Richard D Skillen M D

Monetary Policy Generates Poverty Richard D Skillen M D

The 1950s were affordable. Minimum wage workers were able to maintain households, makeends meet, and save for there future. All of this has changed. We have now had six consecutivedecades in which the poor have gotten poorer, and greater in number, while the rich havegotten richer. These ever worsening conditions for poor people are the result of FederalReserve Bank policy. 0ur leaders wanted to prevent another Great Depression, and theydeveloped expansionary monetary policy as the best way to accomplish this. The policy wasestablished in the 1950s, and has been in continual use since then. Its main feature is toincrease the money supply each year so that prices will increase each year. This annual increasein prices is thought to stimulate the economy such that the nation's output of goods andservices (product) will increase each year, and unemployment will be kept at a low, favorablelevel. Any large economy has industries that are declining, and the annual increase in prices damagesworkers in declining industries. University economics does not recognize the existence ofdeclining industries, and no economics textbook discusses declining industries. This pamphletexplains how expansionary monetary policy damages declining industries workers, and why thepolicy, as practiced, must be abandoned. It also shows that the endless increase in prices causesan unacceptable decline in the purchasing power of the dollar.