Robert ReichDec 4, 2022

RT @[email protected]

The Fed has been hellbent on raising interest rates to slow the economy. That completely puts the burden of fighting inflation on low-wage workers and the poor.

Meanwhile, corporations are getting off scot-free as their profits hit a record $2.1 trillion in Q3.

Hello?

🐦🔗: https://twitter.com/RBReich/status/1598833140549619712

Robert Reich on Twitter

“The Fed has been hellbent on raising interest rates to slow the economy. That completely puts the burden of fighting inflation on low-wage workers and the poor. Meanwhile, corporations are getting off scot-free as their profits hit a record $2.1 trillion in Q3. Hello?”

Twitter
Show threadQuestDec 4, 2022

@rbreich

"The Federal Reserve System has been given a dual mandate—pursuing the economic goals of maximum employment and price stability."

https://www.stlouisfed.org/in-plain-english/the-fed-and-the-dual-mandate

The untolded goal is preserving the USD at all cost. It is a faith based system and they will due everything to try to keep that faith. The human capital cost (ie lives) is just collateral damage in pursuit of keeping the faith using their one tool in the toolbox.

Jpow's lastest speech:

https://m.youtube.com/watch?v=5s6ZihWKyhw

The Fed and the Dual Mandate: In Plain English

The Federal Reserve System has been given a dual mandate: pursuing the economic goals of maximum employment and price stability.

Show threadQuest
@rbreich
In that speech JPow does suggest wages aren't the cause of inflation. He also expresses concerns of a wage spiral driving inflation up when and if workers realize that their wages aren't keeping up with cost of living increases.
Dec 4, 2022 at 3:07pmWeb
Show threadQuestDec 4, 2022
@rbreich
"The Economists' Hour: False Prophets, Free Markets, and the Fracture of Society" by Binyamin Appelbaum. I think it was in this book that I saw a quote from Janet Yellen suggesting that some inflation is good because it reduces the effective labor cost for business bc wages increase at a lesser rate than inflation. It creates the facade of getting paid more while the company effectively pays less.