Loading ...That’s right, everybody thinks rates should be higher, because historically going back to 1913, they always WERE higher, until…Drum Roll….the end of the trend, financial crisis of 2008.
Ya know? They had to know they made a mistake by 1929 causing 1934 and 1937. Then by 1964 they got another hint, and had to remove Silver coins from circulation. The next hint of a big hint of mistake, was 1971, when they were forced to remove Gold backing on the US Dollar.
Then by 1982, their great Fed Res system was so distorted they had to put interest rates up to 21% and so “hard up” they could not afford to make Copper pennies anymore. They were costing .13 cents each to make in ’82. Just one problem after the next since 1982.
After three generations of financial leadership, they have a very complicated situation on their hands, and they are not as smart as their grandfathers in the 1930s they did what had to be done. The Minimum Wage and Maximum Hours act of 1937.
They probably need to bite the bullet and do it again. Maybe globally, but the “wage” can’t be defined in currency. In each region it would have to be defined in “room and board” costs. Just like utility prices are determined in production cost in that region, instead of “fixed” currency minimum.