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by riku_iki 1011 days ago
> And who sets the Fed’s function?

law, specifically Federal Reserve Act.

1 comments

Right, so the point still stands. The Fed is granted the power to literally set the interest rate the US government pays on its debt. Laws that are created through human political means, not natural physical laws. The challenge is that there’s been such a dumbing down of political economic understanding that people have premised their understanding on ‘markets’ being some kind of divine natural law of the universe which blinds debate, arguably intentionally, away from what is possible to what satisfies vested interests
market is yes fundamental natural law of universe, and no matter how you try to trick it through political laws it will bite back in the end.
You’ve highlighted my point about the dumbing down of political economic debate. There’s very literal difference between “market is fundamental natural law of the universe” and any other belief that’s grounded purely in ideology. They have a role to play in resource allocation, yes, but the idea that resources are allocated optimally through blind belief is a poor substitute for critical thought about how they are and can be harnessed, and what effect that has on the real world. One that exists outside of a bunch of bits in a database. It also allows the folks who do have influence over the laws that govern markets the ability to lean on the scales to their own favour