We learned last Thursday that the U.S. economy grew at an annualized 2 percent rate in the first quarter of this year. That’s well above economists’ expectations of around 1.4 percent.
But if you didn’t get this news, you’re not alone. Good economic news doesn’t make it through the negative sludge of Fox News or Newsmax. It almost doesn’t get through the mainstream media, either.
There’s more good news on the economy. In the four years of Donald Trump’s administration, total spending on manufacturing facilities grew by 5 percent. During the first two years of Biden’s administration, manufacturing investment more than doubled. And about 800,000 manufacturing jobs were created.
These remarkable results are the outcome of Biden policies — the Inflation Reduction Act and its green technology provisions, the infrastructure bill, and the CHIPS Act.
What about inflation? Biden’s stimulative spending did boost inflation. But the news that’s not getting through to most Americans is that inflation is dropping. It has declined significantly from its mid-2022 highs above 9 percent. Consumer prices are now rising by about 4.9 percent annually — still a problem, but not nearly the problem it was. Inflation in the United States is now well under the levels in European nations that made no comparable efforts to stimulate their own economies.
I continue to believe that much of the remaining inflation is due to the outsized profit margins that many major businesses have seized for themselves. Even the IMF recently found this. I wish Biden would make an issue of those profit margins. They’re enriching those at the top while imposing a big penalty on everyone else.
And wages? For a while, real (adjusted for inflation) wages really were falling, and many economists were worried about rapidly rising unit labor costs. But now that inflation is subsiding, unit labor costs are moving in the opposite direction, and real wages are picking up again.
So why do so many Americans continue to think the economy is awful? According to the Gallup economic confidence index, Americans haven’t felt this bad about the economy since the global financial crisis in 2008 and 2009. In an NBC News survey conducted a few weeks ago, at least 74 percent of Americans said the country is on the wrong track. The University of Michigan’s Consumer Sentiment Index is also pessimistic.
Given all this, it’s not surprising that Joe Biden’s approval numbers have been stuck at around 43 percent. That’s bad news for an incumbent president running for reelection. History shows that presidents tend to lose reelection bids when about 70 percent of Americans think the country is on the wrong track. They tend to win when fewer than half of Americans think that.
So the obvious question is, why are Americans are feeling so bad about an economy that’s relatively good?
One reason, I think, is a general sense of dread — centering on Trump, DeSantis, and Republican lawmakers in Congress — that seems to affect everything else. (I don’t know about you, but I sometimes have difficulty getting to sleep, worried about the rise of authoritarian fascism in America.) A recent study found that headlines have grown starkly more negative, conveying anger and fear.
Then, too, there’s a kind of national pandemic-related PTSD from which many of us are still suffering. Add in the effects of climate change (this week, the earth’s average temperature reached the highest on record).
But I think the deeper reason Americans don’t feel very good about the economy is that is that the vast population of working non-college grads — some two-thirds of Americans — are still bogged down in dead-end jobs lacking any economic security, while struggling with many costs (such as housing, child care, and education) that continue to soar.
In other words, the economy is getting better overall — but overall has become a less and less useful gauge as the rich get richer, the poor grow poorer, and the working middle is under worsening siege.
What do you think?
(See you tomorrow for my last class, ever.)
You summed it up Mr. Reich,
“In other words, the economy is getting better overall — but overall has become a less and less useful gauge as the RICH ARE GETTING RICHER, the poor grow poorer, and the working middle is under worsening siege. “
Until the RICH start sharing their wealth we will continue down the same road!
The RICH will never share. They will hold on to their wealth unless they are TAXED! How’s that for a novel idea?
We have a collection problem. According to multiple sources, we leave about $7 trillion on the table over 10 years. When I posted this in NYT yesterday, I got 1222 hits.
If I were a billionaire, I'd spend big money to lobby to collect current taxes, rather than lobby to prevent new taxes, because there would be no need for new revenue.
Billionaires should not exist.
I don't begrudge rich people. I play the lottery about 2 times a week.
I resent those who do not pay their fair share, especially those who flaunt their wealth and disrespect the rest of us as if they are superior and entitled.
The fastest way to save the economy is 1. collect taxes that are due and penalize criminal conduct and 2. sue price fixers and price gougers.
I know that I sound like a broken record but I think foreign interests, especially Saudi and other oil interests like Russia have been undermining our economy since Nixon let the dollar float. In reality OPEC fixes US oil prices. We can thank them for inflation. I think that besides an economic issue, this is a national security issue. We don't control Congress in large part because Saudis and Russians have been supporting Republicans like the Bushes and Trump. .
@Daniel Solomon, the tax code comes up for revision in 2025. Congress could reverse the egregious provisions of the 2017 tax legislation. Congress could decide to tax capital gains and dividend income the same as individual income and kill the carried interest tax loophole,. Congress might also sprout wings and fly, I know. But the tax code debate has already begun.
Why stop at 2017? The widely yawning deficits began with the two Bush 43 tax cuts back in '03 or so, if memory serves. Remove all of them since Shrub took office and the nation is much closer to a balanced budget.
Because the tax code of 2017 is the law that is up for sunsetting. I am personally not concerned with a "balanced budget." If we unpack that phrase we will get very confused very quickly. Balanced by when? Why? With what revenues? From what sources? What we want, this planet and its occupants, is a sustainable economy, where economy means based on the carrying capacity of the planet and our atmosphere. And that is not consistent with any of the scenarios on the horizon. Here: https://scied.ucar.edu/learning-zone/climate-change-impacts/predictions-future-global-climate. So this is the reality with which we have to live, no fantasies, no optimism, no unknowns.
Martha, we agree that refusing to continue the 2017 cuts is right. To do so requires a majority of politicians supporting that. If you have enough to say no to continuation of those tax cuts, I'm suggesting that the aim could be higher to remove the others from Bush 43 too, and see what's possible.
Prior to Bush 43's tax cuts, the Clinton administration had a growing economy, low unemployment and budget surpluses with higher rates. Since that's our experience, those earlier rates proved they work to fund and operate government without borrowing and at minimum balance the budget. By raising tax rates back to pre-Bush 43, you don't need as much revenue to get to the same end. Less needed revenue, means less production and consumption necessary to get your funds, which benefits our environment.
Got probabilities?
Oh, slim to none of course. lol It was just a suggestion to shoot for the moon if the one was possible.
The right-wing trope that the federal budget needs to be balanced is just so much gaslighting - on par with, perhaps even worse than, "trickle-down" economics.
The simple truth is that by running deficits and financing them with overseas money, the US has become too big to fail. We *own* the bank. We have a geopolitical lever that makes hot global war less likely. US debt is a stabilizing force in the global economy. Balanced-schmalanced
@John M. Kelly, very interesting and thanks - I'd like to know more.
This comment will age like fine wine, LOL You really believe a constantly growing deficit is a good thing? The CEO of JPMorgan Jamie Dimon disagrees with your opinion. https://finance.yahoo.com/news/jamie-dimon-says-mounting-us-050516886.html
No. As I explained in my comment I think *maintaining* a large deficit is a good thing.
I think electing Republican idiots who *grow* the deficit every chance they get in order to fund tax giveaways to billionaires is a bad idea.
And I don't give a flying f*ck at a rolling donut whether Jamie Dimon disagrees - he's a self-serving dinosaur. I think he needs to pay A LOT more taxes.
I’m middle class. Please don’t tax my meager investment gains. Only those who make over $2M then tax away. No one really *earns* more than that.
Billionaires are using the people to earn their money. Change my mind. They should NOT EXIST!
Ralph : I Agree! They are sucking our blood while they ruin the environment! They normalize butchery and fascism.
Laurie, you're right about too many billionaires supporting fascism and all that entails including pushing for war, because war makes billionaires even richer and feeds their power and money habit). We could definitely do with many fewer billionaires. I know I would be told we need them because of innovation. Innovation among billionaires does happen occasionally, but it also happens among working-class workers too and they don't try to destroy our democracy on behalf of their innovations.
Ruth Sheets ; Especially when someone like Elon Musk used government subsidies to develop his Tesla automobile ; money from taxpayers, and works against Democracy. Like Bernie Sanders has pointed out, the big pharma companies did the same when they developed their drugs and now gouge with very high prices, sick patients, or even deny the medicines by pricing them out of reach. Meanwhile, other countries offer then at much lower prices.
Couldn’t agree more. I also agree that war makes billionaires (prob trillionaires, now). IMO war is about land grabs and profit (with a few perks for the soldiers like rape and pillaging) and always has been.
That is why extreme wealth Inequality should not exist! The Bought up 'Supreme' Court has blocked Intelligence surveillance of platforms on the internet where the next coup can be plotted. Seems that would interfere with sacred free speech of those who have already attacked the "People's House': our Capitol! Big Money bought these Judges who enable criminals and fascists!
I agree Daniel Solomon, that 'being rich' is not the problem. Obscene wealth is.
Daniel Solomon: A billion is too much money. Multiple billions create a Musk, who can own a major internet platform, allowing bad guys to plan insurrections and other Un Democratic events. (And get away with murder.).
The Saudis can influence our elections by strategically timed cuts or increases to oil production, thereby increasing or decreasing prices at the pump.
IMHO Trump has been illegally dealing with them. As president he was forbidden from outside work.
What he was forbidden to do didn't stop him between 2017-2021, for sure it's not stopping him now.
He's good at gaming the system (any system). It's what grifters do.
I have almost stopped blaming donald trump for the crimes he commits. No one is doing anything to stop him. He very well COULD shoot someone on 5th Avenue and get away with it! No one has ever dared to stop him. Merrick Garland just doesn't have the teeth to put trump behind bars. Unless and until the law applies to EVERY everyone, equally, the rich will get richer and the poor will get poorer.
I'll never stop holding TFG responsible for his actions, but I agree 1000% with everything else you say. 🙂
Daniel, you are right about the foreign influences and with the PACs that don't even have to report who has given money to them, there is a lot of it. Ending PACs and forcing the name of every single individual and group and individuals within a donor group to be known for every dollar donated to any organization would be a good start. I don't see Republicans doing that, though because they benefit so much from the foreign money. I am sure Dems are doing it too, but I suspect not in as large numbers. Dems could be more easily shamed into stopping the behavior if people in the nation actually knew just how much foreign money is in our elections and legislative decisions. Republicans these days have no shame!
Saudis and Russians; some are multi billion dollar investors in some large American companies and investment funds.
That gives them influence over corporate campaign contributions.
- money has voice - Citizens United amendment 2010
It's not so much 'cloak and dagger' but rather in our face capitalism.
And it's the law - they have the right to particpate in our elections through this back door. It's the law.
It's the 3/5 antebellum rule of law.
They have more money than we have people who vote.
We, my dear citizens are out voted.
Hope you enjoyed the democracy while it lasted.
Federal law prohibits contributions, donations, expenditures(including independent expenditures) and disbursements solicited, directed, received or made directly or indirectly by or from foreign nationals in connection with any federal, state or local election. https://www.fec.gov/help-candidates-and-committees/foreign-nationals/#:~:text=Federal%20law%20prohibits%20contributions%2C%20donations,federal%2C%20state%20or%20local%20election.
The FEC is Allowing Foreign Money to Influence Our Elections https://campaignlegal.org/update/fec-allowing-foreign-money-influence-our-elections?gclid=CjwKCAjwzJmlBhBBEiwAEJyLu69DQwvs-3b7S0Ckpc-vEv1QUXKditZ9KGu1r5vmY-vm05tOUv0DIhoCx1sQAvD_BwE
Thank you for the links.
As a retired carpenter I was suspicious when I read an article about Saudi influence on the board of a couple trillion under mangement outfits. I figured they had found away around
the FEC stuff. It figures every congressman and senator seems to be on 'their' retainer.
Bipartisan ship works. If you've got money and take them on vacation, sometimes with you.
ALEC must spend alot of time translating what they want for araibic and russian to english.
And there you have it: Citizens United. We aren't outvoted, we're gerrymandered and rigged out of a voice.
That's up to Congress to correct. And it's up to us to elect people who will do it.
I enjoyed the illusion of democracy too. But I won't give up on the hope that we can restore it, maybe even approach something that isn't an illusion because now many, many more people know that what we've had IS an illusion.
PS. Besides Citizens, there's the pesky issue of systemic racism.
What good will it do to tax the wealthy, unless it is directly dedicated to helping the people.? As it stands now, the government will just p--- it away on further bloating the military and pet projects to favor its corporate masters.
Bandar Bush and the useful idiot!
Didn’t the House greatly REDUCE money for the IRS as part of the Debt Ceiling negotiation?
I don't begrudge rich people either. I do despise arrogant, entitled assholes who believe that they made their wealth on their own. Their accumulation of wealth only exists because the rest of society *suffers* it to exist.
If society were to burn down tomorrow (as the Steve Bannon aligned cabal appears to want it to) the tumbrels will roll for many of today's wealthy like they did during the French Revolution - except perhaps for those who will die slowly in their bunkers.
Bob & Beckie Mercer know this, as do people like Barre Seid and Peter Thiel. These old farts are dying off as fast as the Devil can take them, but I feat it isn't fast enough to save us.
I don't like those who flaunt their wealth on noisy cars and noise generating "mufflers".
You think anyone in the "MAGA crowd" can hear??
Yes, especially when money is speech. And too much wealth allows people like Harlan Crow buy a 'Supreme Court ' 'Justice'. Or a Congressional seat, or two: or four.
Ralph, or at least, not for long. Billionaires are pretty useless these days because they may claim to care about this nation and our planet blah blah blah, but in reality, they just feed their addiction to money and power. We need a "tough love" intervention for billionaires, even super millionaires who just can't manage to stop using their bucks to hurt and buy others.
I agree. No one individual needs a billion dollars let alone even knows really what to do with it. Good examples: Elon Musk (Twitter for one thing) and Jeff Bezos and his treatment of the people that work for him. It's Robin Hood in
reverse. The world society in general has some kind of evil covenant to allow the rich to rob the poor. It simply has to stop!
I think Cuba sounds like a good place for you to live. Better bring the keys to a 57 Chevy because that’s what you’ll be driving. Enjoy your stucco house that hasn’t been painted since JFK was shot and you live with your extended family.
Campaign reform and abolish Citizens United. We The People must have equal measure of power.
70% of Americans think the country is on the wrong track. But 70% of Americans think there lives are going in the right direction.
A lot of the problem is the media and messaging. It’s not just Fox, it’s social media. Probably 20% of Americans read a newspaper.
It's basically ALL mainstream media. ABC and CBS are all about both-sideism; MSNBC only touches on MAGA on shows that call themselves "news opinions" and CNN has gone so far left, I think we've come full circle to the right! I'm old enough to remember when cable news first started. It was called "Fox News Entertainment TV." Probably took a week for lazy America to stop saying the entertainment part and people who watched Walter Cronkite tell the real truth started believing Fox News was truth. The almighty dollar runs MSM, not the truth as it once did.
Possibly less than 20% of newspapers are worth reading.
Daniel, yes, we need the IRS to be fully operational to collect appropriately. They used their limited resources to go after working and middle-class tax problems instead of the very rich where one victory would have brought in more than most of those pathetic small cheaters and mistake-makers. We need to address both, but the rich will get us all more and start to move us toward a more equitable society. Go IRS!
What was that I heard about one of the major issues the New R Crazy Caucus wanted on the chopping block?
Oh right -- it was money to fund the IRS and its collection efforts.
Considering the Pentagon has not passed an audit in how many years? We need to know where the enormous budget appropriations for defense ie the military industrial complex have and continue to go. We really don’t have a clue. Ask any IRS agent; want to see apoplexy up close? 💵💵💵 is OUT THERE but please elaborate. The tax payers, you know, the little people are getting feisty, annoyed, upset......they need to know. Too few agents to process a massive audit? STOP THE MONEY PIPELINE UNTIL IT IS COMPLETE. Get their attention off their “too small paychecks” the excuse given by everyone post pandemic
Actually, they audit everything. But they lost maybe a $ trillion and most Afghanistan and Iraq was off budget during the GWB administration.
https://www.dodig.mil/reports.html/
Oh my...
Thank you. I’ll look into that. Have I been reading fake news again? Do my best but it’s getting more challenging!
WOW; great stuff there!
Daniel—PLEASE cc all your comments to your now-wasted Notes from Baghdad by the Sea so we can read you without having to wade through so much dross.PLEASE!
What sources?
Can you imagine!?
You mean taxed by their pawns in Congress? Unlikely.
Maybe one country in the history of the world that attacks themselves into prosperity
That’s true. They are somehow believing that they “can take it with them,” and it’s just that they haven’t figured out how to do so.
The rich will never “share” their wealth and shouldn’t be asked to. They should be taxed to contribute their fair share to our economy and if they cheat, then the IRS should audit them and make them pay. There are far too many loopholes for the wealthy to get out of paying their taxes. And the IRS continues to be underfunded, thanks to the recent irrational demands of the right-wing crackers in the House of Representatives.
Our community lost another plant and jobs to Mexico. We will probably see more pickup trucks without mufflers racing around our neighborhood with the US flag and the don't tread on me flag. We still don't have single-payer universal health care. I see more Berkshire-Hathaway signs in front of homes. The price of eggs is lower, though.
Keith, you are right, so how do we start siphoning off some of that wealth from the far too rich and move it to those who need it? With the filibuster and a racist old white guy wielding it, and a child-man "leading" the House, it is not likely anything positive will happen in that direction until people start to notice who is really causing their pain and struggle and turn their venom on Republican bad economic behavior and knee-jerk opposition to anything that will actually help the American people. Anger is powerful but often spewed in the wrong direction, toward the wrong people, especially when directed by a biased media who either are owned by or dependent on those rich folks for their existence, or believe they are.
