The middle class has dwindled

To the editor:

Federal Reserve policies since early indications of the Great Depression have been the innovation of a new large scale version of trickle down economics. The Federal Reserve, in collaboration with the big Wall Street banks, instituted the twin policies of 0 percent interest and quantitative easing. In order for the policies to be implemented, the foremost requirement was a massive increase of treasury securities. Hence the incessant struggle with Congress to increase the debt ceiling, without which the scheme would not work.

The Federal Reserve 0 percent interest created the liquidity for the banks to purchase the new inflow of treasury securities short- and long-term. Quantitative easing funneled the securities through the Federal Reserve for redistribution to the greater economy.

The flaw in the system was that Wall Street banks did not cooperate in making funds available to the public for productive purposes. Instead, the banks opted to concentrate on trading purposes exploding stock values exponentially. The result is wealth disparity without precedent.

The middle class has dwindled for lack of meaningful jobs and loss of conventional investment income from local banks paying near zero interest.

George Black

Iowa City