Opinion: The Federal Reserve's plan to combat recessions rarely works and often benefits the already-rich — here's why (by paulconstant)
was entirely the Fed's fault. The problem wasn't in the creation of new money, Leonard argues — the problem was where that new money went and who was in charge of distributing it.
to spur the economy over the last four decades: Giving money to the richest Americans doesn't create economic growth. Additionally, Leonard said the currency created by the Fed has funded activity that's actively harmful to the public good."One of the things I document in the book is how this binge of debt and quantitative easing really benefited the fracking industry," Leonard said."It pushed billions of dollars into corporate junk debt for frackers in North Dakota and Texas — investments that don't make any sense at all" if we expect to combat climate change.
Goldstein added the Fed would be"collateralizing against future rents or future income from these investments" and in the meantime the money created would be directed"toward transit and housing and clean energy and schools and so many other things that are real investments that pay off in the future and would more broadly benefit people than just going and raising asset prices.
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