We have to consider the 30 years of stagnant wages that your average Americans have had to face. That fact is that the reason we have people refinancing their homes, getting home equity loans, getting high rate interest credit cards and petty loans is because wages have been flat. We need to pursue a higher wage strategy. Humphrey-Hawkins required that the Fed not only try to maintain loan inflation, but also increase full employment. Full employment, with the increased productivity rates that we would experience, would have meant that people would have been making more money. If people would have been making more money, people would not be in the difficult, dire straits that they are in today. I think that we have to look beyond just the current crisis in to the larger framework.

This entry was posted on Wednesday, July 16th, 2008 at 3:01 pm and is filed under Politics, Economy/Budget .