Big Government's Big Spending Has Boosted Inflation and Killed 3.5 Million Jobs

Rising prices are no surprise to anyone who has been following the actions of Ben Bernanke's Fed. Two rounds of "quantitative easing" injected more than $2.3 trillion into bank reserves, and thus to some extent into the economy. The more money chasing products and services, the more those products and services cost. Bernanke's thinking was that by pumping trillions into the financial system, he could spur lending, investing, and spending via lower interest rates, and thus goose the economy. But the strategy not only hasn't improved the economy, it has also had two major bad side-effects. Increased inflation is one side-effect, discussed below. But first, let's cover a truly nasty side-effect which is being under-reported. The Fed's foolishness has weakened job markets. A former president of the Atlanta Federal Reserve Bank, William Ford, and an American Institute for Economic Research fellow, Polina Vlasenko, point out that Bernanke's tactics have depressed the interest income of...(Read Full Post)