Stimulypto! Fed Stimulus Creates Bubbles, Fiscal Stimulus Creates Employment Disparity

Sharing is Caring!

by confoundedinterest17

How bad did the Covid epidemic hit the USA? Bad enough that like humpty dumpty, all the king’s soldiers and all the king’s men couldn’t put the US economy back together again.

According to a research effort to track economic stimulus efforts, we see that low wages workers suffered a 24.4% loss in employment since January 1, 2020 while high wage workers against 2.1% in employment. Despite the CARES Act and three rounds of stimulus payments.

See also  Economic Contraction Reassures The Need For Continuous Stimulus | Work Longer, Spend More & Buy Less

What industries suffered the most? Leisure and hospitality at -20.7% since January 1, 2020.

And this was just economic stimulus from The Federal government. Then we have the monetary stimulus from The Federal Reserve with a growing balance sheet and a decline in the Fed Funds Rate (upper bound) on 25 basis points.

See also  Real Negative Mortgage Rates Abound As Do House Price Bubbles (Pfandbriefe 10Y Rate Negative Too) The Case Of Germany Versus USA

That is a ton of economic and monetary stimulus to get this pitiful return for low wage and middle wage workers.

Well done, Washington DC! Monetary stimulus is creating enormous asset bubbles while economic stimulus isn’t working and actually has helped high wage earners versus low wage earners.




Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.