Wednesday, November 13, 2013

Pumping money into the economy will help reduce unemployment, right?

Umm, wrong.  Central planners and the central banks they control have argued for years that by increasing the money supply in times of economic sluggishness, the economy can be jump started and unemployment will decline.  Of course, reality doesn't support this perspective as this strategy has failed everywhere it's been tried.  Here in America, we call it quantitative easing (QE) and we've engaged in four such episodes since the financial meltdown at the end of Bush-the-Younger's term.  So, have they increased labor participation rates?: Here's a chart from a short, very valuable post at Bullfax.com:



There's a second, equally as informative chart at the link.  Check it and the rest of the article out!