Think of the American economy as a large apartment block. A century ago – even 30 years ago – it was the object of envy. But in the last generation its character has changed. The penthouses at the top keep getting larger and larger. The apartments in the middle are feeling more and more squeezed and the basement has flooded. To round it off, the elevator is no longer working. That broken elevator is what gets people down the most.
From the WSJ:
Spurring faster growth ought to be the main goal of Washington policy, but instead President Obama continues to rely solely on the Federal Reserve. The Fed’s Open Market Committee didn’t disappoint him on Wednesday, voting as expected to continue its taper of bond purchases but promising to keep interest rates near-zero as far as the eye can see. This should be good news for stocks and other asset prices, if not necessarily for growth and real middle-class incomes.