It continues to amaze me that learned men in economics at the Federal Reserve are so ideologically tied to our corrupt form of capitalism that they cannot see that we have sowed the seeds of our employment condition. The reality is corporations are saturated with cash. President Obama’s policies are not the reason why they are not putting their money into creating jobs in the US. The reasons they refuse to put it on the table is that it is in their fiduciary interest to either invest it elsewhere for slave labor and lax environmental and employment regulations or hold it in an economy with a discount rate near zero. We have outsourced our manufacturing and as such jobs lost in this Depression are lost forever.
This is our opportunity for government to rebuild our infrastructure. Deficit spending for infrastructure is an investment in the country that can be quantified. The multiplicative effect of millions of people spending and increase production will make this ultimately self sustaining. Corporations are fearful that success by the government will diminish their wealth transfer engine to the top 2% given that layer1 profits are removed. If more Americans realized that while we are fighting wars and letting our infrastructure deteriorate, Brazil, China, and all other tier 1 developing countries’ infrastructure are becoming what we once were.
The Fed is required by law to pursue policies that "promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."
A review of minutes of the Federal Open Market Committee meetings dating back to September 2008 — the height of the financial crisis — reveal no other meetings in which central bank policymakers expressed such a dim view of the unemployment rate. While the minutes have expressed such caution regarding the expected inflation rate, they have not indicated that the low level of employment would be so low as to threaten their legal mandate to pursue those policies that maximize employment.
"A number of participants expressed the view that, over the next several years, both employment and inflation would likely be below levels they consider to be consistent with their dual mandate, but they anticipated that, with appropriate monetary policy, both would rise over time to levels consistent with the Federal Reserve’s objectives," the minutes read.
"This tells you that some of the people at the Fed think they’re in a pretty challenging position," said Karen Dynan, a former top economist at the Fed’s Board of Governors and the White House’s Council of Economic Advisers who now serves as vice president and co-director of the economic studies program at the Brookings Institution, a Washington-based think tank.
Federal Reserve: Continued High Unemployment Threatens Fed Policy Of Pursuing ‘Maximum Employment’