Earlier this week, Washington Post columnist Robert Samuelson complained about the alleged folly of Fed-bashing – which sparked this insightful and forceful reply from George Selgin on the very real folly of Fed obeisance. Here’s George’s conclusion:
But the Fed needs more than mere watching. It needs scrutiny. It needs criticism. Above all, it needs to be reined in–not for conservatives’ sake, but for everyone’s. Mr. Samuelson may not like it. But I, for one, intend to keep bashing away.
So, the good economist, while understanding that monetary incomes are certainly one relevant measure of economic well-being, understands also that they are ultimately not what matters most. What matters most is ability to consume. The good economist, therefore, worries less about differences in money incomes and focuses instead on differences in “consumptionability” — a focus that reveals that, regardless of what’s happening to income distribution, the ability to consume is becoming increasingly more equal.