Looking at this artist's cartoon, one wonders if the consumer and small business investor are left to starve. Let's begin by looking at excess reserves.
Click on this link to view FRED series, EXCRESNS, and you will see that the member banks went from holding zero excess reserves to holding 1,600 billion. The banks are simply not lending despite the FED actions of adding liquidity to the lending institutions.
Use this link to view the monetary base, BOGAMBNS. Remember, that the monetary base times the money multiplier equals the money supply. Our money supply should be enough to eliminate a recession in this universe.
I agree with this artist's viewpoint and would like to conclude with a philosophical thought.
John Rawls believed that the distribution of income would be different if we had to choose our talents, income, and rights behind a veil of ignorance. Rawls believed, that if people would not know if they would be born into wealth or poverty they would choose a distribution of income and rights that would benefit the lowest members of society.
When looking at banking wealth, how much of the wealth is passed down from generation to generation. Even if the wealth isn't passed down, doesn't the wealth give advantages to the wealthy that those without wealth don't have?
It might be a weak argument, but when banks hold onto excess reserves the banks contribute to income inequality.
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