Robert ReichMar 10, 2023

Wages grew only 0.2% from Jan to Feb according to today’s jobs report.

Translation: Were not dealing with a “wage-price” spiral — wage gains pushing up prices.

We’re dealing with a “profit-price” spiral — corporate profits driving up prices.

Stop raising interest rates.

Jason Fink, MD, MPH, MHAMar 10, 2023
Show threadRobert Reich
The best remedy for the current inflation is a combination of a windfall profits tax, price controls, and antitrust enforcement to reduce the pricing power of big corporations — not higher interest rates that will slow the economy, cost jobs, and reduce wages even further.
Mar 10, 2023 at 6:26pmWeb
Show threadPort City StudiosMar 10, 2023
@rbreich So let’s say the Fed slows growth to 2%. Are we going to go through another 30 years of no wage growth? What does that accomplish?
Show threadDarwin WoodkaMar 10, 2023
@rbreich how well do higher interest rates work in an era of bank failures
Show threadJason Fink, MD, MPH, MHAMar 10, 2023
@rbreich 100% this. The main driver of inflation appears to be the record profits due to the ever-increasing prices of necessities. It's an ouroboros driven by wealthy corps & people.
Show threaddecitectMar 10, 2023
@rbreich Carter & late-70s Fed tried that, right?
Show threadDomMar 10, 2023
@rbreich break up all the big corporations. We live in a world of false choices. Wake up people!
Show threadGlennMar 10, 2023
@rbreich I think that taxes on corporate profits should be progressive. Once a corporation has a couple of billion available do a stock buyback, or CEO bonus, tax them at 75%. When faced with that situation the corporations would make investments in people, internal systems, and market share (lower prices). Example: If Southwest Airlines had faced a 75% tax on its profits, it would have invested in the updated computer systems that it knows it needs.
Show threadReginald GoodwinMar 10, 2023
@rbreich But, that’s precisely what American oligarchs want. They want us anxious, panicked, and working for the lowest wages possible. Their Nirvana was the free labor of slavery.