Obama sees himself as the champion of the 99% but the policies of his administration have been much better for the 1% than the 99%. The American dream has become the food-stamp dream for 47 million American’s under Obama. This sort of massive welfare doesn’t just wreck the budget, it wrecks people. If it’s not intentional then the only conclusion one is left with is that Mr. Obama is not a very smart man. It’s like if Bill Clinton were put in charge of a program to stop male politicians from sexually exploiting young women who work for them. Of course, then there would be no doubt that the failure was intentional.
Someone who is determined to disbelieve something can manage to disregard an Everest of evidence for it. So Barack Obama will not temper his enthusiasm for increased equality with lucidity about the government’s role in exacerbating inequality.
In this sixth year of near-zero interest rates, the government’s monetary policy breeds inequality. Low rates are intended to drive liquidity into the stock market in search of higher yields. The resulting boom in equity markets — up 30 percent last year alone — has primarily benefited the 10 percent who own 80 percent of all directly owned stocks. Charles Wolf writes in the Weekly Standard: “The financial sector’s profits rose from 18 percent of total corporate profits preceding the recession in 2007 to 23 percent in 2013.”
Richard Fisher, president of the Federal Reserve Bank of Dallas, says the total reserves of depository institutions “have ballooned from a pre-crisis level of $43 billion to $2.5 trillion .”
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