Ralph Benko looks at the political landscape in today’s Forbes.com article where he touches many topics:
The Democrats most emphatically are presenting a shrill “income inequality” campaign theme. As Democratic rock-star progressive Senator Elizabeth Warren (D-Mass) put it, in campaigning for the re-election of her progressive Democratic colleague Al Franken (D-Mn) “The game is rigged, and the Republicans rigged it.” Not to be outdone, Hillary Clinton recently declaimed “Don’t let anybody tell you it’s corporations and businesses create jobs….” Forgive my incredulity, which seems shared by a lot of us voters.
The proposed Democratic remedy? Mandatory minimum wages and “gender equality.”
Newspeak for government, rather than the market, determining wages.
The left elegantly is engaging in an attempt at reframing of the ambient degradation of economic (and social) mobility. There is plenty of blame to go around for economic sogginess. That said, the degradation mostly is an outcome of favored Democratic policies.
So-called “income inequality” is a tale to be pinned on the Donkey, not Pachyderm. Historical analysis strongly suggests that this, in its current degenerate form, came out of the lamp rubbed by Lyndon Johnson’s closing of the London gold pool and the Nixon Shock’s application of progressive-advocated policies such as wage-price controls and a tariff. These proved, of course, briefly popular and soon truly catastrophic.
The closed gold window is the sole lingering aftershock of the Nixon Shock. Whether or not money supply is calculable money demand inherently is not. Thus technocratic management of monetary policy by the Federal Reserve has proven debilitating to the economy. “Income inequality” correlates with the repudiation (by both Johnson and Nixon) of Bretton Woods and its replacement by technocratic discretionary Fed monetary policy.