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**Vemnagelignc** · 03-06-2011, 02:59 PM

That is a pretty common-sense observation; however, in the current Great Recession the Federal Reserve has made many billions of dollars available to member banks virtually interest free as a way of getting the economy moving.

Yup, each truckload of paper worth less than the last. And everything in the real economy cost more.

Alas, the banks have used this free cash to "strengthen reserves" (i.e. sit on it) and lend it to large corporation which have used the money to repurchase their own stock.

They were very nearly bleed dry by politically correct lending, a policy that is still in force by the way.

There is no point in cluck-clucking about what has happened. It is the "free market" at work doing what it does best: generating ROI (return on investment, aka "profit").

Yes, they exist to enrich their stockholders. Also known as anyone with a 401K.

The problem is that the goal of the "free market" and the needs of American society at this critical point are painfully divergent. The society needs job creation, wage increases, and increased circulation. A hundred years ago, increasing ROI would produce those social benefits as well. Today, however, the two sets of goals have become de-linked, not by greed or nefarious intent but by the nature of the new world economy, a fact that the Republican Party doesn't seem to grasp or pretends not to know.

Thats what happens when the Labor Cartels stubbornly refusing to engage in the free market, their customers have vote with their wallets.

The Big Government which conservatives hate so came into being as a necessary counter-weight to Big Business, whose explosive growth in the industrial economy following the Civil War transformed not only the economy but the society.

There was a time when basic health and safety required government oversight. It's all about being a parasite now.

The idea that a "free market" could not only regulate itself but provide maximum social benefit comes from the earlier era of Adam Smith when the economy was Mercantile and essentially agricultural. Small government was inadequate for an industrial economy a century ago. It is a catastrophe in the in post-industrial global economy in which American society exists today.

It largely a matter of technological progress. There was a time when industry required a massive infrastructure. That will soon change.

03-06-2011, 02:59 PM	#38
Vemnagelignc Join Date Oct 2005 Posts 538 Senior Member	That is a pretty common-sense observation; however, in the current Great Recession the Federal Reserve has made many billions of dollars available to member banks virtually interest free as a way of getting the economy moving. Yup, each truckload of paper worth less than the last. And everything in the real economy cost more. Alas, the banks have used this free cash to "strengthen reserves" (i.e. sit on it) and lend it to large corporation which have used the money to repurchase their own stock. They were very nearly bleed dry by politically correct lending, a policy that is still in force by the way. There is no point in cluck-clucking about what has happened. It is the "free market" at work doing what it does best: generating ROI (return on investment, aka "profit"). Yes, they exist to enrich their stockholders. Also known as anyone with a 401K. The problem is that the goal of the "free market" and the needs of American society at this critical point are painfully divergent. The society needs job creation, wage increases, and increased circulation. A hundred years ago, increasing ROI would produce those social benefits as well. Today, however, the two sets of goals have become de-linked, not by greed or nefarious intent but by the nature of the new world economy, a fact that the Republican Party doesn't seem to grasp or pretends not to know. Thats what happens when the Labor Cartels stubbornly refusing to engage in the free market, their customers have vote with their wallets. The Big Government which conservatives hate so came into being as a necessary counter-weight to Big Business, whose explosive growth in the industrial economy following the Civil War transformed not only the economy but the society. There was a time when basic health and safety required government oversight. It's all about being a parasite now. The idea that a "free market" could not only regulate itself but provide maximum social benefit comes from the earlier era of Adam Smith when the economy was Mercantile and essentially agricultural. Small government was inadequate for an industrial economy a century ago. It is a catastrophe in the in post-industrial global economy in which American society exists today. It largely a matter of technological progress. There was a time when industry required a massive infrastructure. That will soon change.
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