Federal Reserve cuts key interest rate in bid to boost job market - eviltoast
  • ChicoSuave@lemmy.world
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    3 days ago

    How much total value is locked up in the wealth of the rich? Go where the money is and tax the rich.

      • TotallynotJessica@lemmy.blahaj.zone
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        2 days ago

        Nah, it definitely is. If wealth was effectively redistributed following the pandemic instead of raising interest rates, it would’ve cooled down investing like they wanted without gutting the middle class. Biden earned the k-shaped recovery he warned about by being a neoliberal weakling.

        • iopq@lemmy.world
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          2 days ago

          If wealth was distributed, it would increase inflation since people would spend it on things they need, but everyone would do it at the exact same time.

          The pandemic response was very decent, there was no recession, only some inflation. The rates needed to be increased faster to control inflation, if the Fed didn’t claim it was transitory and just increased them, the inflation could have been curbed earlier.

          Wealth distribution is a different goal, and doesn’t actually cool investment. It might actually stoke it as foreign funds invest in American companies.