When you spend less than you earn, and save the excess in a tax deferred retirement account, you can become richer than most people in the world.
Gerald, that only works if you earn living wages. A huge chunk of Americans do not earn enough to make basic ends meet. They are not being irresponsible with their meager earnings, yet they are the ones who are made to pay penalties on not earning enough to pay for their basic living necessities.
For example, if they use up all their earned income paying rent (barely), utilities, health insurance, food & basic needs groceries, transportation to & from work, etc. and they come up short, they get punished by being charged a penalty fee for not paying the full amount of whatever bill came short. Or they overdraft their bank account by $10 dollars trying to pay everything on their plate. The bank will tack on at least $50 in overdraft fees, and will continue to tack on fees until the account is made whole again.
But wait, so now, in addition to the rent, utilities, food & other groceries, health insurance, they now have to pay the bank a hefty penalty for not having enough money to cover their bills. Once they fall into that rabbit hole, it becomes nearly impossible to get out.
By design, this capitalist country financially penalizes low wage workers for not earning enough to cover their basic living costs.
Hi Rebeca. I agree with your description of those who cannot make ends meet, but the fault is not due to a "capitalist" country. When one borrows money (e.g. from a bank or a credit card company), the borrower agrees to accept the liability for non-payment. The problem is the borrower is borrowing. The solutions are for the borrower to (1) spend less by living with others, plant a garden, ride a bike for transportation, apply for SNAP, apply for low income housing support, live with parents, etc. and/or (2) develop a skill for which others will pay more money. The alternatives to a capitalist economy are socialism and communism. The U.S. is partially socialistic- examples are social security, SNAP, low income tax credits, low income housing, Medicaid, public schools, progressive income tax, etc. All these programs transfer wealth from those who produce to those who do not but need support. Not socialistic is the sales tax which is regressive. (Not reasonable is the capital gain tax reduction, which gains should be taxed as ordinary income.) Communism is where the state owns the means of production. In France, for example, the State owns part of Total a large oil and gas company (TTE). China is not a communist country because its people individually can own their means of production. Communism is a failure, as best shown by Cuba and the dissolution of the Soviet Union. Ownership of the means of production and a fair tax rate on profits has proven to be the strongest economic motivator in history, which is one of the reasons we are so rich in the U.S.
The controversial question for us is how much socialism should we have. But the engine that allows us to be rich as a country is capitalism. Within that framework, many can succeed including most of my ancestors who immigrated here without any knowledge of English.
Another strong economic motivator in history is colonialism and conquering other to steal their "stuff", such as when Memhet II conquered Constantinople, or when the Polish aristocrats controlled the land in Ukraine. This is the reason cities built walls. Now, sadly, we must build drones and rockets.
I like (and agree with) the Texas approach to sales taxes. Food and medicine are not taxed. The rest to shared by all with the understanding that the rich simply buy a whole lot more. Even when purchasing a car- the poor do not buy expensive cars and the rich (usually) do not buy the cheaper ones and the tax is based in the price of the car. I am in agreement that how much you earn is none of the states business. Fair is fair.
If you believe the rich should start sharing their wealth, why don’t you go in their garage and take 50% of what’s in there and see how that works out for you.
Again, as you said, simply and clearly: "In other words, the economy is getting better overall — but overall has become a less and less useful gauge as the rich get richer, the poor grow poorer, and the working middle is under worsening siege."
It doesn't FEEL like "the economy" is getting better if you're living hand-to-mouth while food prices are rising, if you're burdened with college debt, if you can't even think of buying a house because everything is overpriced and people who are wildly wealthy are paying cash, etc. "The economy" means what? The various measures tell us how well the financiers and the Silicon Valley Libertarians are doing, contributing little or nothing in taxes.
But that is not on the US President, prices, wages, profit margins are all controlled by the big moneyed corporations, not the US President.
Americans continue to be confused over who the villain of this story is.
Rebeca, In my view, because politics largely is perception, if everyday people are living precariously from paycheck to paycheck, wherein family income is only sustained by more people working longer hours, while weighted down by mortgage debt, credit card debt, and the like, the blame for the seemingly limited opportunities afforded them by a social and economic system largely beyond their individual control, fair or not, tends to be pinned on political leadership.
Postscript: As I wrote to Daniel, who is part of this thread, if we fail to recognize and engage with people’s misguided perceptions, we fail to do so at our own peril.
Like the price of eggs. Few people mention the worst avian flu on record decimating chicken populations as the reason for their high priced eggs. Also, high food prices are attributable to lengthy transportation routes from the locations which we source our food. The country’s perception of fresh food is distorted as we tend to cater to our grocery store desires to consume what we want anytime we want.
Misguided perceptions are only fixable through dialogue(verb). People speak to hear themselves instead of communicating to understand and or arrive at the best conclusion/option/strategy
@Korbtronics, Focusing specifically on your second paragraph, which I largely appreciate, I merely would add, that when people who hold different views genuinely feel they are being listened to, they typically, though not always, are more receptive to, themselves, listening.
I agree. Listening is skill we all could use daily practice in. “Two ears, one mouth, use them in that proportion” is what my father has always said to me(believe this is derived from a quote from the Greek philosopher Epictetus).
Back in the days, the US Government did have control over pricing of basic food necessities such as eggs, milk, bread, etc. There were caps set to make sure Americans were able to afford basic necessities. Then Congress eliminated all price controls, handing over the keys to the price box to the big moneyed corporations. Nobody noticed, nobody said peep.
Yes, the avian flu and gas costs contributed to the egg price hike, but when those issues are resolved, such as lower gas prices & nearly eliminating avian flu cases, the prices didn’t go back down. No, prices continue to rise.
It’s corporate greed and a woefully misinformed & under educated consumer base who continue to buy eggs at $8 a carton. The greedy corporations tested the exorbitant price hikes during COVID, and the consumer market bowed down & paid. When things began to get better, lower gas prices, the allowance of raw materials into out ports ( except the anti vaxxer truckers caused more supply issues by striking), the prices never were rolled back, instead, they’ve continued to rise.
"Hence is it that we make trifles of terrors, ensconcing ourselves into seeming knowledge, when we should submit ourselves to an unknown fear.." All's Well That Ends Well, Act 2, scene 3.
All's Well is one of a series of "bed trick" plays. In Shakespeare, the nobles are the people who are most easily fooled. Now the audience is easily tricked. Fools rush in....
Daniel, To be clear, my comment derives not from my beliefs but from my observations. As another example, while those of us who pay attention understand that the human infrastructure piece of the Biden agenda failed to pass because of 2 purported then-Democratic Senators, the same everyday people I referenced in my comment, for whom said legislation would vastly have improved their lives, typically don’t make that same distinction.
Postscript: If we fail to recognize and engage with people’s misguided perceptions, we fail so at our peril.
I realize that, however, this is a capitalist on steroids country, meaning the ones controlling the economic system are not the politicians, although they’d like you to believe they do, its again, the big moneyed corporations, who not only control our economy, but the politicians as well.
Media doesn’t help as they perpetuate the common misconceptions on who controls what in this country.
Rebeca, Thank you for your reply. I would add, barring an occasional word from President Biden calling out corporate gouging or the occasional congressional hearing unearthing data confirming that the biggest driver of inflation is corporate pricing, I am troubled that Democrats, overall, have declined to enact a united, laser-focused effort to expose how corporate profits account for over half of the increased prices people are paying.
While some might defend a party’s reluctance to bite the hand that feeds it, I believe the benefits of pinning corporate pricing as the biggest driver of inflation would outweigh the costs. I further contend, with 60% of the people in this country living paycheck to paycheck and millions working for starvation wages, not only should Democrats not ignore this biggest driver of inflation; they should make it clear to working families throughout this country, many of whom are prepared to vote Republican, that if they vote Republican, the Party that has been silent on this issue, their vote will run counter to their interests and concerns. In a word, we need Democratic leadership to be focused and disciplined and not to allow Republican deceptions and distortions related to the state of the economy to go unanswered.
Yes, until the real villain of the story is screamed out continuously by the democrats and the media unfortunately Biden will be the villain in the eyes of the poor and middle class. This is sad because President Biden is the one looking out for their best interests! Wake-up Americans!
Actually they have quite abit:
Economic Stabaization Act - Richard Nixon.
Whip Inflation Now - Gerald Ford.
Economic Stimulation Act - Jimmy Carter.
Executive Order 10340 - Harry Truman.
Gerry, do you have any data that proves these “Acts” actually made a positive difference in Main Street’s economy? I am guessing probably not, as nobody bothers to measure the economy of Main Street.
My data is from wikipedia - my source for this one president Nixon.
Economic Stabilization Act of 1970
- authorized the President to stabilize prices, rents, wages, salaries, interest rates, dividends and similar transfers[3] as part of a general program of price controls within the American domestic goods and labor markets. It established standards to serve as a guide for determining levels of wages, prices, etc., which would allow for adjustments, exceptions and variations to prevent inequities, taking into account changes in productivity, cost of living and other pertinent factors.[4]
Under "Public Benefits"
- Equal Employment Opportunity Act,
- Emergency Petroleum Allocation Act of 1973
- Supplemental Security Income was established.
- Decoupled the dollar from the gold standard, the dollar price of imports increased. The cost of imports allowed Americans to focus on American-made products to keep the money circulating throughout the American economy, resulting in a higher income for American workers.[12]
- Emergency Employment Act in 1971, created about 150,000 jobs.
- in education, environmental protection, law enforcement, and other 'public
works'"
- Mass transportation systems.
- The Housing and Urban Development department was established.
This Act provided people with low income with subsidized rent for affordable housing in privately owned buildings, the "predecessor to the Section 8 rental subsidies".[17]
All from Wikipedia.
Those are just a few examples of what was in the Economic Stabzation Act.
President Nixon was the best democratic president we've had !
Why ?
Because the party has had no FDRs of late so we've adopted Nixon's policies
as our own. Ha!
Bite my tongue you say?
So I am sacrilegious.
Apparently there's not much time for doing the peoples work while
doing that bipartisan dance and chasing all that re-elect me! money !
For all his faults Nixon had some great ideas.
- Ya don't gotta luv me. -
Now y'all can unfriend me.
Many things that you laud for Nixon was because he was forced to do by the Democratic Congress. Please research is lack of funding for EPA and Clean Air Act
They just want to make Biden look bad! After all, the 'right' has NOTHING to offer most of US : middle or working class/poor !
Exactly. The House hasn’t accomplished anything & is terribly divided. MTG has just been kicked out of her committee for profanity.
Judy Bertelsen; it's legalized robbery; this obscene wealth Inequality! Citizens United. Along with the gaming of an Electoral College are designed to keep everyone down and those on top in full control! They even own 'our' Supreme Court and the DOJ! : It seems. Look at the biased rookie judge assigned ('fairly') to tRump's case! Magically! It's'Murphy's Law' if a thing can go wrong: it will!
I think about this phenomenom a lot - seeing as how I see the economy so differently than so many other Americans. To me, Joe Biden is the PERFECT president to come along during these times and his "bottom up middle out" is the best thing I've seen in our economy, from my vantage point, since LBJ's attempt to eliminate poverty in America with the "Great Society." I consider myself one of the reasons to blame for this - I have two "buckets" on my "bucket list" and one of them is seeing Trump CONVICTED of (at least one of) his CRIMES - actually, I want to live long enough to see him in JAIL. I fully recognize this goes against my (liberal) Christian views, but I just can't seem to help myself. I believe there are so many other Americans "yearning" for the same outcome (of course, for a plethora of reasons) that our so-called "liberal media" continues to be focused on Trump - Cable outlets, morning, noon, and night. Combine that with the seeming incompetence of democrats in MESSAGING, and you end up with media coverage which has been focused on Trump for, well, now I suppose it's been about 7 - 8 YEARS. Obviously, "liberal leaning" outlets like MSNBC are making a boatload of MONEY by focusing on Trump's CRIMINAL conduct while virtually IGNORING the generational accomplishments of Biden's first two and a half years that people have heard mainly about the failures (Biden was set up to fail) in the withdrawal from Afghanistan AND the issue of inflation - resulting from a jumpstarted economy (apparently many Americans prefered the failures of Trump's last year in office) and the resulting inflation (affected by supply chain issues, the Russian illegal invasion of Ukraine, ALONG WITH typical American corporate GREED.) Maybe "we the people" aren't sophisticated enough to process all this (I do my best) but, again, I think people like me who are obsessed with seeing Trump held accountable for at least SOME of his CRIMINAL conduct are what keeps the focus off of Biden's successes (to me, there are MANY) and on that pathetic FPOTUS. Just a few thoughts......
We also forget that even “liberal” media outlets are owned by giant corporations who don’t want people to know that Biden is succeeding. My 27 year old son says all media, indeed, all companies of any type, are ultimately owned by one of only 3 mega-corporations. They need to be broken up before any real and lasting change will be possible.
Right on! Let's hope America's young people, like your son, vote in record numbers. The reality is the FUTURE is theirs - and, their voices MUST be heard if "we the people" are going to preserve our republic.
Thank you for deeply focusing on negative aspects of Trump. You are absolutely correct. I am a huge fan of Special Prosecutor Jack Smith and his Grand Jury(s). His necessarily slow work appears to be nearing the point where the real charges will be brought. That will be a great day.
Incidentally, I also mostly agree with you about Biden. But he does have two big fumbles. 1. The Afghanistan pullout. This cost him a full ten points of support and he has never recovered those points. 2. Too much sugar pill economic stimulation. In about October of a year and a half ago an additional sugar pill hit made the news and I sat back and immediately, the word inflation arose. Unfortunately, the Federal Reserve wouldn't realize this for another six months or so. But once they did they started a long slow process of edging into the problem with their only weapon, interest rates, and chewing it back down towards a soft landing.
Having said all of that, it is Biden who put Trump out of office. I know of no one who is more deserving of a chance to repeat that feat. In fact, other "possibles" would probably lose. So health to Mr. Biden. He's the right man at the right time.
Amen! My only response would be, I'm glad we're out of Afghanistan and, clumsy as it was (Remember Trump was the one who enabled the Taliban in his last year in office) it was MUCH better than the pull out from Viet Nam. Apparently, pulling out of losing military "adventures" is clumsy. (However, I totally agree with you that, regardless of any details, it cost Biden the 10 points you mentioned) As far as inflation, to me, it was inevitable - and, there were other factors causing it besides what you refer to as "sugar pill economic stimulation." I know of several families who were saved economically by the Pandemic relief bill (the child tax credit was critical for them at the time) and wages have gone up (thankfully - even though I'm no longer in the "wages" section of society) and more jobs have been created than anytime, I believe, since the "New Deal." The reality is, despite the WAR being waged in Ukraine, which is "out of sight out of mind" for MANY Americans, it's part of the cause of the supply chain issues, which to me - along with the typical American corporate GREED, is more a cause of inflation than the interest rates. I witnessed the interest rate hike as the way to stop inflation before - as if the working class Americans are the cause - The Fed has openly stated their concern for the number of jobs being created (which is continuing - thanks to the "sugar pills" (The infrastructure INVESTMENT is just hitting "high gear.") All that said, I believe your take is right on - maybe I'm subconsciously complaining about the democrats lack of "skill"? in messaging. Regardless, thanks to responding to my post.
David Piper - EVERY SiNGLE TIME I click on a T*** bit of news, I hate myself, because I KNOW I am doing what you say, prolonging the obsession with that man. I figure I SHOULD now what he’s up to, the better to be ready for it, or counter it, or whatever, but I know the country is in the throes of what we called “rubbernecking” when people stopped to gawk at my ambulance crew at an accident.
But I am at a loss as to WHY he has risen to such a perch of “power” - I know he’s a tool, and not someone who actually gets anything done, but how did he become the tool of so many powerful behind-the-scenes characters? He’s a carnival barker, and that explains some of it. And a celebrity, which taps into our national cult or celebrity worship.
But, egad, he’s such a skeevy individual!!!!! And he sucks up all the attention ...
What can we DO about that?I too dream of and long for the day the man is convicted -- oh, wouldn’t it be a red-letter day if he went to jail!!! But mostly, wouldn’t it be nice to never hears from or see him ever again. ...
Right on! I read a book called "Rising out of Hatred, The Awakening of a Former White Nationalist" by Eli Saslow which chronicled the life of Derek Black whose father, Don Black, had been a "Grand Wizard" of the KKK. His God father is David Duke. Derek was destined to take the "reins" of the White Nationalist movement - until he spent a couple years at the "New College" in central Florida. (Maybe why DeSantis sent in a new "Board") I read, afterward, as much as I could find on the White Nationalist movement and, at the time, I remember them - at one of their sicko gatherings - saying Trump was their "vehicle" (my characterization) into the mainstream of American politics. Duke had run before in Louisiana for the Senate and lost, but he claimed Trump had the same views as himself. I think I've learned that I totally underestimated the backlash to Obama and, using the word of one of the liberal Supreme Court Justices (I believe it was Sotomayor), it's going to be difficult to remove the "stench" of what Trump has brought to the surface. I believe you're absolutely correct, it was here all along, Trump was just the "mechanism" to get it to the "surface." And, I believe, they will "fight like hell" to keep it there - using whatever "tools" are required to do so. To me, that is why Trump is so valuable to them - he's willing to LIE with impunity and CHEAT in order to "win." To his "base" that is a positive "quality." (sorry for all the quotation marks) I'm 75 (and, apparently, in failing health) but, I believe those of us who've been watching all this transpire MUST remain vigilent in encouraging anyone and everyone who wants to see our republic continue the slow transformation toward "her better angels" to continue VOTING and realize this "fight" will last for a generation (thanks to Trump's packing of the SCOTUS.) The sad reality is that racism has been a significant part of American history and the republican party seemingly believes they can blot that out via book bans and intimidating public school teachers. (I'm a retired 6th grade teacher.) I wish I could stop my obsession with wanting Trump behnd bars because, to me, that's just the first step in stopping the problem. It's taking too long. But, the next steps will be harder and take longer, in my view. Thanks for responding to my post - I think you hit a lot of "nails" right on the "head."
