[quote=FlyerInHi]Social policy is the domain of Congress. They can pass laws to deal with wages and social inequality. Bernanke himself said that Congress should act along with the Fed.[/quote]
True, but they intersect. Pumping money into the economy when there is nowhere for it to go (people will not start or expand their businesses when their customers are going into survival mode) will create bubbles.
The government can offset this to some extent, but if the political will is not there, it won’t happen. They should have been clamping down on speculation, putting more money into energy and healthcare R&D, rebuilding our infrastructure, etc. They did some of that, but not nearly enough, IMHO.
