Yes folks,.....everyone be sure to take your financial advice from an expert like Evince. Now there is a woman who KNOWS!
0.25 interest rate hike
- Thread starter evince
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Yes folks,.....everyone be sure to take your financial advice from an expert like Evince. Now there is a woman who KNOWS!
I will add this though. It matters what part of the country you were in. We were in great shape here. Not everyone was so lucky. Heck...we didnt even have to wear masks.
evince
Truthmatters
People left the economy and stopped working because they realized they could manage without having the entire household working a job
People got creative and began being more entrepreneurial
That is why labor has changed
People are retaining these attitudes and practices
It will continue
Labor will have more power even as things settle down
It was a reset for people
I think in the end it will be a very positive reset of labor in the minds of average Americans
People got creative and began being more entrepreneurial
That is why labor has changed
People are retaining these attitudes and practices
It will continue
Labor will have more power even as things settle down
It was a reset for people
I think in the end it will be a very positive reset of labor in the minds of average Americans
evince
Truthmatters
Yes folks,.....everyone be sure to take your financial advice from an expert like Evince. Now there is a woman who KNOWS!
No idiot
I was saying read the FACTS and look to the experts
You are the one saying YOU know and fuck the facts and experts remember
oh - so you can see the future. wow - you are so fucking brilliant.
you should start a business since you know exactly what is to come
evince
Truthmatters
Geeko Sportivo
Verified User
Despite seven straight increases in just nine months, totaling a whopping 4.25 percentage points – a pace not seen since the Fed’s inflation fight in the 1980s – prices have barely slowed.
The Fed’s failure is partly due to events outside the United States – Putin’s war in Ukraine, China’s lockdown and post-Covid demand worldwide exceeding worldwide supplies of all sorts of materials and components.
But it’s also because domestic inflation is being driven by profits, not wages. And interest rate hikes don’t reduce profit-driven inflation – at least not directly. Instead, workers and consumers take the hit.
The labor department reported that labor costs increased 5.3% over the past year. But prices rose 7.1%. This means the real purchasing power of American workers continues to drop.
Forget the 1970s wage-price spiral when real average earnings continued to rise for much of the decade. Now, workers are taking it on the chin.
Profits have grown faster than labor costs for seven of the past eight quarters. Today’s price inflation is more a product of profits than wages.
Corporate profits surged to a record high of $2.08 trillion in the third quarter of this year, even as inflation continued to squeeze workers and consumers. Over the last two years, quarterly profits have ballooned more than an 80%, from around $1.2 trillion to more than $2 trillion.
Executives of big companies across America continue to tell Wall Street they can keep prices high or raise them even higher.
Not every business is raking it in, to be sure. Most small businesses aren’t sharing in the profit bonanza because everything they need for putting stuff on the shelves has gone up in price.
But the big ones have never done as well.
In fact, rather than slowing corporate price increases, the Fed’s rate hikes seem to be having the opposite effect.
It’s not hard to see why. If I run a big corporation, I’m not going to lower my prices and profits in the face of a pending economic slowdown. I’ll do everything I can to keep them as high as possible for as long as I can.
I’ll reduce my prices and profits only when the Fed’s higher rates begin hurting consumers enough that they stop buying stuff at my high prices because they can find better deals elsewhere.
Yet if I have a monopoly or near-monopoly – as is increasingly the case with big American corporations – my consumers won’t have much choice. If they want and need my stuff, they’ll continue to buy at the higher prices.
Of course, I’ll keep telling them I have no choice but to keep raising my prices because my costs keep increasing – even though that’s bunk because I’m increasing my profit margins.
Eventually, the Fed could raise interest rates so high that the cost of borrowing makes it impossible for consumers – whose wages, remember, are already dropping, adjusted for inflation – to afford what I’m selling, thereby forcing me to stop raising my prices.
But by this time, people will be hurting. Many will have lost economic ground. Some will have become impoverished. A large number of jobs will have been lost.
The Fed should stop believing it can easily stop profit-price inflation by hiking interest rates. It should pause interest-rate hikes long enough to see – and allow the nation to see – they’re harming workers and consumers more than corporations that continue to rake in record profits.
The government should use other means to tame inflation. Like what?