So did you. Hit the nails on the head. [Yes, I’ve heard about Derek Back and heard him interviewed -- the kind of human interaction and redemption that gives me hope.] I’m a 76-year-old retired community journalist and writer [not retired writing!]. I see so much of the way things are now as you see them, and remember so much as you remember it. Maybe because I considered it SUCH a huge mistake to let Richard Nixon off the hook, I simply cannot abide the thought that T*** will eventually prevail and never be convicted. I think the UNIVERSE needs for T*** to be convicted and held to account to redress a grave wrong that is rippling through reality.
OK, I’m being a writer here, but In very plain language, I totally agree with you.
Sorry for typos...
I will miss your commentaries and classes immensely!!’ I rely on them for truth. Thank you from the bottom if my heart for your dedication and perseverance. Much luck in your future pursuits! Thank you! Pamela Ashnault.
Just returned from BC and Calgary, AB. It seemed pretty apparent that these Canucks were "on the whole" better-off financially and shared better government-provided facilities and infrastructure than we have in the States. Taxes aren't all bad.
USA might boast of Gates', Musk's, Bezos', etc. wealth but all it does is skew the average wealth with outliers that don't contribute tax to the bulk of us.
Sad returning to the States and immediately seeing singlewides and shacks surrounded by trash and junk proudly flying Trump flags.
Your last statement is what pains me the most - trump's fans are largely from the bottom level of the population, mostly the white males, who appear to have ZERO recognition that trump is the very last person who cares about them - his history is of making nasty comments about such people, and not wanting to 'dirty' his hands by contact with them - yet they have no clue, appear to think he is telling them the truth ! THE most ridiculous situation ever - and we can't get thru to them ! When asked why they support trump their answers are as if he were a benevolent billionaire come to rescue them from poverty - the very opposite of what such a man has done his whole life ! The illogic of this is beyond belief !
Are you sure you went to Canada? I have family all over Canada and they do not share the same sentiment! Have you ever heard of Medical Tourism? That's when you can't get the help you need in time to save your life in Canada, so they come the the US for treatment and it happens a lot! My aunt had a cancer and couldn't get help in Canada in time to save her life so she came to NY for treatment. Plus most good Drs from Canada come to the US to practice because they make more money. So the Uber rich don't contribute to the economy either? Wow, this whole comment section gets more and more delusional. The top 1 percent of taxpayers paid $723 billion in income taxes while the bottom 90 percent paid $450 billion. The share of income taxes paid by the top 1 percent increased from 33.2 percent in 2001 to 42.3 percent in 2020.
The dread that many Americans feel is real. However, I'm not sure if that has really changed since 2008 crash. I think this feeling of awful economy has more to do with how we get the news and the quality of the news we get. The news programs on TV have been getting more selective in what they show and how they show the "news" that they choose to show. Take, for instance, the recent Supreme Court ruling on the bigoted web designer. The New Republic reported several days ago that the supposed web designer didn't have a web design business and that the gay couple that requested a wedding webpage didn't really exist. Shouldn't this be a BIG news that, in a normal society, should lead to the Supreme Court ruling being vacated, since the decision was based on lies. I'm just flabbergasted.
It won't get vacated because that is what the six justices on the supreme Court want. Even though they're acting like a bunch of dogs they think they're gods.The supreme Court we used to know has now become the property of the Catholic bishops of America and evangelicals. They are now pushing Church law.
As Justice Kagan said they are making up the law. Biden had the authority with the Hero’s Act. Here millions of dollars in loans given to businesses during the pandemic were forgiven. It’s unjust!
'Flabbergasted' says it all. I join you there. But listen closely to the disinformationists' banging their drumbeat of doom; do you hear echoes of the same tune playing 24/7 in pre-Fascist Europe before WW2? As the noise gets louder and more persistent, obscuring its source, we are finding it nearly impossible to think straight. We are being pulled into a perfect storm of confusion, terror and helplessness, ripe for promises of 'fixing everything' made by authoritarian strongmen whose fat little fingers are crossed behind their backs. Put in your earplugs and vote blue as if your life depends on it because it does.
There is a general sense of insecurity. That whatever good there is, it is fragile. That the Fed is determined to cause a recession. That major corporations continue to resist unionization. That housing remains out of reach as existing homeowners won’t move up, in order to keep good interest rates, and the few houses available can be bought only at exorbitant interest rates. That many see they have less of a voice in public affairs as courts usurp legislative authority and gerrymandered districts send to Washington legislators who are not representative of the vast majority of the people.
Agreed, but no voting for Buden isn't going to fix anything!
We know that Republicans have done nothing to improve the lives of the American people!
Their plans include making Trump tax cuts permanent, cutting Social Security and privatizing Medicare (and SS). In addition of dismantling the Federal government, as well as State government, when the get control.
Instead of focusing on what's wrong in America, I think we need to focus on what will happen if the MAGA Republicans gain anymore power; it's not going to make anyone feel better but the wealthy!
As one who views the USA from a foreign perspective I can see that the US press is spouting a lot of gloom which average citizens totally understand. Unfortunately Americans think that the president can fix everything with the snap of his fingers and if heShe doesn’t then heShe isn’t listening. Well in Australia we have all of the same issues including housing shortages, inflation, soaring interest rates, supply chain issues, drug gangs etc. (but we do have universal healthcare and more gun control and few mass shooters!) We know that it is complex and not all caused by our PM. Americans have become desperate for a Messiah in the White House and good old narcissistic Trump says “I alone can save you!” - but he can’t and doesn’t really care. Those who feel disenfranchised are unlikely to view the complex system and follow a Messiah, and that mentality is spurred on by Russian trolls and Q Anon. The money controllers who own the GOP are using this to promote Trump. He won’t fix much if elected (except balloon out his income) but his followers won’t see to it that the rich will get more and more tax deals, subsidies, concessions and reductions in their taxes while the struggling average citizens will have to pay for it. The GOP has a lot to answer for! (Btw I’m American born raised and educated )
I've just read the 74+ comments on another fabulous column by Robert Reich and have come to the same conclusion I always do: Campaign Finance Reform would fix (almost) everything that ails our country. From guns to voter apathy to income inequality to the scourge of Maga to the cost of health care to needless wars...it could all be fixed if we financed campaigns with public dollars. If the DEMS can get back control of both houses and retain the presidency, Joe Biden must pass big, brave legislation getting money out of our politics once and for all.
I like the public financing idea but think we need to go further and make lobbying illegal. Money > Access > Influence. It's ruined our system of governance. I also believe that ranked choice voting will help minimize the effect of the far right and left voices commanding so much attention.
I should have added ranked choice voting to my comment above! It might reduce the binary nature of our political dialog. I think I am a fan, or at least I would like to try it.
Worked great in Alaska!
I may be wrong, but I think lobbying is protected by the Constitution's Bill of Rights.
It’s not lobbying that’s the problem per se. It’s the cost of funding lobbyists which gives the rich the powerful advantage. A tax law that essentially levels the playing field by establishing both a floor and a ceiling for both income and wealth would be ideal. If we can enforce a minimum wage why not a maximum as well?
But certainly we need to get Citizens United overturned and stop fleecing the poor and middle classes to fight the greedy Uber Rich’s and corporate (as people?) schemes to own the government of, by and for the rich.
How so? Lobbying is in fact political bribery with a nicer name.
We need to get rid of citizens united first thing. This inferior out ruling allows the rich and the religious to send millions if not billions to the Christo- fascist party.
I echo your sentiments. If we fail to separate public service from private gain we will get more of the same. Here are some ideas. A. Ethics reform is key. Our public service ethics laws all the way to SCOTUS should be strict, transparent and enforceable. B. Campaign finance laws should be revamped to at a minimum prohibit dark money--if donors cannot take a seat at the table of public debate they should not be able to anonymously influence policy. C. Publicly fund elections. The 2020 election cost a record setting $14.4 billion, yet I cannot identify a public good that came from that. Running for office requires so much money that it becomes inaccessible to most people Also, elected representatives spend over 50% of their time fundraising, not serving--bologna to that! Finally, media is dining off of a perpetual election season with meaningless polls and stories focused only on the clicks. D. My most controversial idea, subject any legislation drafted by a lobbying organization to public disclosure and analysis. Too often we find out after the fact that special interest organizations such as ALEC and the new Christian Nationalist lobbying groups drafted the legislation before our elected officials. Just like campaign disclosure laws, Americans have a right to know the monied interests influencing legislation. E. We The People must become more active participants in our democracy. Voting alone is not sufficient. We need oversight, participation, and good, honest candidates. We have over 89,000 local governments in this country and that's a great place to start. Thank you to all of the thoughtful and earnest participants in these stacks. I learn so much from you.
Wow! I want you to run for office! But, will you honestly try to accomplish what you proposed. Can you get enough support for these projects and how do you propose to handle the fascist party trying to make you look bad. Again, I love your ideas but politics right now is like swimming with sharks and blood sucking leaches. Would you, or your proposals, make it in this environment?
I know Biden is having one hell of a time. He needs to pull a Franklin D. Roosevelt.
Hahah! Thank you. I am an unlikely candidate for office. I sure would like to teach and train new public servants though. And if had the ability to enact these measures I would do it in a hot second. In my humble opinion, we have had too much role blur between private sector and government. Industry is not admirable when its money comes not from hard work and innovation, but from buying legislators, policies, and deregulation such that money can be made by exploiting labor or public resources. It's not cool. Likewise, government should be protecting public health, safety, and welfare and serving public interests--not picking winners or increasing net worth. I truly believe we need to reestablish role clarity. I think these policies (or something similar) could get bipartisan support from the public, but I admit not likely from some current office holders who have been benefitting for a long time.
But he can't do it with a 50-50% split or even 49-51. The filibuster or expanding the court are the bold steps he could take. He is still about uniting us - which is admirable if somewhat naive. and sometimes I wonder if Biden's catholicism is keeping us on the fence without him announcing it. (#TaxTheChurch being another one of Professor Reich's principles.) I feel like the last 3 elections have been do or die, but I can't imagine that if we lose this election we are only going to have elections like Putin holds! AGAIN we are saying we have to vote like our lives depend on it.
McCain & Feingold really tried to achieve campaign finance reform, but there was too much intransigence in Congress due to corporate influence. And not long afterwards the reliably corporatist Supreme Court made that horrible Citizens United decision, making things that much worse & more hopeless.
Your right but I think the hope is gone too wha we need is to see that trump and his people that were involved in the aJan 6th attack on our capitol are being held accountable ABD that has not happened! Trump is still spouting hate and lies and Jim Jordon, MTG, Boebert, Hawley, Gaetz and the rest are making a mockery of our House! All were involved in Jan 6th how are they still in our government??? People are angry!! They want justice!
The GOP is working on hampering the economy through every means possible. The intent is to keep the middle class in check from being able to become any sort of donor class or have any ability to have any from their ranks to have a hopeful chance at running for office. The wealth disparity works fine for them and they want to keep it that way.
We well know there is a sweet spot where inflation and wages actually compliment each other for broadening prosperity to its ends ... but the GOP has been fighting infrastructure measures and any program that would actually facilitate a broader, freer and fairer market for the general American People. They need to keep Americans struggling, whether it is with student loan debt, health care debt, or credit card debt ... as long as Americans are struggling under debt ... they can scapegoat Biden and the Democratic Party so they can keep their status quo of increasing the wealth gap (or at least maintaining) it .... so that the donor class of which they attempt to monopolize can keep them in power.
We can count on the GOP to do its level best to keep the American middle class, the American Struggling class because any actual prosperity will work against them in maintaining power. As usual the GOP is the Arsonist (with "trickle down Hayekian modeling austerity) and blaming the Democrat first responders attempting to put out the blaze ... while they stand on the hoses and shout from a safe distance about "how others are doing it all wrong" ... even as the flames they caused are fought back.
love the metafor - democrats running around with firehoses and we're exausted! Always just one vote shy...WHY do people vote against their own interests?
Thank you professor.
I think most people in the USA think the economy is not doing well, because for most of them it is not. The bottom 90 or 99 per cent are struggling. They cannot afford to send there kids to college, housing, food, and rest. They do not trust their leaders to tell them the truth, They must borrow, beg or steal to survive. They are told it is their fault,
I suppose it is my fault, that my life is awful.
I should go back to sleep.
To the extent that’s true, it’s because of the structural inequities that have deliberately been built into the economic and social system by the rich, corporations and the politicians more than happy to be paid off to do their spade work.
yep.
yep
yep
William, that’s a lot of right-wing propaganda. Shame on you.
I think you missed a major contributor to the sense of dread: the Extreme Court. Half the population of half the population, that is women of childbearing age, feel enormous fear about the likelihood of simply surviving what should be a joyous thing, pregnancy and creation of a new life.
And then there’s the chance you might be shot dead at a party or while grocery shopping.
It’s not the economy, it’s the culture. Toxic.
I think the biggest problem in America today is right wing media. For some reason they seem determined to throw America over the cliff and will stop at nothing to accomplish that end. I don't know if it's racism, greed or the need for power.
It's tragic that our educational system over the decades has failed to provide so many, now under the spell of the evil intentions of this form of media, the critical thinking tools to recognise as nonsense right wing media's so called news.
I used to believe that Trump was the most dangerous person in America. I now realise that the most dangerous person in America is my next door neighbor who proudly supports Trump. Throw into this mix the cowards, fascists, and just plain stupid who now roam the halls of congress and the courts.
We need to look at who is driving this right-wing media and why. It just another branch of the tree of oligarchy, imo.
It's simple, Midwest: They are culture war entrepreneurs going where they can generate the most fear...because that's where the money is.
Look to the racist South as well. The people have never gotten over losing the Civil War. They’re still quite butthurt.
Mostly billionaire corporate executives, fascist zealots & foreign provocateurs (especially of the Russian kind).
I agree with you. The biggest problem we have in politics and In our present society is lies. I made a point of spending a few days talking to people about our current society and out politics. I determined that I was told 1 lie every 3 minutes.
Are all these people liars? No, I checked where I could to find out where they got their info from. It turned out they were telling.me what someone else told them. In other words, what they were telling me, which was false, was coming from a rumour mill. They did not appear to be making it up.
Is there a clue there?
Yes, you so often see the same false talking points, often very ridiculous & irrational ones, many times accompanied by an admonishment (which is actually a projection, whether they realize it or not) that you (we) are being indoctrinated.
Until we get rid of for-profit health care, nobody will be happy. I work and save money not for vacation, or to own a home, or to start a family, but to upgrade my hospital room when I inevitably will need one. AND I do this WITH a premium health insurance plan. THATS NOT A GOOD ECONOMY NO MATTER HOW YOU LOOK AT IT.
How can we join you for your last class, Prof. Reich? I gather that it’s being televised on some platform, but you’ve provided us with no link to it or directions on how to find it.
The link will post right here on Prof. Reich's Substack feed tomorrow along with all the other classes posted on the previous Fridays so you can view all of the Wealth and Poverty classes. Happy learning!!
Yes, Professor Reich
The ‘main stream media’ handed Trump the White House in 2016 - remember CBS saying covering Trump was good for ratings? - and will again in 2024, all for improved profits.
The billionaires can throw money to support oligarchy. The people are getting strangled by bills and unfair corporate practices.
I WISH😭 But I am in LA office tomorrow for the meeting😉Could you please pleeeeease record your very last lecture for me?? I will be honored🥹🫡 Looking forward to itBb
https://m.blog.naver.com/not_lindsay/223128337322
Thank you for your service and the positive changes you have made and WILL MAKE. Congrats, Professor Reich!!!👏🏼🥹🫶🏼✨🙌🏼
Prof. Reich has been posting the recorded Wealth & Poverty classes right here on his Substack feed every Friday. Check out all the previous Wealth & Poverty classes posted every Friday for the past several weeks.
When the top 1٪ take so much, gdp is not a good gauge of the economic well being of individuals. Also, contributing to pessimism is a sense of insecurity. No matter how one may be doing today financially, in our economic system that could be upended tomorrow.
We need to be measuring the well-being of the country and not just gdp. How do we measure that? Idk. But 17 mass shootings in a few days - there is something seriously wrong here. All the homeless people and the fastest growing demographic in homelessness is seniors. Life expectancy is dropping. People are becoming extremists. Doesn’t matter what the gdp is doing. The people are not well.
I am not an American but I am a neighbour and I am deeply concerned about the US. It’s like living next to a rental house in the neighborhood that has been taken over by the hells angels and shows no signs of getting better. The fact that Trump is still around is a barometer of the amount of damage being done. I can only hope america shows the intelligence and determination I know the country has in the next election and does what needs to be done. As far as the wealth inequities, I see very little on the horizon that gives me hope, both in the US and my country. Everything is under attack.
