Tough Luck Workers, You’re Screwed

That was the message of Federal Reserve Chairman Ben Barnanke at his press conference on April 27. His latest effort nicknamed QE2 was to spend $600 billion on Treasury Bonds. The idea was the Treasury Bonds market would dry up a bit pushing purchases into more risky investments like stocks and commodities (oil, gold, etc) It’s worked fine driving up stock prices, gold, oil, etc. Has it created jobs?

“The rosiest projections of QE2 credit it with creating about 700,000 jobs, which falls far short of the millions America needs to return to full employment.” says The National Journal writer Jim Tankersley It works out to $600 million dollars to create every 700 jobs.

Mike Whitney says this about QE2. “It’s a direct subsidy to the investment class while workers are left to face higher prices on everything from gasoline to corn flakes. It’s a royal screw job.”

There’s no QE3 from the Fed. And no new stimulus money for public works from Congress. This is the best that capitalism can do.

Isn’t it time to forge something different?

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