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.

Show threadRobert ReichMar 10, 2023
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.
Show threadGlenn
@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.
Mar 10, 2023 at 7:54pmWeb