Like windfall profits taxes – as California’s governor, Gavin Newsom, has proposed for oil companies there, and Representative Ro Khanna and Senator Sheldon Whitehouse have proposed nationally (taxing the difference between the current price of oil per barrel and the average cost between 2015 and 2019).
Like tough antitrust enforcement aimed at reducing the pricing power of big corporations (as Lina Kahn is attempting at the Federal Trade Commission and Jonathan Kanter is trying at the antitrust division of the justice department).
Like a new antitrust law that allows enforcers to bust up big corporations (and prevent them from buying other businesses) when they’re powerful enough to continue raising their prices higher than their costs are rising. (Could Republicans in Congress be coaxed into supporting this? I believe so.)
It’s important that Americans know the truth. Seven Fed rate hikes in just nine months have not dented corporate power to raise prices and profit margins.
Which is why the Fed is putting the onus of fighting inflation on workers and consumers rather than on the corporations responsible for it.
This is wrong. It’s bad economics. It’s insane politics. And it’s profoundly unfair.
evince
Truthmatters
Yes the corporations are being assholes
They always are unless we pin them in with the proper regulations on their actions
The republicans have worked for decades to deregulate everything they could
Regulations would help greatly
But the facts are we can’t put them in place because the republicans cheat to win elections which means even when we WIN FULL CONTROL our numbers are small enough for the republicans and assholes like Manchin to prevent us from correcting all the tools we need to fix things
They always are unless we pin them in with the proper regulations on their actions
The republicans have worked for decades to deregulate everything they could
Regulations would help greatly
But the facts are we can’t put them in place because the republicans cheat to win elections which means even when we WIN FULL CONTROL our numbers are small enough for the republicans and assholes like Manchin to prevent us from correcting all the tools we need to fix things
evince
Truthmatters
He refuses to answer because he has no real beliefs
evince
Truthmatters
Yes folks,.....everyone be sure to take your financial advice from an expert like Evince. Now there is a woman who KNOWS!
Which school of economics is closest to your beliefs?
There is no economic reason to raise interest rates at this time because the economy is not overheating (still below 3% annual growth) and the job market is tight.
There are times for rate adjustments, but right now is not the time for it....there's no economic reason to do so. Increasing interest rates will only have the effect of reduced consumer spending, particularly in housing.
And if the housing market tanks again because the Fed hates workers with leverage, then we will simply have a repeat of what happened in 2008-9.
Geeko Sportivo
Verified User
All that information I got from various newsletters of Robert Reich, a former US secretary of labor, is professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now.
I should have quoted him, and that's my fault, so I'll forward your thanks for my post to him!
Thanks again!
What exactly is unbalanced? I don't know what you're getting at.
evince
Truthmatters
https://en.m.wikipedia.org/wiki/Jerome_Powell
Powell is very competent and doesn’t see things from a partisan framework
You have to remember he has information that we can not get in our hands
Future prospects that can effect the results of anything he does
Powell is very competent and doesn’t see things from a partisan framework
You have to remember he has information that we can not get in our hands
Future prospects that can effect the results of anything he does
They want the economy to fail, so they do not feel like such losers themselves.
It is a risk, and even beyond a risk, it is many times a certain loss. Imagine if you own a restaurant and had to keep staff on while closed. That is a major loss.
It is interesting that Stone gave a link listing all the states and how many PPP loans they got. Florida got a lot, but Stone also claimed Florida had no problems. Odd how that works.
evince
Truthmatters
The imbalance of workers willing to work for the prevailing wages and compensations is a type of imbalance
Yes that gives workers an edge
But with the correct regulations on compensation minimums
Regulations are a big part of what we need
Laws to protect the people from the oversteps of industry
Every time we try the Republican election cheating keeps it off the table
Things need to be done to stop the cheating so we can do the things that are good for the nation
But the republicans keep the corporations in control
evince
Truthmatters
They want it to fail because The wealthy can make money either way
They can further consolidate the wealth
You were taught macroeconomics at a young age? You want to economy to always pay yourself first? That is not even good microeconomic advice, much less macroeconomic advice.
When starting a business, it is best to build equity, rather than trying to get yourself money up front.