As a baby boomer looking toward retirement, I find nothing more frustrating than low interest rates. Rates were driven down by the housing crisis in an attempt to hold up prices and avoid deflation. While I agree low rates have helped people who paid too much for their house and saved banks from bankruptcy, it’s punishing those who weren’t so stupid.
My opinion is that lowering rates for those lending money has lost its effectiveness at causing inflation. Selling billions in low-rate bonds steals money from the taxpayer and it’s failed to raise wages. I would suggest a more straightforward method. Let’s give every American boy and girl $20,000 to spend on school, a house or a business for their 20th birthday. Then the money will go directly to those who need it, stop rewarding those who caused the problem, and allow those who save to be rewarded.
Larry Lugar, Boise