I was listening to the Fed’s Powell and Janet Jellen’s testimony to the Congress, and I still can’t understand why we need zero rates to achieve full employment…
The government rightfully mandated many client-facing businesses (restaurants, hotels, airlines) to basically shut down (to the massive benefit of WFH winners).
But how would zero interest rates help unemployed waitresses, flight attendants, and hotel managers regain their jobs faster?
Covid response should be proxied by the war-like measures: gainers from the WFH should pay temporary excess tax on their massive gains, because their windfall was mandated at the expense of vulnerable sectors.
Yes, Amazon and Zoom should currently subsidize unemployed waitresses and flight attendants…
It is a profit redistribution for higher social good…
Like Chrysler was producing Sherman tanks during the WWII but the government controlled pricing on weapons.
