THE LATEST NEW PUBLIC POLICIES AND THEIR UNFAIR SOCIAL COST

Abstract

The objective of this work is to discuss and measure the social benefits and social cost of our new public policies (monetary and fiscal). By using different policy rules, we measure the appropriate federal funds rate and the bail out and bail in cost of these “progressive” policies. The benefits, lately, are insignificant and the social cost enormous and the reason is the incompetence, the corruption or the control of the policy makers, as it is going on since the British (1640) and French (1789) Revolutions. The science of Economics (Oeconomicos) is known since the Works and Days of Hesiod (8th century B.C.). The policy makers know what the true objective of their policy is, but they cannot satisfy it, which is the maximization of the social welfare, the wellbeing in every sector in the lives of the citizens of the country. There is a need to fix all these dysfunctional institutions and our democracy. What their new liberal public policies have caused to people is just uncertainty and an enormous social cost. We must go back to our traditional policies and to our 3,000 years old moral value system and the 2,000 years old revelation by preventing crises, preserving peace, respecting human lives, and satisfying the current and eternal needs of all human beings (persons).