A Call for a Free Market
Low interest rates have hugely lifted assets largely owned by the very rich, and inflation in these areas is clearly apparent. Stocks have tripled and real estate prices in the major cities where the wealthy live have been soaring, as have the prices of artwork and the conspicuous consumption of luxury goods.
.. Similarly, older adults and those on fixed incomes are getting next to nothing on their savings. In a typical bank today, $1 million astonishingly yields only about $2,000 a year. As interest income has fallen for seniors, their spending has understandably moderated. Thus consumer spending, which would have otherwise expanded the broad economy, has been sluggish.