This blog has been highlighting how Federal Reserve policy hurts young people:
- How negative interest rates harm young people by making it very difficult to accumulate wealth as inflation erodes the value of savings.
- How QE and low interest rates pump up asset prices forcing young investors to buy into overvalued asset markets and exposing young people to losses from asset price crashes.
- How low interest rate policies lead to the accumulation of government debt the burden of which will be borne by future taxpayers.
- How the accumulation of debt by government leads to greater risk of economic downturns and how these downturns harm the long-run prospects of young people that come of age in bad economic times.
Recently Florida Senator sent Federal Reserve Chair Jerome Powell a letter outlining his concerns. The letter addresses many of the above topics albeit without specific reference to the impact on young Americans.
The Scott letter deserves a close read. Follow this link to Senator Scott's letter.
