Another example, take one of the problems that "progressives" always talk about: income inequality. The problem is that the government itself creates this inequality. Obama, an economic illiterate, would love to raise taxes on the so-called "wealthy" to "even things out." The top 10% pay 70% of the income taxes already (or about 23% effective rate). But, if he actually succeeded, the economy would stagnate further and unemployment of poor people would rise even further. Already black American unemployment is some 15%---twice the average. It's true that before income taxes were instituted in 1913, that there were fabulously wealthy people, but the economy grew faster before 1913 than after.
Various government programs (over about 5 administrations and both parties) caused the housing bubble and the resulting bust which left millions of people underwater on their mortgages. Now the Fed has vowed to create housing inflation again to "rescue" these people. Except, the Fed can't just inflate housing--it must inflate everything---which hurts the bottom 90%. Furthermore, we are once again rewarding people who go into debt! Ugh, people never learn.
More examples:
- The last mortgage debt crisis, leading to a financial bubble, was promoted and essentially caused by the Fed and Gov't policies (mortgage interest deduction, no capital gains tax on housing). The subsequent bursting of that bubble and debt hangover has caused an anemic economy for 5 years and counting. That hurts everyone--100% of us.
- The Federal Reserve bond buying program (QE) puts Trillions of dollars into the hands of the top 1% or 0.1%, not the bottom 99.9%.
- The Federal Reserve has vowed to help the stock (and bond) market with their bond buying program. This helps the top 1% and top 10%, not the bottom 90%.
