That elites and the transcribers of press releases (formerly known as “journalists”) don’t understand what is happening to most working people is never more apparent when discussing the Federal Reserve Board, and the basic abandonment of the idea of full employment.
Most people have no idea that the Fed’s job is not simply price stability. It is supposed to, by law, strive for full employment.
So, when you read this, you learn two things:
The main goal is to get the unemployment rate down to 6.5 percent or lower. The Fed is also watching the falling inflation rate and will keep buying bonds if that indicator falls to a level that it thinks will weaken the economy and financial system.
First, that there is no intention of making sure every person has a job. To shoot for a rate of 6.5 is a joke. Full employment is generally thought of to be around 4 percent because, at any given time, a certain number of people are on the move between jobs.
Second, no one ever wants to talk about the QUALITY of jobs. You can’t find much in the way of a conversation among the elites that says, duh, people can’t make ends meet even when they are employed because wages have gone down, health care is more expensive and real pensions are a thing of the past.
Another world these folks live in. Or, worse, just don’t care.