...by the fascists!
Here's what I think (thank you for asking!) Anyone who has been to a grocery store recently feels the pain of their shrinking dollar! The inflationary grocery items affect everyone, but hit the poor, middle class and senior shoppers the hardest. That's why people are not convinced the economy is better. It's in-your-face and in-your-wallet with every trip to the store - plain & simple. (I have seen some consumer news reports that address shrinking product size and increased prices.) The media needs to start hammering corporate greed and connecting it to grocery prices. It's out of control!
Suing a few price gougers would make an object lesson to the rest.
I had to survive on credit cards during the worst of inflation. So the interest rates kicked my butt. Things may be "better" now, however, I'm stuck in debt. I was able to transfer the debt to a lower interest rate, but the damage is done. I had car issues and medical issues over the last year, and now I'm drowning in debt. The car is ok for now, but I have continued medical expenses, with no sign of an improvement in my wages. The country's economy is better, but my personal finances are not. Oh, did I mention that at age 53, I'm still paying on my student loans? The student loan relief would have given me some hope. But thanks to scotus and the repugnican policies, I won't get any relief there either.
Oh yeah... my rent continues to go up as well.
DUMP CON REPUBLICONS EVERYWHERE AND JAIL CRIMINAL RTRUMP AND CRONIES
Why shout, people in Congress and the senate are Elected by people like you. That’s democracy. And as for Jailing people there are Courts of Law, and that also is Democracy.
Every country is suffering higher inflation. Why are you and others complaining. We have had it soft for a long time, and we think low inflation is a right. Jesus wept I remember when it was 25% and more in the 1970’s and we knuckled down as a country and got over it, when the Israeli and other countries stopped fighting.
Let me ask you Mr. King, when did you last vote ?
One big problem the US has is not the fragmented news channels but the total lack of BALANCED REPORTING AND DISCUSSION, ever since R Reagan changed the law, he would as a Hollywood iPresident. So that was 40+ years ago and millions have grown up knowing nothing about balanced reporting. That’s the big problem plus the two-tiered system of managing the country. One the one hand you have States enacting their own laws and the Federal government trying also but in this case for all Americans.
And like it or not the country is enriched by the diversity of its population.
I have to agree with your last two paragraphs. We are on a fixed income and it's a battle to stay afloat. What's killing us is corporate greed: gas prices, food prices, prescription prices, utility prices...I am aware that the economy is doing great and I praise President Biden for everything he's done to help this country. But I'm still fighting not to go under, and I really resent how wealthy the 1%, corporate CEOs, legislators in Congress and so on. They are so friggin rich and do not pay their share of taxes. Makes my blood boil.
To me, the first problem we need to address is the rising tide of fascism. Second is the proliferation of gun violence and death. Third is the dumbing down of the GOP and its House majority. Fourth is the financial debt of the middle class, and lower class as well as the country’s run-away inflation. Fifth is the Russian and Chinese aggression in Ukraine and Asian pacific waters. Too much to cover here, but if we can’t throw Trump in prison (no pardon here), then he’ll continue to be a threat to the country.
Thank you, for your service, professor Reich.
Yes, finally an article about the fantastic Mr. Biden is doing. Not only has he brought a rest from the previous administration, but he has also brought stability to the American public. You should have mentioned the misery index as well. The misery index is only a little above 7. This is far lower than 11 under Mr. Reagan. The president and the Democratic party need to hire an PR firm to advance the positive image of the administration. I would also suggest mor town halls meetings where Mr. Biden is able to speak to the American public on more of one-on-one basis. Not only has the academy improved, but our relations with other countries. The phobias of the previous administration certainly strained relationships with our allies. Please keep writing positive articles like this and we should advise the President's advisor to get the president on the road. As you wrote, the corporations are the ones who truly influenced inflation not the supply or demand for goods. If you look at the processed foods, prices increased twenty to thirty per cent more. Some prices actually doubled. Ironically, fresh foods barely increased or even decreased. Keep up the positive articles. We need more positive not the slop given to us by the Republicans.
Maybe we should look here - Gehl and Drutman basically agree on the core problem. Because of gerrymandering and the natural clustering of like-minded people, about 90 percent of House elections are noncompetitive come November, according to an analysis by Fix Our House, having already been decided in low-turnout primaries dominated by the parties’ most ideological voters. Very few Americans, then, have a real say in who represents them in the House. Once elected, politicians tend to be more concerned about losing their next primary than losing their next general election. As a result, they legislate according to the wishes of the small sliver of the electorate that put them in office rather than the much broader pool of constituents who make up their district. This reduces the motivation to compromise and deepens polarization. https://www.theatlantic.com/politics/archive/2023/07/proportional-representation-house-congress/674627/
Covid made so much of life seem unfair. As a nation we are collectively still grieving. Grief takes time and it brings up all the other things in our lives that we grieved. Collectively we seem to be in the anger stage of grieving unable to see the good that is happening especially when the republicans through MAGA and the Supreme court are taking away more, how much more can we bare to have taken. When we see the IRS, EPA, the dept of education, OSHA, AG’s seemingly unable to enforce their mandates we lose faith and hope. When I see Trump, his cohorts, and all those in Congress that we all saw on TV participating in sedition and treason with no urgent response and allowed to continue raise money and effect laws it is the stuff of nightmares. ABC reported 22mass shootings in 17 states, but tried to put a positive pain stating this was less than years before. That any human being with a basic capacity for empathy and compassion could make such a statement speaks to how numb we have had to become to survive all the gun s country allows. Over the 4th i tried to focus on the positives of this country, but if I am honest, I no longer feel that. I feel this is a cruel uncaring country. I feel many feel the same way which is why even if the economy is getting better, it doesn’t matter. The question remains, better for who? Democracy for who?
My concern is that whenever technology takes over jobs, which AI already is, the owners get the income from the new machines while the displaced workers get a piece of cake and a “see ya!” - if they are lucky.
Redistribution of wealth MUST become a MUCH higher priority, there is no way to otherwise level the playing field and it can only get worse.
With the ultra rich, it was never about needing more anyway, it’s always about “having more” than the other gazillionaires (EGOS) which is now a pathology of its own.
Yet I can already here the blue collar-level MAGAs screaming “SOCIALISTS!” as they cede the profits of their labors to their boss, that makes 500x their salary already. UGH, people on the right are imbeciles on the whole and unable to think beyond lunch. No wonder the oligarchs love hiring them!
The economy may be improving, and gas prices may be lower, but the legislative direction of the Republicans has reaped the worst outcomes: medical bankruptcies, impoverished students with loans, increased maternal deaths with treacherous health inequities, climate change denial.
Sometimes I think the Republicans are trying to wipe out the poor.
Just the unhealthy ones,😭!
I agree with you Mr. Reich. As long as the minimum wage remains $7+ this economy will be perceived as poor. Why aren't Democrats making the minimum wage a major campaign issue? Is it becasue their donors want it to stay low? And why don't you and other progressives make the minimum wage the scandal it is? It's like progressives are cooperating with republicons and billionaires instead of beating the drums to raise the minimum wage to $15 an hour!
The rich will continue to support Republicans, they want more! It’s pure greed!
Tax them, preferably at a high rate, like in the fifties and sixties!
Why would 70% of Americans have negative thoughts about the economy? Simply explained. Having to live pay check to pay check, being deeply in debt with little or no savings or adequate plan for retirement. What’s not to worry.
The system is not working. The 90% suffers from it; the top 10% benefits from it (Rand Corporation working paper of September 2020). We went from slavery, to feudalism, to capitalism. Slaves, to serfs, to employees. More than a constitutional convention we need a global convention to invent a fair system, government of the people, by the people, for the people. Power must be wrestled away from the corporations, the financiers and the merchants of death. If not, how will people regain faith in a brighter future for humanity on earth?
Excellent summary, as always. And yes, the good news about the economy needs to get to more people, but the big need continues to be really livable wages and incomes for so many Americans. And people NOT to blame the Democrats. Thanks
The problem is the false idea of trickle down economics. The rich got a big break on taxes from tRump. NOTHING trickled down. In fact price gouging became a prominent part of our economy contributing to major inflation.
Good news:
Inflation abates.
Bad news:
Inflated prices remain.
I think you nailed it, 100%!
Even if things are improving, they're not improving enough to register for most Americans who are struggling to make ends meet. Things may not be getting worse anymore, but there's the continued fear that they will again; in many ways, it feels like the economy is at a standstill, even if it's actually improving somewhat. It still costs $50 for 2 people to go out to eat for lunch at a very casual takeout restaurant. Everything costs way more than it feels like it should. And incomes are still relatively low -- certainly too low to afford current prices. I think THIS is more important than the statistics; even if the economy is improving, it's not enough that it's improving everyday life for most Americans.
As for me, I think my continued pessimism in the situation is largely, as you mentioned, the rapid rise of fascism in the US. I'm very concerned about pitting Biden against DeSantis (or Trump. Or any other crazy Republican these days!), even with Democracy on the line. I'm not sure enough Americans will realize the direness of the situation (the way they did in 2020) enough to vote blue, regardless of candidate. I do fear for our continued democracy, & I'm very worried for 2024!
In addition, I see no end or lessening to corporate greed, which you also noted is part of what's fueling continued high prices. It seems like we've passed a tipping point where the rich are growing richer, & there's no means to stop them. Meanwhile everyone else grows poorer. Society as a whole seems more greedy and self-centered since the Pandemic. Even Democrats seem more focused on putting themselves first; we lament the circumstances & plight of others, but we still focus on taking care of our own (which is harder these days, still). This lends to an overall environment that feels unkind, selfish, & hostile/cutthroat. I think this is a huge problem for our country, ESPECIALLY going into an election year. This is also a huge secondary reason for my own pessimism.
You said it all, and so concisely... but this is my elaborated confirmation that what you wrote fits perfectly with my own lived experience & thoughts on the situation. We need more hope for what feels like a failing country. These are scary times!
By voting for a Democrat and voting for anti-fascism you are voting for civil rights and freedoms for all Americans and that means you. You are also voting for a better economy. Think about it while thinking is still free.
As a housewife in America today I may be able to tell you how the economy is looking to us. Gas keeps inching up, every item in the grocery store is $5, grapes are $5.99 A pound. Our budgets are being stretched to the limits. Prices at restaurants are up because food costs more, plus it costs more to pay your employees. House prices are outrageous! Not everyone can afford A $300,000 home. My poor dog hasn't been to the vet in a few years. Prices there have also been rising. As well as the dentist. So, guess what I'm not thrilled with the economy. But, we're hanging in there. We are happy Americans, and we believe in President Biden.
Here's a promo for a free vet visit, otherwise I would not have taken my cat in. Purchase and vet visit must be completed by 7/31/23. (And no I don't work for IAMS but they covered my other cat's vet visit up to $150 the last time they ran this promo so I am doing this again for my other cat.) Keep all receipts to upload.
https://www.iams.com/checkupchallenge?&utm_source=google&utm_medium=search-paid&utm_campaign=8849315688&utm_content=139637489207&utm_term=iams%20free%20vet%20visit_gadid=594858663269&gclid=CjwKCAjwzJmlBhBBEiwAEJyLuy63mVBK2Ef3muHvbSHBMJF175sEzi2uF0LCIxp_uCSv4nKyT_ZnfhoC_5QQAvD_BwE&gclsrc=aw.ds
Thank you.
And do not forget to include exorbitant higher education tuition costs. How’s that for trickle down economics eh?
Power and money is what most want and will do anything to keep it no matter who they have to step on to hold on to it. I feel sorry for everyone who is about to have to add paying back their student loans on top of their other debts but I am also hoping that once the corporations realize that people are no longer able to pay the outlandish prices that they will start to lower them again. Corporations made a killing off of raising prices unchecked and blaming it on everything other than their greed and it’s time for them to start feeling what everyone else is feeling. Both political parties are also guilty for either their actions or inactions as well. I still say that the Democrats really suck at getting their messages out and they need to really start getting louder. The previous president gave us nothing during his presidency other than lies and lined mostly his own pockets. How some people can not see that still stuns me. I don’t understand how he is not in jail or how he would even be able to sworn into office if he doesn’t believe in the constitution (and I doubt he even knows what is in it).
People will not believe the economy is doing well until corporations quit raising prices on every damned thing. Inflation is the problem. I am amazed that Mr. Reich didn’t address this. All of those other numbers are mumbo jumbo to people trying to afford a house or feed their kids.
He did mention it, several times.
Politicians of both parties, goaded by elite academics, spent the first quarter of the 21st century sending jobs overseas and undermining the economies of rural communities, towns, suburbs, now cities. The hardest hit are men who have not invested in their own training or education...educate for what? Currently we have the lowest marriage rate in history for people under 40. Women are getting educated and finding jobs because they must support children or elders. Increasingly women do not see men as valid supports for families.
I'm sorry, Mr Reich, but the reason that good news about the economy does not reach the electorate is only partly due to news organizations' incompetence and political skewing.
Unless Americans see changes in their own lives -- the kinds of changes that take time, buildings, hiring--Mr Biden's promises will seem as empty to them as Mr Trump's proved to be.
Yes, tax the rich. Yes, along with those taxes, encourage the rich to invest in businesses and programs that offer ways to earn s living that bring dignity to individuals and stability to communities. But don't expect Americans to believe you until they can see the results with their own eyes.
July, 2023
Wit
It seems that every business and private contractor is grabbing as much money from everything they do in the United States and it's why inflation is persistent. Inflation is now embedded in our country's psyche. It is no wonder Americans are as pessimistic as they are. America sprinkles our money all over the world and short-changes our underserved citizens.
Thanks
Our Texas legislature came back for a special session trying to lower property taxes which would not help the poor. I voted against it. I have loved your class and not missed a one. You are a magnificent teacher/
As usual, you are right on! I will miss these morning perspective adjusters. The very best to you!
My sense is that housing is the top issue for most of the middle-class. The median salary no longer makes it possible to buy a house, and rents take an ever larger chunk of take home pay.
This fuels a sense of hopelessness, that it's not possible to build a secure future with a chance at retiring.
This is exacerbated, possibly even caused, by both corporations and individuals buying up real estate as investments, something that has been happening aggressively for the last decade. This has to be stopped. I'd suggest steep taxes on investment property.
You’ve said it for those of us who don’t have the ability to do so. Thank-you. Your teaching position is going to be a tough one to fill. Wishing you good health and hope you have lots of busy interesting days ahead of you. With love from Canada. 🇨🇦
Yes, the problem is the rich get richer, and now instead of inflation, we have a new term I heard the other day, greed-flation. The manufacturers & big corporations (in the food industry especially) got used to charging more due to pandemic shortages, so they continue to increase their prices (ie, their growing profits) b/c they can. When you go to the grocery store, the prices continue to rise. What needs to happen is that the excessive profits, made from continuous price gouging, should be taxed at a higher rate. This greed-flation hurts the middle class on down to the working poor, to the very poor. The rich don't even notice this constant price increase at the store. It is insulting to tell the non-rich people that “the pandemic is over” & “inflation is just 2%” — this implies that everything is back to normal, but the prices at the store have not gone back to pre-pandemic prices. What's good for Wall Street is not what is good for Main Street residents & Biden needs to recognize that if he wants to get re-elected.
(Pancha Chandra);-: Robert, your wisdom, knowledge & humility are wonderful qualities! You have so much to impart; you do so so thoughtfully! What a gem of a Professor!
Exactly, and this same 70% of Americans who aren’t sharing in the improving economy are angry and rightly so. This is the anger MAGA keeps leveraging and feeding with great success. Until we address this inequity we will continue to loose ground. Democrats see ourselves as the party representing everyday working people, but, we’ve let rural America down and they no longer trust us. Biden is working on this very problem with recent legislation, but, we as Democrats need to do more to show we are not merely a party of coastal elites. Anything that conveys destain, ridicules their values or minimizes their contributions must be washed from our mouths. We are all (red & blue) being used by the oligarchs to cement their power. Unless we work together as fellow Americans we will find ourselves in a country we no longer recognize.
Ummm, Democrats are trying to fix the low income issues. Are you not paying attention? The Republicans are quashing what the Dems are trying to do.
VOTE and vote blue 💙. Dems are your friends. The fascist want to use you as cannon foder.
Yes, I’m paying very close attention and Democrats still have some ground to make up. It will take time and a unified message to overcome their lies. We’re still paying a price for thoughtless remarks about “clinging to their guns and religion” along with “deplorables”. The GOP is simply better at messaging the we are. Nitpicking among ourselves doesn’t help. And yes vote blue.
Screw rural America. They continue to screw themselves by voting against their own self interests. Again and again and again. Even after the Dems help them with things like installing internet infrastructure. They cling to ignorance and religion and believe the right-wing rhetoric that the Dems are godless elitists. They’re past the point of saving. I know. I live with these people.
Yes, I agree with your assessment about why most Americans don’t approve of the economy. Working class people are absolutely NOT reaping the benefits of Biden’s policies. And he should know this, for hell’s sakes, he needs to SEE this and he could by going to any of our urban areas unhoused areas which are ever growing.
If Biden wants to matter, he’s got to help the poor and working class. We are drowning in the bleak reality that includes low wages, high interest rates, inflated cost of everyday goods, insane housing costs, no childcare that’s available or affordable, etc.
