Mr. Bernanke’s description of QE3 as a “‘Main Street’ policy” is incorrect. The Fed distributes its newly created money by buying securities from large financial firms. These businesses receive the dollars before anyone else in the economy and thereby become relatively wealthier than those without their close political connections.
Small businesses on Main Street get the new money last, if at all. As Mr. Bernanke has long complained, his bank buddies aren’t lending the money he’s making. Worse, food and energy prices continue to rise, which cut into lower-income budgets the most.
QE3 is carefully designed to help Wall Street first and Main Street last.