Declining Civilian Employment: Another “Success” Story of Unconventional Monetary Policy

Civilian employ-population ratio

The graph above shows how irresponsible monetary policy caused financialization & de-industrialization of the US economy. With so few new loans going to private-sector ventures, it should be no surprise that the ratio of private-sector workers to total population has declined so sharply.

Consider how risk perceptions were distorted by centralized repression of interest rates to put them at absurdly-low rates to support exploding government debt so resources were diverted from the private sector to the public sector.

There might a been a different picture if markets had not been flooded with liquidity that provided fuel & pumped air into bubbles or low rates that discourage saving & reduced income & earnings for households.

Those that would attribute any of this to a failure of markets (capitalism) must willfully ignore how monetary policy suffocated markets & then blame them for failing!

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About christopher

Content of "Natural Order" attempts to reflect the commitment of Universidad Francisco Marroquin to support the development of a society of free & responsible individuals. The principal commentator for this blog is Christopher Lingle.

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