If he wants to matter, he could curtail or ban corporations from buying up single family homes. He could expand the court or use his executive powers to sign national reproductive rights legislation. He could stop spending gazillions of dollars funding yet another endless proxy war in Ukraine. He could use a fraction of the Pentagon’s budget to increase public safety nets, provide more public school funding, house the unhoused. The list of options is long. Biden talks a big talk and delivers very little. It’s a trend with neoliberal politics. They pretend to care and then side with the big corporate bosses time and time again.
Président Biden is not alone in making decisions. He’s inherited these problems and he’s not done yet. Blaming him for all our distress is not fair. Let’s give his administration a chance to correct other administration’s mistakes.
And just as good vote 💙.
Not a perfect solution; but a $15.00 national minimum wage would be a step in the right direction``````````````````````1``
I live in AZ and cannot wait to get rid of turncoat traitor Sinema and vote in a 2nd real Democratic to the Senate from our beleaguered state. Get active at the local level!! Our local LD13 Dems are organizing and calling/texting/emailing registered voters to make sure they are on the AEVL (Active Early Voting List) to get their ballots by mail. We are gerrymandered but we are organized and fighting!!
I was also a teacher and I was told that a students gift of after shave given at Christmas could be construed as a bribe . Politicians spend more time collecting "Political donations " from the rich than they do in Congress . The Supreme Court is also owned. The so called news media also runs for profit . The only way to help the poor and middle class is to call all "Political donations ," what they are ,bribes.
My wife and I both have graduate degrees and full time professional jobs where we are working overtime, and we do not have the standard of living that my family had when I was a child in the 1970’s with my father working with an associates degree and my mother staying home. Wage earners pay too much tax while billionaires who may have never worked a job in their lives have enormous incomes and contribute very little to the national budget.
I would expand the idea about the rich getting richer to include the inability to curb the “Silicon Valley” type subterfuge. It allowed those executives to make astronomical amounts of money while someone else bailed out the customers; ultimately on the backs of all of us.
In addition, there have been no guardrails set up to the ever increasing price of goods that just line the pockets of company executives and investors. They should, at least, be passing on some of these record profits to the employees so they can keep up with the cycle.
And those executives and investors that are making it impossible for young families to buy a home. I can’t see good results in the future when America has been bought up by investors.
Heads Up, Everyone! There is a scammer starting to intrude in this posting. I think it's the same one that sent a great many "text me" messages pretending to be Robert Reich. Now they have what appears to be a bona fide email address (RobertReich29@gmail.com). Heads Up! The language indicates it's foreign interference.
Many thanks, I had a series of exchanges with this person claiming to be RR but noticeably less articulate. He us used flattery ("I love the way you believe in me and my company You’d earn large profits from this") and then threats ("you can’t see how bad you’ll feel about missed opportunities until they are long gone in your rear-view mirror 🪞 one way or another you’re going to ante up with effort or remorse, so you might as well PAY THE PRICE and Chase your Dreams"). I told him that I didn't want his investments or tips on getting rich and my decision was final. Only later I wondered if this was an imposter who has managed to contact people on their private email. Report himto the SEC and FBI! I hope your country puts this Ponzi schemer into jail like his spiritual brother Bernie Madoff ASAP.
I see a trend among solidly middle class individuals to align themselves, in some odd twist of reasoning, with the super wealthy. As an example, a work buddy of mine whose father left him roughly $10K and a 1/3 share in a dilapidated “family homestead” was inclined to grouse about the unfair inheritance tax. All the scare tactic talk by the usual suspects about fighting socialists and communists, that rings as oddly nostalgic as it does hollow, similarly harkens back to an earlier, lamentably inequitable time when a supposedly whiter and more homogeneous America existed and all was alright (and all-white) in “the Land of the free and the home of the brave”. The problem there is one of false nostalgia for an inaccurate reality of a far more chequered and complex past. Far from indulging in the self-loathing some of our more vocal reactionary fellow citizens would have us believe is being taught in our schools by pinko educators and administrators, a balanced critical examination of our actual history is one of the surest ways to take the full lesson offered by our rich, diverse, and not just exactly sterling past.
Worse is that $32 trillion both parties pissed away was another Ponzi RICO scheme. Give the multinationals our tax $’s in subsidies, watch it trickle down into their campaign coffers, politicians now use that $ to buy same multinationals stock with secret internal info (which corporations buy back, artificially inflating the stock market) blame We the People for economic problems.
I very much look forward to watching your last lecture tomorrow (whether in real time or a recording). All the best.
And maybe, just maybe, Americans are not interested in entering the Cold War II that Biden is pushing. And don't blame Putin, Xi, and everyone else in the world who doesn't follow the Biden line. He is a Cold Warrior whose been wrong on so many issues over his long career, destroying innocent lives right and left.
Ok, what other propaganda do you have AI? ...or is it Ruski joe again.
Das vedanya, tovarich.
That was a stupid response intended to silence opposition.
How's the weather in Vladivostok?
About the same as where you are - childish.
You are a complete idiot. Billionaires don’t pay their fare share? Really? What about those billionaires that run businesses and employ thousands of people? Then they pay for the overhead for employing those thousands of people. What I don’t like is CEO’s that don’t own these businesses, and make millions by macro managing businesses like Lowe’s and Home Depot etc…, and don't know what the hell they are doing. They chop staff to the bare minimum and expect those who are left behind to fill the shoes of those they forced to quit. Then the government (because in their infinite wisdom) increases the taxes of those that are busting our arses to get the job of four people done in 7 hours, because heaven forbid you get overtime to help make up for what’s being pulled out of your paycheck because hey, being taxed because you work for keep, well if you know, then you know. This government (regime) is the ponzie scheme of evil. The Biden regime is the boil on the back of hardworking Americans.
Wishful thinking will get us nowhere. The very wealthy are not going to do anything about this voluntarily. They have to be forced. We have work to do. I don't know what that work is but organizing is the way to go. HOW, WHEN,WHERE! WHO!!!! I'm 97 yrs old so I hope you "yung uns" get the message and go to work. Ida Cohen
The economy seems to humming along just fine for many, including myself. Witness the vast numbers of fliers, travelers, vacationers this past week. That does not happen in a bad economy. Some people perceive the economy as being bad because that is what they are TOLD to think. The gift of thinking and acting on one's own behalf seems to be diminishing by the day.
I agree with you Professor Reich, the state of our country does keep me awake many nights. The problem now is I see no end in sight. The Republicans in the US House of Representatives make a mockery of the institution. I hope more voters wake up before the damage is total and complete.
All the gains we earned have been decimated by the inflation on food, clothing, health care and insurance rates! Car insurance is just as expensive as it was in 2008! Home insurance is through the roof (no pun intended) ! Some insurance companies are no longer insuring Californians in “danger zones” described by the insurance companies. Car theft has driven up car insurance! People are hurting every where! Every aspect of the economy is under attack by inflation, distribution problems (and if you haven’t heard truck drivers are going on strike)! The economy today reminds me of the upheaval the US went through in the sixties. Massive strikes all over the US! Trying to hold on☹️
The reason I am optimistic about the economy as an abstraction but pessimistic about it in my day-to-day is the practical effect of price gouging. My doctor put me on an OTC med that has more than doubled in price (I literally have the receipts) and my grocery bills are running 30-50% higher than previously. And, yes, gas prices in upstate NY have fallen from almost $5/gal to $3.50-3.80, but that's still steep. Unless and until PRICES COME DOWN, people will feel bad about The Economy and blame the current administration.
Right on the money, as always RR . It's just another outcropping of their barrage of mis and dis information being their M.O. The ex draft dodger and chief, desandinhispantis, and how about Fla's Scott's message yesterday ! ? These are BAD MEN . Their manipulation of message, the corporate takeover of the fourth estate, and even worse the concerted effort to underfund the education of the nation. This, undermining the ability to perceive, to recognize their base drives . We are in very bad way as a nation allowing the likes of the 'pussy grabber and chief' to even be able to run for office ! ? Taking into account the aftermath of his blazing mistake of an administration ! What does it take to turn the lites on for people ?
I think the main reason people don’t realize the economy has improved is because republicans keep saying the opposite. They say it repeatedly and loudly, pretending our economy is in the dumpster and pretending it’s all Biden’s fault.
The reality is, our economy is doing not just well, our economy is doing better than any other developed nation’s post-covid economic recovery. But no one
in America will say that other than the Biden admin.
Then, in return we hear from individuals complaining
they can barely pay their bills, inflation has made everything more expensive, and it’s all President Biden’s fault.
Let me explain, those who say our economy is good aren’t talking about your family’s bills. They’re talking about things like the monthly unemployment rate, the number of new jobs created, the number of new businesses started, the gross domestic product, the consumer price index, etc. Those numbers may not mean much to the average family, but they’re an important indication that our economy is structurally sound. What that means to individuals and families is, the economy is stable overall & it’s
a good time to start a new business or invest. Eventually, people will see higher wages and if you haven’t noticed, inflation is already way down from a year ago.
Sure, President Biden’s spending to help ease the ravages of the pandemic added to the inflation issue, but it added very little compared to Putin’s invasion of Ukraine, supply chain problems and intentional price gouging by certain industries. Something you won’t hear from republicans is, Biden handled the inflation issue skillfully and it has steadily gone down.
Republicans don’t talk about how Biden made it possible to give every household in America cash to help them ride out the pandemic, or how in 2022 his infrastructure act set aside $billions to retrofit 100’s of thousands of homes in low-income communities, resulting in lower energy bills & lower greenhouse gas emissions. The infrastructure bill set aside funding to modernize eligible homes with cost-effective upgrades, like adding insulation to attics, swapping older refrigerators and other appliances for new, more efficient models, and replacing leaky windows and doors.
Republicans could have done that, but they didn’t. Their sole concern during the pandemic was their corporate benefactors to whom they gave infusions of cash to help them ride out the pandemic, totally
disregarding that corporations have lines of credit with banks that enable them to access financing for
short term loans quickly. Families don’t have that. They generally can’t easily access money to help them in an economic downturn. But the Trump admin. didn’t care about families.
Plus, as far as I can tell, about 95% of the media has taken a cue from the GOP and abandoned the truth, abandoned their role as educators & abandoned nearly all ethical constraints they once had, because just like republicans, media today is increasingly uninterested in truth. Truth doesn’t sell like lies and controversy sell. If all the media cares about is making money, and they sell more by pandering to
a market that wants sensationalism whether it’s real or not, then that’s what they’ll do. Nevertheless, it’s a foolish and shortsighted way to make money and eventually they won’t be taken seriously
Media moguls today apparently live entirely in the moment, much like republicans in Congress. They make decisions based on how much money they’ll make right now, without any thought for the damage they’re causing. It’s a love affair with money they consistently deny and then distract us from it with culture wars... the classic hey, don’t look here, look over there manipulation.
Corporations are no better. Corporate leadership has
taken the same route as American media-nothing matters but how much money they can make right now. If making money requires selling out our future and damaging our country-possibly permanently-
so what? They’ll be all right because they have a lot of money!
The most obvious example of corporate malfeasance is the oil & gas industry. They’ve known for many decades (not years- decades)that climate change is going to be a life-altering, mass extinction phenomenon and they knew what was causing it. But they chose not only to ignore it, they paid (bribed) our elected representatives and even a Supreme Court Justice or two to ignore climate change as well.
But some of our elected representatives went even further, they openly made fun of anyone on their immediate radar, colleagues, pundits, reporters, even experts who had the audacity to point out that climate change is real and unless we do something about it humanity will be destroyed. They probably thought they would be ok because they have lots of money from lying to the American people.
Our elected representatives in government have an
enormous amount of power. They set the tone for
our national discourse whether they realize it or not.
Our President has even more power. Their power can
be used to make a positive difference in the lives of millions of people. Our President fully recognizes his
power and uses it for the general good of all (see above) IF his plans aren’t blocked by members of the other party, who’s only agenda is to run interference for a lifelong, 100% self-absorbed criminal... because they foolishly think he’ll make them rich and powerful. And the hell with all of us as far as they’re concerned. They’ll be ok because they have lots of money.
Dear Robert,
I just finished reading The Dawn of Everything, by Graeber and Wengrow, and they present a more satisfying (and more complex) set of interactions in human affairs over the last 10,000 years, based on data, than the old Hobbes/Rosseau dichotomy. One of the things that comes up is the link between power and wealth. It never occurred to me that this link is not a given.
Not every culture has had a direct link between wealth and power, and many have explicitly broken that link to eliminate its toxicity. Our culture implicitly assumes wealth and power and ownership are the same thing, and while people grumble and whine, I've never heard anyone even talk about breaking that link entirely.
Yet there are many historic (and pre-historic) civilizations that have done so, and lasted for (apparently) centuries or millennia, with high standards of living. One example comes from the potlatch societies of the Northern Coast of North America. The potlatch "rulers" had fabulous wealth, and demonstrated their wealth by burning or destroying it. But their wealth gave them no actual power over the people. There are numerous examples of this in the book.
Our US American people are literally slaves to money, and this gives the wealthy incredible power over people. Graeber/Wengrow talk about three fundamental freedoms: the freedom to leave, the freedom to disobey, and the freedom to make/break binding social connections. Slavery, of course, denies all three freedoms. As a slave, you cannot leave, you cannot disobey your master, and you cannot make binding agreements with others, such as marriage, since your master can sell you (or your wife) to another master.
One working definition of relative affluence in US American society is the degree to which a person possesses all three of these freedoms. As you move down the affluence-scale, these all vanish. Travel in any form becomes more difficult as money vanishes, eventually leaving people stuck in one place. Binding agreements become more difficult as affluence decreases -- even a simple verbal contract of showing up for work is dependent on having enough money to keep your car working (as well as having a place and enough time to sleep, clean clothes to wear, and enough food). And virtually no one has the freedom to refuse: entirely apart from coercive government forces (e.g. police, military) everyone has a "boss." If you refuse your boss, you get shuffled out of the economic system, and have to hustle to get back in. A history of leaving bosses marks you as a "bad egg," reducing your income. Ultimately, you fall out the bottom as "unemployable." Every boss has a boss. The chain of "bosses" eventually ends at an "owner," but they are subject to a thicket of regulations, bankers, other owners, lawyers, and the like.
We need to be more inventive about how we organize society. That's clear. How we do that is not so clear, and it seems -- archaeologically and historically -- that the real impetus (and ability) to make those changes is the complete breakdown of the existing systems.
But I think it is helpful to look beyond the inevitable financial/social/environmental apocalypse we are driving toward, and consider, not so much what went wrong, but what we want to do next time.
A pithier way of putting it is that there is nothing wrong with how our economy functions. The whole problem is that its function is intolerable.
I think......we need RFK Jr !
With the exceptions of a few gamers who specialize in producing positive videos where they're actually having fun playing video games, the vast majority of the media is now so deep in their addiction to competition for profit, and so attuned to the very natural human tendency to pay attention to threats and danger, that there is almost nothing left but threats and danger to be seen anywhere.
Good news is boring, so it's not "profitable."
But it's also true that in a societal sense, we tend to get more of that to which we pay the most attention. Our media's dysfunctional pursuit of "damn the torpedos; full speed ahead" in their pursuit of ever-larger profits (and fame and fortune for their pundits), is destroying our society in ways that amplify and exacerbate the very worst innate features of human nature.
Religion used to serve as an antidote to these aspects of human nature, but ever since certain leaders in the Evangelical and the Catholic churches decided that they, too, could win fame and fortune for their very HUMAN institutions by creating the "culture wars," and declaring those who very sincerely believed differently were evil and threatening, religion has become, more and more about keeping people in the pews and money coming in by convincing followers that evil was everywhere around them, and adding to the sense of threat and danger everywhere.
These forms of "faith" are now chasing the very same temptations Jesus resisted in the wilderness with every fiber of their beings and have been seduced into valuing the promises those temptations falsely offer above all other considerations including numerous cautions, prohibitions, and admonitions offered in every section of their Bible, both older and newer testaments.
Meanwhile, there are many things that should concern us enough to motivate us to take action to counteract these very real dangers, (advancing fascism, global warming, the worship of money and the belief that those who have money are smart, must always be listened to and tenderly coddled, the idea that those who are struggling, economically are always lazy, the idea that any race is inherently superior to any others, the idea that a person's true worth has anything to do with their level of accumulated wealth, etc.), but calling attention to those REAL problems threatens the wealth and profits of those who own the media, so they are minimized and ignored.
Sadly, I fear that beyond our efforts to educate and bring to greater health and wholeness a public which is loathe to act against those who use its instincts and dysfunctions to manipulate and control it, the rest of us who are more aware and more functional likely need to be formulating plans for what's likely coming. If we can't prevent climate change from producing massive numbers of refugees which we're already seeing worldwide, though we're completely ignoring the cause, and which we're likely to soon see here in North America; if we can't forestall the massive numbers of economic refugees that are already being produced by fascistically-controlled capitalism - refugees who surround us in every corner of the nation, then perhaps we can begin to prepare ways to try to help and care for those who's lives have been turned upside down - to "welcome the stranger" in ways that are positive for them and for us.
Newcomers, welcomed, helped, and encouraged, can be a tremendous boon to any area. Perhaps we can develop means, mechanisms, and best practices to make that a reality.
People that don't pay taxes are theifs. Millionaires, billionaires and corporations that don't pay the correct ((not fair) amount of taxes are stealing from the country and the working man. They also take advantage of inflation and again they steal from the working man. Then they turn around and steal our votes. They pour millions of dollars on corrupt politicians.
