Letter: Fed's policies hurt savers
Federal Reserve Chair Janet Yellen rightly decries the extent of and increase in inequality in the United States ["Fed chief warns of widening income gap," News, Oct. 20]. This trend runs counter to America's historical identity as a land of opportunity for all.
Yet, Yellen's own monetary policy, which broadly follows that of her predecessor, Ben Bernanke, is actually contributing to wealth and income inequality. The Fed's policy since the start of the Great Recession has caused interest income to fall by more than $600 billion, because of emphasis on near-zero interest rates and quantitative easing -- which the Fed recently ended. This represents a significant reduction in disposable income.
Fed policy seems to think that the loss of savings income is compensated by a rise in the value of stocks and bonds. This points to an unintended outcome -- since millions of senior citizens rely on their savings income. Such people tend to be very conservative investors who will not be pushed into riskier investments. Rather, they tend to stick with bank deposits, CDs, money market accounts, etc., and adapt to their lower (close to zero) interest income by spending less.
In this regard, Raghuram Rajan, the former chief economist for the International Monetary Fund, appropriately described the Fed's policy as "expropriating responsible savers to favor irresponsible banks." He urges the Fed to raise rates on savings, and I agree!
Yellen's heart is in the right place, but her policy is not.
John Lombardi, Woodbury
Editor's note: The writer is an emeritus professor of economics at LIU Brooklyn.
Heckscher Park an 'abomination'
Regarding Suffolk County Executive Steve Bellone's plan to have the county's first marathon start and finish at Heckscher State Park ["Dislike new Suffolk marathon route," Letters, Oct. 10], I have only one comment. Has Bellone ever been there to see the absolute disrepair this park is in?
What should be a county and state treasure is instead an abomination. The pool has been a disgrace for years, and many parking lots are closed.
Elizabeth Gallagher, Great River
Traffic cameras take away discretion
I've been a police officer on Long Island for 11 years, and targeting aggressive and drunken driving has always been a top priority for me ["Traffic court offers lessons," News, Oct. 26]. I was the victim of a wrong-way drunken driver in 2011 who seriously injured me.
I've read countless articles about the pros and cons of traffic enforcement by cameras. The cameras have some good points, however using them to enforce simple traffic laws takes away the discretion of the law enforcement officer and angers motorists.
I stop motorists daily, and more often than not I can check their license and registration, make sure their insurance is up to date and give them a warning. Traffic tickets are issued by most law enforcement officers when they are deserved, not for a minor speed violation, or a slight roll through a right-on-red intersection when all is clear. Most officers would not even stop a motorist for that.
A warning can go a long way sometimes, and we are all guilty of a traffic infraction every once in a while.
Vincent A. Rantinella, Ridge
Editor's note: The writer works for the East Hampton Town Police Department.
The article "Camera fines add up fast" [News, Oct. 19] drove home an important point: Many people are ignorant of vehicle and traffic laws, and the onus is on them to know it.
The red-light and speed cameras are the easiest things to defeat. Observe the posted speed limit around schools, and do not take a chance making a right on red at camera-protected intersections.
I will no longer make a right on red at such an intersection, regardless of the circumstances. These days it could be a sign missing that prohibits the turn, or not counting off the unknown number of seconds required to fully stop, that causes a summons to arrive in the mail. It's not worth the risk.
Yes, I have had people sound their horns and flash their headlights at me, but so be it. Maybe they enjoy the risk and already have a few tickets, so one more for them is a nonissue. I have better uses for the money than to prop up a failed county government.
Robert G. Schaffrath, Glen Head
Since most of us agree that the speed-zone cameras are nothing but a chance for the counties to increase revenue, let's put the money where it belongs. Give half the money to the school district where the ticket was issued. Schools need tax relief also.
Peter R. Wunsch, East Northport
Editor's note: The writer is the former president of the Commack school board.
