Robert ReichJan 15, 2023

Inflation in the U.S. is being driven by profits, not wages. And interest rate hikes don’t reduce profit-driven inflation.

What they do is put the burden of inflation on lower-wage workers and the poor.

How about we target corporate profits, not working people, for a change?

Show threadBadtux the Snarky PenguinJan 15, 2023
@rbreich Corporate profits in the US are being driven by supply-chain & distribution distortions limiting supply available to people. Less supply, same wages, higher prices. If not for supply chain issues new competitors would arise to undercut the profits of the corporate looters.We need to fix the supply chain & distribution distortions, then the profiteers will find themselves unpleasantly out-competed.
Show threadBaron VonskinnbackJan 15, 2023
@badtux @rbreich unfortunately you can't do that whilst the world refuses to recognise that the pandemic is causing these issues, millions of working age people dead or unable to work due to damage caused by the virus, healthcare system under immense strain for people who can afford to use it, a prolonged and painful death or total bankruptcy for people who can't, what do we think will happen to the global economy now that China has allowed the virus to run free?
Show threadBadtux the Snarky Penguin
@Vonskinnback @rbreich Some short-term laws to address profiteering may decidedly be in order. As Reich properly points out, the current "inflation" is in fact profiteering, taking advantage of temporary supply chain conditions in order to hike prices for inordinate prices. In the long term they will be self correcting as new supply comes online. Of course, in the long term we're all dead.
Jan 15, 2023 at 9:17pmWeb
Show threadBaron VonskinnbackJan 15, 2023
@badtux @rbreich you are absolutely right, traditionally inflation was caused by spending pressures based on demand outstripping supply due to an abundance of disposable income, this was resolved by stripping that money out of the economy by raising prices, but this time round it is because of damage caused by an outside force putting pressure on the supply chain, but they still saw fit to strip cash from the population when there wasn't an abundance.