Bob’s work will outlive him. Thankfully. As to the comments here, so many are missing the point about taxing the rich—so long as they own the process and politicians elected, nothing will change. We need a new form of taxation and I’m a huge fan of Scott Smith’s 0.25% financial transaction tax. That’s it. Eliminates all others. Brilliant 21st century mind . https://www.thefoundationforabettereconomy.org/bio
Congratulations, Dr. Reich, for providing this platform and for teaching and your government service. You are a giant amoung men. I hope you continue this platform after you retire. If I am not too depressed reading it regularly, I will subscribe. I am not a progressive. I believe, for the most part, we reap what we have sewn.
Is our collective American glass half full for half empty? I suggest it is way more than half-full. But we must improve. I have proposed two changes to my elected officials in writing.
TAX: We should tax capital gains as ordinary income and use the revenue to improve our public education system.
SAFETY: We must make assault weapons illegal as was done in Austrailia and New Zealand.
I agree with you that, as one who grew up in the middle class but has sunk to the lower income class over a career of about 40 years, my negative view on the economy is due to 1) I see that as I worked hard just trying to keep a job to support a family of 5, overcoming job losses due to dosizings and mergers. I could not put aside any money for the future and am retired on social security. I do not see this changing or at least 2 of my sons.
2) the wealth and income disparity are horrible and with the positions and the propagandists majority of the population, it will be very difficult to build back the regulations to reign in the power of the wealthy.
3) the mainstream media on which most people rely for news cannot be trusted. When Biden says he created a million jobs. What does that mean? Are these retail or gig jobs on which one cannot afford to live ? Are the manufacturing jobs at companies which will retain earnings to grow, or are they jobs at a company that annually pays out 105 % of its net income for dividend payout and stock buybacks. Which extract money from the company needed for growth and pay it out to the wealthy?
4) the closest we have to a tru progressive voice is cornel west. I am hoping he can get a large enough backing from voters that he can sway the Republicans and democrats to become more progressive.
The economy has continued to improve, but the nagging, and dragging, concern is all about housing affordability. Too few can afford decent and modest living quarters. Not sure what the solution could/should/would be but something dramatic has to happen with the skyrocketing rents and house prices in the real estate markets. It is one thing to say you're going to build more housing, but if the costs to purchase or rent are still too extreme to make a difference something else must be done. Time for some severe price regulations to get implemented in my opinion.
I think the media is fundamentally responsible for Biden's low approval rating. They continue to emphasize negative news - mass shootings, natural disasters, etc., - while downplaying good economic news. In fact, America is on the RIGHT track, thanks to Biden, but they give him no credit for it, echoing Republicans in Congress and on the campaign trail with their vicious and unfounded criticisms. while Republicans themselves are responsive for doing nothing to try to solve many of our nation's problems.
It is really depressing that we can't stop the money and power-grubbing of the rich that Republicans have been clinging to and encouraging for decades. Now that they have theirs, they are so addicted they can't even see anyone else. They are fully invested in getting their fix in the form of billionaire donations and speechifying in Congress with loud mouths, no positive ideas, and lots of insults to distract the nation from their bad behavior. Then, there's the media that are so dependent on the "largess" of Republican rich folks and members of Congress they just can't seem to cover the many things Democrats have been doing to make life better for the American people. What is the most significant story yesterday and today, a little bit of cocaine was found at the White House! Really! That's it. The NPR crew even had to bring up that Hunter Biden has had trouble with drug addiction. How does that have anything to do with what was found at the White House, in a fully public area? I guess it distracts from the gun deaths and woundings over the holiday weekend, so people will forget that it is Republicans who have blocked every attempt to get reasonable gun regulation. It is easy to see that overly busy middle and working-class people can be thinking things are so much worse than ever or something like that. They have been primed for decades to believe everyone is out to get them and that has been proven somewhat true on occasion. The problem, the cause for their pain and struggle is mostly Republican bad economic theories and practices, and Republican lack of leadership competence. OK, there's the Supreme Court too which in the past 45 years or so has been Republicanized and working hard to make this a white, pseudo-christian, rich-ruled, homo/transphobic, antiimmigrant nation. Unfortunately, a whole lot of decent Americans are succumbing to it, and in their unhappiness, think everything is bad, so why not vote for the people who have caused it. Yeah, that makes sense. Then there's the whole business insanity with monopolies, greedy price-gouging that is unchecked, a Fed that blames workers for our economic woes, and more. It's definitely sleep-disturbing!
Billionaires are destroying the WORLD! They are expendable and need to be stopped.
Who wishes to be a rich man in a poor man's country? Only those with greed, avarice and narcissism painted all over their faces. Money is a tool to be used for good or evil. Jesus would not, a bankster be.
So far, all they have achieved for themselves are bragging rights as to who will own the WORLD once the gold dust settles.
I submit Elon as exhibit 'Not2B' as 2023's sole alumnus to his own Carnegie [M]Elon Institute.....the grift that keeps on grifting!
Vote D for Deliverance. It's a 2 party system and only one party [D] chooses "small d" democracy over totalitarianism [R] for its people!
Thank you, Professor Reich. I am honored, to the point of gob-smacked, to be part of such an important day in your life. Thank you, Sir, from the bottom of my heart. I am overjoyed, though, that you will continue to be a voice, crying in this economic wilderness we call America. Again, thank you.
Somebody should light a fire under President Biden’s ass and tell him and all Democrats running for Congress next year to campaign on what the truth is. Why are they not doing this already?
The climate changes affecting many Americans, whether they believe or not, do not offer us a great sense of personal or economic security. The fact that there are two sides pulling against each other can cause whiplash. Still, I am old and the future of America doesn’t really belong to me. I have always treasured our democracy but perhaps younger Americans are more cynical and feel that our government is already in the hands of the wealthy and corporations. I don’t think they know what to do about government though. Without a plan and with the challenges and possible chaos of environmental issues ahead America might just end up in anarchy,
Good morning, everybody from the great state of California, the worlds fourth most largest economy! First, Mr. Reich, I can tell you reasons why channels just like Fox News and Newsmax are only telling one side of the story and not the other. Those people on Fox News and Newsmax are nuts! They are by definition retarded! if there’s one thing my father taught me regardless of the words, he used, you can be born, intellectually, disabled, but you can act retarded later on in life, that which is probably why he used that word with me and probably why am I sister called me that word in the past. Nevertheless, the people at Fox News and Newsmax are by my definition retarded! The other thing is that, and this is combined with the third thing I wanted to say. People in Missouri are refusing to get rid of their subminimum wage is that they pay for disabled people in places like valley industries, and Canterbury enterprises. Those are workshops where people with disabilities are paid subminimum wages in the state of Missouri. I called Missouri the workshop or sheltered workshop capital of the United States. I only know of one person who is disabled, that who works at dollar tree. And third, while the minimum wage in California continues to increase, the federal minimum wage is stagnant and only $7.25 per hour! This is finger fucking bullshit! We need to keep in mind, fast food jobs, yes, them finger fucking fast food. Jobs aren’t just for teenyboppers anymore! You have many people with disabilities that who work in fast food. If that means that people have to order from a kiosk, or on their apps on there, androids or Apple iPhones, so be it! That leaves other positions open for getting peoples drinks if they’re coming through the drive-through, grilling burgers, or that whatever, and deep frying. So those finger, fuckers at Fox News and Newsmax that they’re retarded and so are the people running the state of Missouri! Once again, good morning from California, the fourth largest economy in the world!
So, apparently what the public needs most is the economic information that is failing to reach them. Unless I'm mistaken there's an election coming & 50% of Congress who are Democrats and directly responsible for the results. If we reflect back on 2015, the person flooding the airwaves on a daily basis, the one who provided everything the public absorbed & ultimately won the election in 2016 was not a Democrat. In other words, every Democrat needs to get more involved in determining what the public receives as facts - not the fake news peddled by the Republican PACs bought & paid for by the wealthy elite from BigCorp.
Those who voted Democrat in 2020 & 2022 must be encouraged to understand that reversing 50 years of anti-democracy political corruption won't happen with only 2 elections. They must be shown that the current trends in the economy are improving in the face of all the negative trend brought about by SCOTUS decisions & Republican authoritarian policy. The Democratic uprising started with women as a voting block deciding they weren't going to be controlled by men & the anti-woman radical right. But the ball must be kept rolling by all people who believe in Democracy.
Anything less than 100% of Democrat politician's time not spent advocating Democracy over the next 16 months unacceptable. Democracy is a choice, if you want it you must demand it.
Professor Reich, it's time for a second teaching career, this time teaching the general public. We are bombarded with so many false narratives from malpractitioners of economics that the facts, facts supported by data, are not just unknown to much of the voting public but are not even recognizable buried in the noise.
Regarding my charge of economic malpractice, I believe the measuring metric of inflation is wrong and misleading. Inflation should refer only to the inflation of the money supply, which is why it's called "inflation." Price increases due to supply versus demand are not inflation. They redirect spending but do not cause a general price increase in a free market. The increase in the Consumer Price Index is NOT a measure of inflation.
The fact that we are experiencing general price increases beyond that predicted by the money supply does not contradict the previous statement. To the contrary, it proves the demise of the free market in vital industries of America. Adam Smith predicted that a capitalist system left to its own devices, i.e., lacking regulation, will degenerate into cartels and monopolies. We put lipstick on this pig calling it "corporate consolidation." A profit based system without free market competition is feudalism, not capitalism. Smith's readers would not need that explanation, but Republicans have misled too many Americans into believing that profit alone defines capitalism. Our problem is an antitrust issue, or what I prefer to call corporate feudalism - just replace land barons with barons of industry and their extorting monopolies. We forgot the history from 1890 when the Sherman Antitrust Act was passed and subsequently vigorously enforced by Teddy Roosevelt.
%Increase in Consumer Price Index - %Increase in Money Supply = Extorted profits by industries with only token or no competition.
If the products are on the shelves, it's not a supply chain issue, but even in that case, it's the lack of competition by shippers.
Calling all price increases "inflation," not just those from inflation of the money supply, gives cover for the trusts extorting higher prices than a free market would permit. The statistic being reported is patently false, but its appeal is the ease in measuring it. The above formula is problematic due to the time lag between the increase in the money supply and its effect on the economy. Separating the figures would expose the antitrust issues at the heart of our present monetary problems.
We probably can't stop the government and others from calling it "inflation," but we could qualify the term when using it: Inflation is X% despite the money supply increasing only Y%. The reason is... Those profits go to the barons of industry, the economic elites (coastal to be near their yachts), who use them to corrupt government into permitting them to further expand their fiefdoms.
Auditors track the cost of goods sold. Easy to prove price gouging.
Here, close to Seattle where I live. the cost of living has increased a lot, more than my stagnant retirement income. Utility rates have increased steadily, especially electricity, natural gas and water. Food prices are going up weekly. But I worry more about climate change and the hotter, dryer days, and the dirty air which makes my life less healthy. So I’m not feeling optimistic.
GREED
I'd like to attend this class, as I have long admitted your writing in the Guardian, not least your most recent column on fascism. But far as I can tell, you don't say what time the class is, and you don't supply a link that would help us access it. Pls advise
It will post here tomorrow. You can watch all previous Wealth and Poverty class videos posted here for the last 13 classes/weeks every Friday.
The extreme income inequality we are experiencing, which is making two-thirds of this country feel hopeless and depressed or very, very angry, is a political choice. Congress COULD tax rich people a fair amount, but they won't. They could institute a windfall profits tax to help stop businesses from gouging consumers, but they won't. They should address the housing shortage, but they haven't. I'm a senior trying to survive on $15K a year. I'm about to hit the wall, thanks to rapaciously high rent. This is the first time in my life I've had NO options. "Rent a room," some might say. Yeah, I've considered that, but have you seen what people are asking for a room these days? I can't even afford that, and it's making me desperate. I'm scared all the time, because all I need is for the car to break down (can't afford to fix or replace it at current interest rates!) or to fall and break something (Medicare only covers 80%, and gap insurance is too expensive, so I'd better not break anything! I'd better not get sick at ALL). The truth is I can no longer afford to live in this country. :(
The truth about the economy is what the masses are feeling and not what silly politicians analysis or statistics say about it.
I see volumes of negative misinformation flowing from the Trump Train. I do not believe the Biden Administration has spend enough time and energy pumping up and singing a positive song about the direction this country is has taken in the past year or so. If you watch any of the interviews of Trump supporters they will all falsely claim Biden hasn’t done anything for the country during his presidency. They all claim there is nothing they can say “good” about his policies. In my humble opinion, Biden hasn’t done a good job providing positive information that can contradict the massive amount of misinformation coming from the Trump Train.
Unfortunately I feel like it’s not just the big guys increasing prices unreasonably.
My husband and I do alright together and have been fortunate enough to be able to go out to dinners, shop or go away once in awhile. But now we avoid going out as eating out has almost doubled in price while the quality of food and service have gone down. Same for shopping for food or clothing which have more limited supplies and sometimes no service.
Yesterday I tried to book a trip using coveted points saved while we couldn’t travel. I still had to pay a significant amount more to not sit by the bathrooms on the plane and to get a room in a hotel where guest reviews negatively comment on the lack of cleanliness and service no matter which place you choose.
It’s all very discouraging.
Not Biden’s fault... but feeling like everyone’s looking to increase profit for less quality and service is frustrating. It has driven me to grow my own vegetables, cook my own meals and spend less in the economy overall.
Last class; I'll have tissues close at hand. Beyond the content - which I'm certain will be excellent - this special occasion is already generating some anticipatory tears. (I recently taught my own last class, so your departure from teaching will be tapping into a source that is a bit swollen and ready to go.)
It was wonderful that you opened this course to non-Berkeley students. There are many of us who would never otherwise have the opportunity to participate directly as your student. ¡Mil gracias!
Housing, child care and education, yes; but let’s not forget medical care and, for that matter, food.
Have you heard of " The Chapwood Index " -- it is probably a more-accurate indication of urban inflation, than any other index . It was registering over 14% in some cities, during the pandemic .
You are delusional. People like you retire for a reason. Not only is the Harris Biden administration a disaster, they are poised to make an economic tyrannical takedown of the economy. At center of Harris platform is to do price fixing. Read the landmark book 1944 Friedreich Hackey, The road to Serfdom. In it, the world renowned economist points out that price fixing by the government leads to tyranny and eventually a dictator. Wake up America, we have a wolf and sheep clothing with harris and the democrats. (oh, and by the way, where’s all that infrastructure the $8 trillion Obama and Biden got to keep water from flooding in the valleys of North Carolina in the cities in the hurricane alley of florida. See. More tax and spend liberals. Instead mayor, Pete came to detroit tore out a perfectly good highway. Said it was racist and rebuilt a park. The election can’t come soon enough throw them out on their ear.
You people are so fucking delirious. It’s not funny. Our economy sucks. I can’t even afford to pay my fucking bills and I’m on retirement. You people are in another planet.
My grandmother was able to raise 5 children as a SAHM in what is now a million dollar home on the salary of a John Deer salesman. My generation has to have both parents working 2 jobs to not go in debt to raise one child. It’s more than job numbers, it’s the escalating cost of living and decrease in quality of life. Housing? Yes. Food? Yes. Taxes? Yes. Childcare? Yes. It’s all yes and families are suffering. There is no American dream we are too busy paying the CEO’s and pet politicians projects. Give the people back their America or eventually they will revolt.
Unemployment is much worse than reported. Going back to work is not job growth. They killed our economy intentionally to get Trump out of office. A government willing to destroy it's own people is not one to trust or believe what come out of their mouths.
Are you sure you went to Canada? I have family all over Canada and they do not share the same sentiment! Have you ever heard of Medical Tourism? That's when you can't get the help you need in time to save your life in Canada, so they come the the US for treatment and it happens a lot! My aunt had a cancer and couldn't get help in Canada in time to save her life so she came to NY for treatment. Plus most good Drs from Canada come to the US to practice because they make more money. So the Uber rich don't contribute to the economy either? Wow, this whole comment section gets more and more delusional. The top 1 percent of taxpayers paid $723 billion in income taxes while the bottom 90 percent paid $450 billion. The share of income taxes paid by the top 1 percent increased from 33.2 percent in 2001 to 42.3 percent in 2020.
Left and right they are all full of it. I have a product ID manufacturing facility in NY and I can tell you that most company's I work with, especially that deal in retail, are in dire straight, such as the apparel industry. More clothing manufacturers moved manufacturing from the USA to overseas locations since COVID than re-shored manufacturing back to the US even with all the bla bla about fast to fashion is bad for the environment, they doubled down. If you are told otherwise you are being misinformed. I've seen my company cut in half over the last 2 years and I've operated this company for 30 years, through 2 previous recessions(3 including covid), and this is the worst I've ever seen it. Just look at the most recent Empire State Manufacturing Survey www.newyorkfed.org/survey/empire/empiresurvey_overview.html general business conditions index fell to its lowest level since 2020 as low as levels during the 2008 recession and some want to paint a picture of how great things "really" are, seriously!? LOL
Insightful analysis highlighting economic progress and challenges. Your perspective on overlooked positive trends is enlightening, emphasizing the disconnect between macro-level growth and the struggles faced by the majority. Amidst these economic complexities, TaxZerone stands out as an invaluable IRS-authorized e-file service provider, simplifying tax filings for businesses and individuals across various forms securely. Explore stress-free tax compliance at www.taxzerone.com.
There are two types of constraints: internal and external.
