Coronavirus has done one good thing: It forced individuals to reassess investment. The result: a near-recession. While a bear market is never preferable, the chance of an economy not propped up on overconfidence and malinvestment should be desirable to all.
Then, the Fed reduced rates to 1.5% in an attempt to continue the false market previous administrations refused to give up as well. That’s what the fed does — it artificially stimulates markets for short-term advantage but lowers the purchasing power of money in the long run, which harms every consumer.
Then, in an unprecedented move, the Fed reduced rates to 0%, and pumped $1.5 trillion into banks. This means that during a market correction, in which malinvestments are supposed to be purged, even more malinvestment will occur than before the market correction.
Those in power should be glad the coronavirus will be to blame for recent (and probably future) economic downturn. There are many voter models that almost solely rely on the state of the economy and the party held responsible, so whether the regulatory overreaction convinces voters, I guess we’ll find out, though I’d argue winning an election doesn’t justify defrauding Americans, and so should you.
Austin Branthoover
Hempfield
The writer is a freshman majoring in economics at Grove City College, where he is vice chairman of the College Republicans.