There is that propensity in Greenspan's thinking, which finds encouragement with the way the Fed is established. Remember the Fed is really a private institution, which had been given its monopoly powers over the management of the nation's money by the 1913 Federal Reserve Act. Populists always have complained about the Fed, sometimes for the wrong reasons, but always knowing the 12 districts are presided over by presidents who were not elected by ordinary people. The board of governors is chosen by the President with the consent of the Senate, but the folks in the field come without even that political connection. There is an automatic institutional bias in favor of capital against labor.
Labor does best when capital is in abundance relative to labor.
Capital prefers an abundance of labor, so it can pick and choose, hiring the least desirable last, if ever. When the nation is on a gold standard, capital has no choice. When the Fed is on a Gold Standard, it cannot be on a Greenspan Standard. It must supply the liquidity being demanded by the marketplace, no matter how short the unemployment lines get. The President of the New York Fed or the San Francisco Fed or Boston Fed could not call Greenspan and tell him to raise interest rates to slow things down.