Internally, indeed, the several hundred billion dollars given by the USA to Ukraine is a major burden. This money has only partially been returned through the sale of liquefied gas, oil ……to the EU. Obviously, the ones who have profited from the situation created are the arms industry and the industrial components that gravitate around it. But certainly, the money has gone into the hands of a few already rich people and the population, as you rightly said, is getting poor because it must bear the costs of war and high international tensions. The downturn of the banks, especially the US banks, is sure to create a recessionary wave in the EU and the world at the end of the year...even if inflation has apparently decreased (only on paper). The maturing real estate funds in the US will have to be paid for by someone. Who is it ?
Externally, the threats are multiple: BRICS limits the circulation of the dollar and threatens to de dollarization. A normal phenomenon and will become visible in the medium term. The US is in open war with Russia and veiled war with China. The EU is less and less willing to follow the US in the war in Ukraine, which it has itself provoked. The EU is getting more poor every day and Taiwan is a business that the EU is reluctant to get involved in.
What is certain is that the life of the common man will become harder and harder in the face structural radical changes. What is next?
The people aren’t really feeling how “good the economy is” cause for many those numbers alone aren’t an adequate reflection of the economic opportunity for most Americans. Most of us want some room to breathe and rest
There seems to me to be a trait of USAers that they to often look in the wrong direction sometimes and long time continue to look in that direction befor they find a new wrong direction to look in.
Being super rich is not always a bad thing. It depends in how you use it and what you do to society. Warren Buffett and Carl Ichon are a couple of examples. One uses his wealth in a way that ultimately benefits society and the other seeks to line his pockets no matter what the costs to others. Mr. Buffett buys companies that he thinks are good companies and seeks (with excellect results) to make them sustainable and he made a fortune doing just that. Ichon just lines his pockets. Just standing around and passing out money to poor people never solved any problem because it is not sustainable and never will be. Lets not get into the mentality that the top is just evil because they are not. Buffett once said: A jerk is just a jerk and a jerk with a billion dollers is still a jerk. No one in their right mind would ever pay more in taxes than they owe-no matter whay your personal opinion is. We need to remember that how much we owe has never been the problem but the cost of borrowing that money (interest) can (and will) inhibit what we are financially able to do later.
Don’t go
Will you be making your series available on substack? I wasn't able to watch them all but feel they are so valuable that I am making time to go through them now.
Yes, benefits of economic stability/growth are not evenly/fairly distributed.
Thank you
I'm going to shoot off in a different direction than tax abuses. I wonder, Robert, if you or anyone you know has studied the effects on the economy of the loss of more than a million people to Covid. At least a third to half of those who died had jobs and/or investments, probably more than half vacated the worker market. Wouldn't this suggest that our job increases might have improved in favor of the workers? I haven't seen this question dealt with, but I don't read everything. Does someone out there know the answers to this question? Did the Grim Reaper tip the scales in favor of higher employment?
When "news" comes from sources that can be successfully sued for printing falsehoods, rather than the BS information sources who have armies of lawyers to protect themselves or make their money on internet clicks, then we have a chance of getting truthful and useful information. Until then many will be influenced by outlets whose purpose is to bend the truth for financial reasons instead of reporting facts.
Offshore tax havens have been the go to solution for the wealthy since the crusades (The Spider's Web Britain's Second Empire (Documentary).mp4 (youtube)). How on earth can a society allow many of the super rich to own fleets of multi million $ yachts (some costing more than warships at over $100M) when people are starving and sleeping in the streets of the wealthiest countries of the world? The estimated trillions of USD sleeping in tax havens could solve world poverty in a heartbeat and probably put an end to most military conflicts too. These wealthy criminals obey the laws (that they paid to create) but they are criminals killing millions every year by their political manipulations and greed. Why are they not stopped? Thank you so very very much Mr Reich, please don't stop exposing these unfair and unjust practices.🙏❤
There's a general disgust in America thats been going on for some time Rump started the insane politics 8 years ago and we've never recovered Americans are just sick of the violence , the killing of children, the endless wars , the money inequality, and the latest charade(s) by the Supreme Court trying to undo our rights. People are dreading an ugly toxic Presidential campaign and they are right in their feelings
M...
Americans think they have gotten all they can get out of Joe Biden. Now they want to switch to Republican leadership so they can get a tax break from them. When they have gotten that out of Republicans, they will switch back to Democrats to see what else they can get out of them. Sorry to be so cynical, but Americans are only interested in what they can get out of government, not in giving credit where credit is due or any sense of what's in society's best interest.
2/3s are non college grads, with stagnant wages, but the grads expect them to pay off the student loans. Makes sense.
Right on the money and ideas; *dread, headlines worse every day, woke up today to happy faces discussing nuclear war! *post pandemic PTSD and *hottest day on record one day and the one after, climate. I don’t know how anyone enjoys life with these things going on, especially in the shrinking middle class where my funds continue to deplete. At 75 years old, alone, disabled, my choices are limited to the world around my sofa, virtual communication and stalking the “happy” lives of others as they travel this summer. Looking forward to your last class and what you think about it!
You left out the sense of doom coming from the climate crisis and the lack of confidence in what this country (any country) is doing to stop fossil fuels extraction and counteract the problem. Even folks who have vague or wrong ideas about climate change can't help but be affected by the non-stop sequence of threats and disasters all over the country. On some level, people know we are on a bad track. And shall we add to that the feeling this country is not taking care of its own? Healthcare for starters.
Dear, dear, Dr. Reich. While I am so very sorry to know that you are retiring from university teaching, I want you to understand that, as a former teacher and one who loves to share what I have experienced never stops. You will be teaching for as long as you ere alive!
Sincerely, Jan McCoy. Age83, still learning, still sharing what I have learned. Best regards.
P.S. I truly hope you will remain writing your columns for they inspire me to be a better person.
Politically Biden is caught between a rock and a hard place, to aggressively address the fascist threat could easily explode into social unrest but to expect that good governance alone is an effective counter to extremism is delusional. Economically your last paragraph says it all. But as the rich get richer and the poor get poorer the rich have to go to extremes to defend their economic castles and in today's world that means funding the economic hatchet men to convince poor people that poorer people are the problem.
We had the Carnegies and the Rockerfellers at one point. They called them “ magnets”. This is the second round of “ robber Barrons” but this time there are more of them.
Canada had the same problem of the outsized profit margins that many major businesses have seized for themselves, especially supermarkets, so our government has started an investigation into it. Why doesn't the US government do the same?
I think the media is complicit in Bidens bad ratings, and he doesn’t deserve that. We all know the media is owned by large corporations who don’t wanna pay taxes so of course they’re not gonna tell the truth. It infuriates me, bc I hate liars. And cowards. (One & the same).
In addition to the good points that Prof. R makes about why Americans feel so bad about an economy that's actually doing OK, I would add three more:
- Taken as a huge whole, Americans are discouragingly poorly educated and ill informed in general. Even if people do come across data indicating, for example, job growth rate or GNP growth or investment in productive capacity, they don't seem to understand what story the data are telling.
- The concentration of the news industry and the resulting outsized influence that, for example, Murdoch and Sinclair gain is exacerbating the problem greatly. "News" has to a great extent become infotainment, and as presented by outlets with ideological axes to grind, It's either incomplete (people don't even hear anything that might be positive or constructive) or spun so ferociously as to basically be propaganda. Thom Hartmann had a good post touching on this the other day: https://hartmannreport.com/p/will-the-day-come-when-americas-reporters-77e?utm_source=substack&utm_medium=email
- The Dems persist in being astonishingly terrible at public relations and communications, missing opportunity after opportunity to expose the lies and hypocrisy, tell their story, repeatedly pound home the same core messages. Yes, I know, there are precious few outlets not obviously biased or stuck in the false-balance trap (see Hartmann's column), etc., etc. There are still outlets; there are still ways to get the word out. Persistent, loud Dem voices will get attention and will get column inches in WaPo and NYT, airtime on cable, etc. But the voices have to be speaking up, all the time, every day, refuting the bullshit that the Rs routinely pump out, pointing out the positives over and over again, spelling out for everyone (see first point above) where progress is being made and why that's good for folks in general. But the Dems just can't or won't do it consistently, across the board, throughout the heartland and from coast to coast, day in and day out. It's as if the Dems continue to think that the electorate in general will somehow magically just come to its senses one of these days, see the light of day, and throw the extremist bums out. Obviously, when one side is flooding the zone with shit and poison, that ain't gonna happen; the general public, which typically isn't exposed to a breadth of information and wouldn't know what to make of it anyway, will think the world is nothing but shit and poison. But the Dems don't seem to realize that and don't do much to counteract it.
Thank you
I agree
I am happy for you and wish you all the best. Congratulations . Thank you for sharing your knowledge and for your service to others.
Boycotts of particular companies have proven successful in the past and it might be time to try that tactic again. https://www.ethicalconsumer.org/ethicalcampaigns/boycotts
While most of these boycotts are based on human rights issues and other concerns, it's time to hit some of these folks in the profit margins, and others as well. News media and social media boycotts might prove valuable.
There have been articles about movie "blockbusters" flopping. I contend this is because the average consumer of movies doesn't have the money to go to the movies. The "better off" consumer would rather stay home.
Thank you, Professor, for this class. As my grandmother would say if she were still here; "I'll be there with bells on!" And p'haps a comment about the issues you raise, too.
Not all of us who say we think the country is going in the wrong direction are talking about the economy or the president's agenda -- some of us are referring to the continued rollback of reproductive and human rights, the proliferation of gun culture, and the menacing rhetoric from the right. If pollsters want to know if we think the _economy_ is heading in the right direction, maybe they should ask that question instead.
When banks are charging nearly 30 percent interest on credit cards but paying only 1 percent interest on savings accounts, people can’t get ahead. Where is Elizabeth Warren and her Consumer Financial Protection Bureau? And Jerome Powell needs to stop helping his whiny buddies in Corporate America.
Thank you for sharing your valuable course, Professor. It has enabled us to grasp confusing indicators and arrive at sensible models of the social world of which economic life is an indispensable reflection. Throw in politics, and it becomes more difficult to imagine a feasible program to ameliorate conditions across the social spectrum, but gaining a clearer sense of the many and varied barriers to progress has value in itself. We stand at a childish point in our national history where too many of us observe the world as if it revolved around us, a sort of cultural flat-earth syndrome. Your teaching opens up visions of more realistic possibilities. Now we can get down to some serious work!
I believe the people in polls are the ones who watch Faux News and other unreliable sources. They listen to the doom and gloom all day and night and don't know their butts from a hole in the ground.
As a follower of Professor Reich’s sage observation for some time, and of general human behavior where economics come in, I must say, “Lots of luck.” An equitable society is something money can’t buy.
Myriad suggestions have been bruited about for creating a more equitable society among the followers of this site and many others over the centuries, but this is nothing new. It’s the same old hackneyed palliatives that have been suggested or attempted time and time again. Get the government to do this and that. Tax the wealthy. Storm the palace. Off with their heads. Or - how about a minimum living income?
It should come as no surprise that what we call the government – those who pass down the do’s and don’ts under whose strictures we live – is in thrall to the corporate juggernaut that overlords the production of and access to the goods and services we need to live. The “government’ has handed over the reins bit by bit over the past couple of hundred years and is just as happy to let them dictate their actions, and the show. Resist playing ball long enough, and it’s off to the showers.
The allotment of a minimum financial stipend to provide basic necessities to those in need is a tempting idea. I would assume that means food, clothing and shelter. Fine. But what happens when the supply side, chock-full of as many excuses as the designing, dominance-oriented human mind can conceive, suddenly ups the ante (witness the present insanity in housing prices, for example)? What then? Subject it to endless debate in cloistered halls of special-interest wonks (AKA Congress) to kick it back and forth interminably while people and furniture are moved out to the sidewalks? Same with food and shelter. It’s all priced according to scarcity of supply, as any Economic 101 student can tell you.
Suggestions involving the reshuffling of the house of credit cards that is our economy is like offering a Tylenol to cure a brain tumor. As entrenched as money is in our psyche of greed, we have been led to forget that what we need is not money; it is access to goods and services. Money is simply another device of human construct that we and governments for millennia have agreed to honor as the medium of exchange, despite its corruptibility, erratic nature, and our tendency to trade off everything of real value to keep the wolves of debt out the door.
If we seek true equity, we need a new plan.
Seems there is no money in good news. Why Joe's rating are so low is beyond me. One has to admit he didn't walk into a bed of roses, unless you want to talk about their thorns.
It is all about money and the ultra wealthy and them ripping us off! And we are ALL carrying the ultra wealthy around on our backs as they get break after break after break after break.... Check out the Patriotic Millionaires and their quest to Tax the Rich - like them! Check out the "Great Economy Project" at AmericanAgenda.com/Online. See their 5 part series: (1) The Big Picture, (2) They Ain't Worth Much: CEO Pay in America, (3) The Cost of Billionaire Philanthropy, (4) Best and Worst of Working in America, and (5) Taxes, Taxes, Taxes (Everything else is BS!). (You will learn that when they give to charity WE foot the bill to the tune of about 3/4 of every dollar, those who work for a living get the short end of the stick and foot the bill, the ultra wealthy and corporations are NOT job creators, they pay next to ZERO in taxes....). Goal for us all to pressure EVERYONE and EVERY party in Congress: Change the tax code to make it fair and equitable! Now it favors the ultra wealthy and it is getting worse and worse and worse and worse.................. (Neither Democrats nor Republicans have completely clean hands on this.)
How do I access your last class ever Professor Reich?
I just deleted the litany of complaints I have about the current circumstances. Robert Reich is not to blame for any of them; in fact he has done more than most people to address the causes of economic inequity. In honor of his retirement and the last lecture tomorrow, I'm getting off my soapbox, although, like Scarlett O'Hara, I'll probably think about them tomorrow.
One idea that seems to be missing is that the oligopoly controls the value of the dollar, e.g., through inflation. There are many tentacles for this but I think primary is the lack of anti-trust enforcement for at least 40 years, then NAFTA.
Thank you, Professor, for your service.
Oh please.....now I know why liberals are liberals...they are educated by you
The economy for the majority isn’t just about inflation, the stock market or GDP. It’s about - can I buy a new car, find affordable housing and get good childcare? Our blue collar kids are able to get good healthcare these days so that isn’t as big of a deal as it has been in the past. What they face everyday are the above mentioned costs as well as how much they spend on groceries and gas. They are not educated in the long term view of things. If we want optimism we need to show them palpable changes in what impacts them day to day.
Trump's numbers were about the same. I think the country is so evenly divided/polarized that that's the best anyone can do, no one can get over 50% anymore.
The relative grimness of so many Americans may be attributed to Biden's moderation. I wish also that the president would push for more measures that would raise taxes on high wealth and bring balance to the Supreme Court, among all the other possible progressive goals. Maybe he knows more than he shows. Progressives must work harder to win more seats everywhere possible.
I appreciate your comments, David. The "sugar pill" that tipped me into thinking about inflation was the last of the series. It was definitely not the pandemic relief bill or the infrastructure relief bill. But rather, something that he did on top of these that brought the question of inflation to mind. So we are in agreement on more than you realize. The comparable inflation period was the era that straddled the Carter and early Reagan administrations. In that case the Fed went big on interest rates and threw the country into a sharp recession. -- And you're right, the Afghanistan pullout was less of a mess than Viet Nam. They didn't foresee the Taliban arriving immediately on their exit. It should have been very obvious.
The American people will not hear the truth about the economy as long as the media is owned by gigantic media cirporations who by their very existence are rightwing. This goes back to reagan who changed the regulations about news bieng presented on the Media. it used to be before Reagan that the news depts in Media corporations were non-profit Depts that were run with no blatant bias and weren't run for profit Reagan changed all of that . He said that corporate CEO's could run news programs for profit and could say any thing that they wanted . The giant TV Networks are owned by. Comcast Rupert Murdach, Disney Corp, Time warner I beleive and well yiou get the picture. Read Noam Chomsky on the american Media if you want a rell good analysis. Thank You Daniel Slade
We could tax excess profits as they do in Europe. We could prevent buying back more than a certain amount of stock. We could roll back the tax change in the 1970s that allowed corporations to tax-deduct executive pay or bonuses that were tied to "performance." ("Performance"= stock price.)
There are so many things we could do. But even democratic politicians treat them like a 3rd rail.
The big question is what the dissatisfied majority of Americans think the Republicans are going to do to improve the lot of average Americans ?? I haven't heard anything like the concrete proposals that the Biden administration has put into effect to make our lives better.
I would love to see all low paid wage earners really start to appreciate themselves for the necessary
work they do. Every diaper they change, every dog they walk, every meal they cook and serve ,every floor they clean ,paper they grade and every child they comfort, litter box they clean, and all the work
that must constantly be done to make everybody's life better. Not every body can or should aspire to a good education, All of this other work will still need to be done so lets make sure they are all paid
a living wage, and appreciated for 'unskilled labor '. It is NOT unskilled, it's under appreciated. They are all The Faeries of The Universe, washing the windows, building the roads, and were it not for them
rich people would have nothing but dirty empty houses, crumbling around them.
Like in most elections, the majority of voters are casting their ballots not _for_ the candidate that they actually want, but rather **against** the candidate that they don't want to win. (Voting for "the lesser of two evils.") Do you _want_ Biden? I don't want Biden; I want Bernie Sanders.... but he's not on the ballot. But I most definitely do NOT want Trump, and so I will vote accordingly. As will the vast majority of Americans, voting **against** rather than _for_.
