Letter: Easy Money on Wall Street is the Greatest Source of Income Inequality
To the Editor,
There is no greater engine of income inequality than the Federal Reserve system. It creates money out of thin air to benefit high income folks on and around Wall Street. While this may have some stimulative effect on the economy, the benefits are not equally distributed. Investment banks and trading firms enjoy this stimulus, allowing them to pay huge bonuses. Meanwhile, Main Street languishes.
The Federal Reserve has been buying up mortgage backed securities at the rate of $45 billion per month. This relieves traders of risk for bad loans. Money injected at the high end tends to drive all prices up. This price inflation hurts low and middle income people most by making their dollars worth less.
The Federal Reserve Transparency Act, H.R. 24, currently has 184 co-sponsors. The bill proposes a full audit of the Federal Reserve. This and similar bills in previous sessions have gained bipartisan support. Always absent from the list of co-sponsors is our own Representative Ron Kind. Ron is WRONG to place the interests of Wall Street above those of his own constituents in Wisconsin’s Third District.
Ken Van Doren is running for Wisconsin’s Third Congressional District, you can contact Ken at [email protected]