Scott Horton Show - Just the Interviews
7/25/24 Thomas Eddlem on How the Fed Hurts the Poor
Jul 28, 2024
Thomas Eddlem, a William Norman Grigg Fellow at the Libertarian Institute and economic writer, dives into the damaging effects of the Federal Reserve's policies on the poor. He reveals how inflation is eroding the value of Social Security benefits, threatening financial stability for many. Eddlem also discusses the housing crisis, illustrating how Fed policies trap individuals in poverty by inflating property prices and creating a regressive financial landscape. His insights offer a compelling look at the economic challenges faced by working-class families.
28:03
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Quick takeaways
- The Federal Reserve's policies lead to significant inflation, undermining the Social Security Trust Fund's value and reducing future benefits for contributors.
- Inflation and low interest rates cause a housing crisis that traps individuals in poverty, as rising property values do not translate to financial stability.
Deep dives
The Impact of Inflation on Social Security Trust Fund
Inflation significantly undermines the value of the Social Security Trust Fund, with estimates showing that it loses about $100 billion annually without any withdrawals. This occurs due to the Federal Reserve's policies that suppress interest rates and inflate currency, effectively reducing the purchasing power of funds intended for retirees. As a result, individuals who contribute to the fund may find that their future benefits are diminished, as the real value of their expected payments declines over time. The discussion highlights how these financial maneuvers create a facade that allows the government to appear to support social programs while eroding their actual financial stability.
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