Bernanke Admits More Quantitative Easing Could Happen

On November 15th, I wrote about how if the economy didn't improve, the government would probably just go forward with more "quantitative easing," figuring that if the 2nd round of $600B didn't do the job, more money would.

Little did I know that less than three weeks later, Federal Reserve Chairman Ben Bernanke would admit that the government might spend more money if the economy doesn't improve or unemployment doesn't fall. Bernanke made these comments on CBS's 60 Minutes. Bernanke also said that what the Federal Reserve was doing wasn't printing money. While technically true, quantitative easing does increase the supply of money, thereby devaluing the American dollar. Money, as anyone who has used a credit card, debit card, or direct deposit has experienced, can be created and move without actual dollar bills (cash) being used. The Federal Reserve may not be printing up c-notes, but through "quantitive easing" they Federal Reserve is creating money. This cartoon provides a more in-depth, easy to understand explanation of "quantitive easing."

Creating more money isn't the solution to our country's economic woes. The solution lies in creating jobs. The private sector, not the government, can best create more jobs and job creation should be incentivized. Additionally, the American people need the ability to spend money in a way that will benefit American business. A tax hike next month will hurt business and cost jobs, as the American people will have less money to spend. The poorest Americans are facing a 50% tax hike on January 1st, and the middle class is facing a tax hike of more than 20%. Ben Bernanke needs to get real and next time he appears on TV he should state the true solutions to the country's economic woes: job creation and a reduction in taxation. More "quantitative easing" isn't going to fix the economy.