The View From 1776
Monday, April 27, 2009
The Fed Plans Deliberately to Steal Your Savings
The Federal Reserve’s policy target of 2% annual inflation, recently proclaimed by Vice Chairman Donald Kohn, will reduce the purchasing-power value of your savings 15% every decade. Inflation is, in the liberal-progressive-socialist religion, believed to be essential to insure full employment. Because of it, thirty six years from now, when you hope to bequeath something to your children or grandchildren, your savings will be worth only half what they are worth today.
What the Fed’s socialist planners are doing in reality is supporting the Democrat/Socialist Party’s labor union voting bloc. Unions have cost-of-living adjustment clauses in their labor contracts, so they don’t suffer from inflation. The vast majority of American workers, who are not unionized, are paying for non-competitively high union wages and gold-plated health and retirement benefits with inflation, which amounts to an unlegislated tax on everyone but the labor unions who supply the money and free manpower to elect Democrat/Socialists.
Read John Tamny’s Forget Inflation Targets, Go For Dollar-Price Stability on the Forbes Magazine website.