It’s greatly encouraging to see the GOP candidates focus more on one of the largest economic problems facing the United States: the Federal Reserve and monetary policy. On Tuesday night, we witnessed the GOP field address monetary reform as a key to economic fairness and growth in a bigger and more substantial way than ever before. Candidates centered their comments on the problems created by the Federal Reserve’s artificially low interest rates and how it has adversely affected equitable prosperity through rising prices and stagnant wages for working families.
The Federal Reserve’s zero interest rate policy repeatedly came under fire at the Fox Business GOP debate, and several candidates chimed in on the issue substantively:
Rand Paul: “I think the Federal Reserve has made [income inequality] worse. By artificially keeping interest rates below the market rate, average ordinary citizens have a tough time earning interest, have a tough time making money. They’re actually talking now about negative interest. The money as it’s created through quantitative easing or other means tends to start out in the big banks in New York. And because we’re now paying interest for them to keep the money there, much of that money has not filtered out into the economy. So what we’re finding is there is increasing income disparity and income inequality.
“We also find that as the Federal Reserve destroys the value of the currency, what you’re finding is that, if you’re poor, if you make $20,000 a year and you have three or four kids, and you’re trying to get by, as your prices rise or as the value of the dollar shrinks, these are the people that are hurt the worst. Continue Reading