As long as the pool of real wealth is expanding, easy monetary policy will appear to “work,” and loose monetary policy is likely to be incorrectly held as generating economic growth.
Once, however, the pool becomes stagnant or starts declining, the “music stops” and no amount of central bank monetary pumping is going to “work.”
In a recent tweet, Philip Kotler, author of the most widely used marketing book in graduate business schools worldwide suggested that the government should be doing much more to reduce inequality.
To quote Kotler:
Centuries ago, those who believed themselves to be harmed by “slanderous” words may have had to take matters into their own hands, perhaps through dueling, or even through just a drunken fist fight with one’s accuser down at the local tavern. Sometimes, these confrontations led to either intentional or accidental death.
Over time, however, courts were tasked with addressing harms allegedly done through this sort of defamation.
After almost twenty years without an execution, the Federal penal system has decided to proceed with a number of executions. NPR reported last month:
U.S. Attorney General William Barr has instructed the Federal Bureau of Prisons to change the federal execution protocol to include capital punishment, the Justice Department said.
Last week Business Insider published an article with the eye-opening title “NYC’s $15 minimum wage hasn’t brought the restaurant apocalypse — it’s helped them thrive.”
There are some signs that the pace of US economic activity is starting to slow down. For instance, the yearly growth rate of industrial production, which closed at 5.4% in September 2018, fell to 1.3% by June this year (see chart).
In addition, the annual growth rate of the consumer price index (CPI) eased from 2.9% in July last year to 1.6% by June this year (see chart).
