow at the bottom. It is a liquidity thing. It is the reason that Reagan and others were so wrong about “Trickle-down economics”. When you create an economy for the top incomes, hoping that it will trickle-down to the rest, you are in the realm of being evil. It is one of the greatest lies.

I never liked Reagan, even before 1980. I was not happy when he became president. I knew things would not turn out well over time. He started the political process to create inequality.

Ok, enough on Reagan… back to low interest rates and low inflation.

When you look at a society, you will see sectors of labor marginalized, cut off from the economy. You may see millions upon millions in the country-side of China, or millions in India. You may see millions becoming marginalized in the United States.