"Price stability" is an excuse to rip off the workers. With increased productivity the workers SHOULD be able to purchase more with their wages as a result of having PRODUCED more with their work under the new conditions. If the value of money to purchase labor remains stable the value of money to purchase manufactured goods should deflate, drastically, in proportion to productivity increase. The price of manufactured goods and many services should NOT be stable, but should drop. The workers should have a progressively higher standard of living, roughly commensurate with their higher standard of production.
Note that the second mandate these people are proposing to drop is near-full employment. Oops! That means they're throwing in the towel on ending the depression in order to preserve the progressive increase in the fraction of the value of the (remaining) workers' labor that goes to someone other than the workers. With improved productivity they don't need as many workers to keep their own standard of living up. The rest can starve and freeze in the dark - or go on the dole and vote Democrat.
Note also that there are no consequences to the Fed for failing to meet either of these alleged "mandates" but there ARE consequences to them for making, or failing to make, a profit on their operations. So the ACTUAL incentive is for the Fed to adjust interest rates to maximize the long-term transfer of wealth from the general economy to the member banks and their close associates. The only thing mitigating their operations is the need to keep the economy running well enough to produce more wealth for them to appropriate.
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"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."
That means: For each job "created or saved" about five were destroyed.
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