UNFORTUNATELY, in a race between Biden and Trump, the population is splitting 50/50, and there are a whole slew of influences that can and will swing the outcome one way or the other. But regardless of who wins, you can be certain that the LARGE majority of voters never actually wanted "that person" to win.
Kudos to Biden for exceeding expectations. After all, he has been a lifelong corporatist from Delaware. Too bad the Democratic Party boomers hung on for so long and never groomed anyone younger to take the helm. (Obama was never young.) But really, the die was the cast when Reagan destroyed the unions. The Dems never recovered and only survived by becoming Republican-Lite.
In my 71 year old's opinion, the only thing that might save us now is a whole lot of "good trouble" because the oligarchy will yield nothing without a threat. I was crestfallen when Roe was overturned and there was not a single call for a general strike. The Reagan revolution got us to this wasteland. Incrementalism won't get us back into the garden.
I have appreciated your lectures and I try to get my kids to watch them to gain understanding and insight, but they're like the working people in Sandburg's poem, too busy toiling to stop and think things over. It's good and necessary that you are teaching these things to the potential leaders of tomorrow though. When and if they come into power, they will be ready. You're obviously taking the long view.
My wife and I are 62. And a question people keep asking us that gets on our nerves is "When are you going to retire?" They think we are joking when we tell them we can never retire! We have no savings. We are living paycheck-to-paycheck. We can pay our bill every month. But there is little left over for anything frivolous like a trip somewhere on vacation. We are on a knife's edge! Any health emergency or domestic disaster could ruin us in a heartbeat. So, No. We don't see the Economy as getting any better. Our economy hasn't changed at all except that the cost of living keeps going up when our paychecks do not. Retire??? You still have to eat and pay bills when you quit working. Who is going to pay for that if we don't? So we have to keep working until we die.
Robert, keep beating that dead horse. The reality still leads back to where is the propaganda coming from. The Media and Social-Media is perpetuating the false narrative of gloom and doom. Instead of presenting the facts of where all the money is flowing and where and who is allowing it to flow in only one direction. True you have a platform to voice your opinion and you do it well and accurately. However, your limited soapbox of common sense means little to the obvious injustices that are occurring within the large-scale media conglomerates. That's why the rich get richer and everyone else gets screwed. Because those Executives of those Media entities make it their right of passage to not report the facts you so rightfully convey.
I totally agree with you!!!!
Biden should tell Americans ALL the things he has accomplished to make our lives better during his term. We just hear what he has not done from the Republicans
I think there's an underappreciation of how badly inflation has hit the bottom 50% on the economic ladder. After, all, if workers found that their real earning power had slipped by 18% 10 months ago, and now find their earning power is "only" 16% behind prices, that is little consolation. Joe Biden characterized the inflation reduction act as a win-win for people and for businesses but there really is never a win-win for both the economic oligopolies (oil, foodstuffs, building materials and the working classes. We live under institutionalized banditry, and are so inured to it that getting our wages and salaries decimated by the corporate avarice is just business as usual.
Yeah, “overall” is quite misleading and the majority who aren’t in the rich economic category really feel the dichotomy
I spent 3 hours on a FaceTime call with a British Ex-Pat friend who's lived in the US 10+ years to an American wife. He's not eligible for Healthcare even at 65 and he says the US is a 3rd World State because of Trump and the Republicans. That's why the Democrats need to pull a Roosevelt and shout about Biden's achievements. Years ago Trump overt here in the UK said if he ran for POTUS it would be with the GOP as they were STUPID
Robert, the value of a dollar in my lifetime has greatly diminished. I estimate that it's worth about 1/12 what it was in the 1960s. When I say that the rich have stolen over a hundred trillion dollars from the middle class the last 60 years, that would be in today's dollars. Anyone who wants a maximum wage approximately 13 times the minimum wage will be called a communist. Not a limited capitalist, which would be the true definition. I hope you have some connections to people in positions of power to educate the right wing brainwashed cult members,(TV commercials) before it is too late for all of us that cannot afford to leave this once great country. There are many of us that would donate money to that cause, hopefully the commercials would become self-sustaining with donations. Please put a bug in their ear, thank you. You are famous.
I remember that back in the 1980s we thought that Communism failed because a top-down, government-directed economy lacked sufficient valid data to allocate resources efficiently to produce what people needed or wanted.
Now consider our current circumstances, with many families living paycheck to paycheck, unable to afford health care, safe housing, healthy food, or quality education; and our environment polluted, climate warming, species disappearing; and an increasing number of refugees fleeing climate disasters and failed states.
It seems fair to state that our "invisible hand" market economy and global capitalism have also failed to allocate resources in an efficient, sustainable manner. Market prices do not reflect the total cost, nor the true value.
I live in Tennessee where Republicans are dominant and they listen to Trump, who is constantly negative. Democrats are frustrated and discouraged, and independents are very few. There are Tennesseans who pay attention to what's going on with the development of new industries in our state, which is one of the few good things our state government has encouraged. Jobs are highly available in Tennessee. The other good thing the state has encouraged is the establishment of free college education at state community colleges. Health care in Tennessee? Terrible! The state still refuses participation in the Affordable Healthcare Act.
All of your messages are classes to me, and I'm grateful for them. So, thank you, Robert, and keep up the good work, please (but we all know you will).
"...the working middle is under worsening siege.“
And therein lies the answer to why most people think the economy is in bad shape. The working middle comprises most of the population.
And as one of those in the middle, I see increasing corporate policies to steeply cut workers' benefits. Small businesses often don't provide healthcare. There's less paid time off, more restrictions on how time off can be used. More off-the-books, unpaid work required. Salaried workers have to be wired in 24/7. Contract workers have to be available from 8 to 5 every day, but may only get paid for working 10 hours a week, take it or leave it. In short, working conditions are worse than ever, but wages are drastically low, with draconian productivity mandates. This is real life among the working middle.
And yet, prices at the grocery store remain outrageous, even if they've lowered a few percentage points. Healthcare costs are also outrageous, and trending ever upward. Health insurance companies have perfected price gouging and claims denial. ACA insurance is likewise one big racket, with rising premiums for all but the truly poor. The working middle bears the brunt. Decent housing is becoming completely out of reach. Only a few in the working middle can have only one job, live alone, have healthcare, and afford transportation and healthy food. More frequently, even two people can barely scrape by and have those things.
In short, the economy is most definitely not sunshine and roses for most of us. THAT's why we feel things are on the wrong track. A $15 minimum wage and single-payer healthcare would go a long way to remedy the pain, but nobody in government except Bernie Sanders is interested in those things.
Professor Reich, thank you for this latest post and for your invitation to your last class (as you say, "ever"). You will never stop teaching us... and we're looking forward to notices about guest lectures, in effect, other kinds of classes. We are so deeply grateful for all the knowledge you have imparted and will continue to impart.
But wait...what does it mean for Americans to believe we are heading in the wrong direction?
Is it all economics? (Yes, we need to change our tax policies and structures, and reign in corporate welfare and power, but NONE of this is going to be done before the election!)
Perhaps it is because Americans are feeling our societal split and a dearth of Democratic leaders with a plan to stop Trump. It is disheartening, at the least.
The Democracy Party must address the issues that people are voting on...now, now, now.
There is no room for them to say, "but we tried."
Apparently bankruptcies, both business and individual, are up this year, facing student loans while seeking a good-paying job, the possibility of never being able to buy a house, trying to live on a real fixed income -- these are all economic realities for many people. It's not only about inflation. :(
Cap profits, break up mega-corporations on a global level and levy, collect reasonable taxes.
Several economists have said that our economy is stratifying with roughly 70% of households struggling, 30% doing reasonably well, but only a few percent reaping most of the growth. If this is so, the 30% might be sustaining "growth" in spite of inflation while the 70% struggle ever harder. Unless we, especially some respected media, parse this situation, each interest group will live in a fragmented world of their own incompatible facts and broad interpretation of the "economy." Who and how can anyone speak to all these strata so that we can see ourselves as one America? How can we establish an ethic of sharing the wealth to parallel the reality that we all work hard to create this wealth?
And yet polls indicate otherwise, do you think these polls are inaccurate? I think they are.
Dear Mr. Postmaster General, thank you for your clear concise analysis of the moribund political situation. What to do?
God forbid that we will get an authoritarian dictatorship (Fascism), but if Trump has his way we might, given the dire statistics of the working class who have not graduated from college.
How do we attend tomorrow's class?
Robert,
As someone who has recently retired I would tell you this: "You won't miss working". Time to brush off the bucket and pull out the list. My son told me recently that I was borderline elderly. I wanted to share an incredible amount of angst that rushed to my head, but he's right. Please do what you can, while you can.
All the best to you on the next chapter of your life.
John
Addressing the True Colors: Exploring Poverty, Immigration, and Water Crisis in America
Glad to know everything's wrapping up real good for Professor Riech and your last paid job is coming to an end. Well that's good right man.
Yes that's what the news media says that the economy is going very well but my thoughts go in a different direction. And that is obviously populous. There are more people in this country now so there's more money but poverty Remains the Same as well as the lack of jobs, just more people doing the work.
So what comes to mind is who does the work. You've been driving through McDonald's to get that cup of coffee for senior citizens. It's recommended to actually look at the person and most likely it'll be an immigrant and then there's that thought who is doing the work.
You don't hear Mom's for Liberty complaining about Social Security Medicare or Medicaid not having enough money to feed their kids. on the other hand I was thinking finally the Beast has shown its true colors and finally not being quiet or two faced.
Problems in rural areas are similar to what's going on in New Mexico, the development of rural areas but the lack of one thing: water, septic and septic filtering. There are some communities because of that lack of water that have to have their water trucked in.
And today similar to things going on in Israel and San Diego County, water is being processed and redistributed into the community. And the start of a really big problem is depleting the ocean itself. A natural resource not being noticed today but the possibilities of treating natural wastewater and ocean water resources in this country in the past similar to the lumber industry and deep cleaning water in the future should be about the same, catastrophic.
Where to start......https://www.pbs.org/wnet/ascentofmoney/
Much to the point — Can’t agree more with everything you said, Professor Reich! 💯
Agree. I'm always looking for ways to decrease my taxes. The really wealthy have many ways. I keep dreaming up with business ideas then decide reading is too much fun! I do believe being around bright young people is great fun and builds hope. Helping others and volunteering for good purposes always brings joy. I'm a retired educator of 35 + years. Riches in life have never been measured in $.
The economy is getting better. Biden is a world class statesman. But he’s a lousy salesman.
The middle and lower classes are suffering and don’t trust the gu’ment. (Thanks Ronnie!)
Some things as simple as healthcare, childcare, elder care could make a monumental difference but these things don’t happen for reasons that escape me, sort of.
The orange dufus can sell hatred because people want to believe that it’s somebody’s fault (fill in the blank) and Mr. Machismo is the man to fix it.
It’s unfortunate that Americans buy this line of garbage from the quintessential snake oil salesman but it’s easy to see how sewing hatred is works with this crowd that feels collectively left out.
Trickle Down was a bad joke and our country has suffered as a result. Our democracy has suffered. And we now find ourselves in a colossal bind where the USA could follow the Viktor Orbán/Hungary path to illiberal “democracy”. Sad.
There is no easy solution. It took many years and lots of underhanded tactics by the Republicans to manipulate the courts in their favor which allowed them to rig the 2016 election. They show us every single day that they are the White Supremacy Party! Trump was their nominee because he was ignorant of the Constitution and was and still is willing to overthrow our Democracy. Voting is all we can do so we need to vote Blue and then hold the Democrats accountable.
Trump got elected because the plutocrats knew that he would protect their money. And that’s why I think Biden or his proxy will beat any nut job that the Republican Party puts up in 2024. If the plutocrats don’t want a nut job running the country (again), it won’t happen. The canary in the coal mine was the Koch brothers forking out $70M to run anti-Trump ads the other day. Unfortunately, for the right, DeSantis has negative charisma.
"So the obvious question is, why are Americans are feeling so bad about an economy that’s relatively good?"
Well said Professor Robert Reich! Has anyone ever heard of 'The Laws of attraction'?
Negativity begets Negativity, and we are surrounded by that with MSM and other stuff.
And we know who the enemy is, stay awake. In truth we are just building mind muscle, so pay attention to nature, what's left of it and go outside and look up at the night sky, I find that helps me put things into perspective.
It continues to amaze me year after year. Election cycle after election cycle the Democrats can't sell there successes while Republicans sell their half-truths and distortions. Democrats must get out front witb he facts and quit playing catch up to Republican misinformation.
Blaming right wing and mainstream media for the lack of acknowledgement of the economic progress being made is convenient BUT it doesn't account for my personal observation (yes not scientifically accurate) that the Democrats have, in my view, always been abysmal at getting the"good news" out and overriding the boogeyman of right wing and sluggish mainstream media. I've been watching this pattern for the last 40 years - Right Wing media trumps (no pun intended) the left's ability to share their good news and better than republican's performance (when it is) year after year after year and they always blame the right and an "insufficient to the cause" mainstream media. When do the democrats take responsibility for their abject failure to toot their own horn , stop wringing their hands and playing the victim in this. Whose fault is it really that the good news about Biden's efforts isn't making it through? Are the republicans the only ones with truly competent PR machine.?
Biden can't get more respect because he can't control the rich getting richer. If his make the rich pay their fair share tax plan had passed, I think he'd be viewed much more favorably. Hold the Senate and flip the House. Pass his plan, restore the child Tax credit and finish the job on student loans and watch what happens.
Tony
I would love to watch "the last class" tomorrow....presumably at this URL, but what time?
Hello Professor - I have learned so much from you, even though I've never actually seen you in person! Thank you for sharing your gifts of knowledge, sincere sense of humor, and kindness with us all. I come from a family of teachers, so I know a good one when I see them. I sincerely wish you a long and happy retirement, but I hope you'll come back to visit us online!
Best regards,
Ilene Costello
‘An all over sense of dread for lunatic Presidential candidates being accepted. For a dysfunctional Supreme Court. For a Judge who s job is to outlaw the Biden administration from contradicting any far right lunacy on social media .
For the fact that a criminally indicted ex president to have a shot at running and winning after joining forces with Putins patsies to push Trump to win the presidency for the second time.
For a country who doesn’t disallow an indicted individual who creates a plethora of Security Challenges that sells out to our enemies. Who doesn’t respect the truth and loves the lies. Who s whole power lies in being a ‘crazy maker ‘ for all of us .
When we know were being lied to and cannot understand why theres a question about what we know to be true and why am i so shaky about what i know to be true because the lies become overwhelmingly confusing and chaotic . And thats exactly what he wants . Trump.
The best alternative candidate( GOP) is Ron De Santis . A hater of all . And deployer of lies that destroy people he doesn’t like . I suspect he has serious identity issues. Why else is he attacking the people that have struggled with this ? And allows his raw hatred against any person who is not straight, white or a male politician with no conscience.
It’s shocking to me that the only comments posted are in support of your ridiculous as usual statements. You can blame it on Fox News all you want, but the average citizen feels the detrimental effects of Biden’s policies in their sky high utility bills and food costs, coupled with shortages of basics like baby formula. Topped off by an tone deaf administration who constantly tells them, “who you gonna believe, me or your lying eyes”? No wonder his approval ratings are in the toilet and circling the bowl.
Biden’s accomplishments are like the ‘little train that could’. It’s chugging along in the right direction. He’s accomplished a lot in spite of intransigent Republican obstructionists.
Totally agree. I live in the Seattle area and the economy is definitely, obviously improving for us. My brother lives in rural Wisconsin and it seems all down hill for him and those around him. He doesn't like Trump (any more) but doesn't like Biden either.
There is no messaging about the economy that is reaching the average person, and especially not “the base”. You couldn’t change their minds about the economy if you tried. They are all in on Biden=Bad. And facts don’t matter. They are firmly convinced it’s all Fake News.
You will be missed, Mr Reich. I have learned a lot from you. Enjoy now your retirement and thank you for all you have given.
Robert, so long as you speak out, you'll be educating. Good luck "retiring"! lol
(Pancha Chandra): Every thought you express is filled with brilliant significance: you inspire others with your generosity of spirit & amazing thoughtfulness; you are a fountain of knowledge & immense goodwill!
One has to wonder if all those 'profit takers', the uber-wealthy who are trying to pull us back into the Guilded Age, have read about what happened next?
One thing that we need NOW, is a much louder megaphone for this type of 'news'. The GOP and their supporters/funders are very loud , repetitious ....and very successful with their messaging, especially their lies and distortions.
I too lose sleep over this stuff. I’m retired and have been for 12 years. Have become much more involved and informed in politics because I have the time. Working people don’t have the time. Unless it’s a major interest of theirs they don’t take time to become informed. And the monied interests that support the R’s throw out garbage, outright lies that people listen too
Absolutely agree.
Yes, pandemic ptsd. A life-death crisis that has hung on for surprisingly long time. I run a lecture series (The Progressive Forum--thanks Mr. Reich for appearing during the pandemic!). Ticket sales last year were half what they should have been. Same with all arts venues around the country. But now, we and everyone else are seeing robust sales---people are ready to get out again! Finally! A good indicator for Biden's future poll numbers.
You are spot on re negativity, and I think the Democrats need to pick up the pace re the good news. I believe most Americans are optimistic at heart, and the Democratic Party needs to get off their higher moral ground fantasy and back President Biden, with a constant message of the good that has been accomplished. We need pick me up moments, we have them, we need to spread the good news. Hoping that the Republican Party self destructs is going to get the job done.
Thank you. