Former Chairman of the Board of Governors of the Federal Reserve System, Ben Bernanke argued that the way to speed up economic growth was to create a consumer "wealth effect" and this would drive consumption spending, which would lead to business investment, and so on and so forth.
The support of this argument came from his academic research, among other things.
Well, in the first instance, Mr. Bernanke was very successful in his tenure as Chairman of the Fed. We read in the Wall Street Journal, "U.S. Household Net Worth Hits Record High."
"Americans' wealth hit the highest level ever last year…reflecting a surge in the value of stocks and homes that has boosted the most affluent U. S. households."
Mr. Bernanke was a success, after all!
Well, at least it appears so.
But, there are rumblings on the sidelines. For example, Andrew Smithers writes in the Financial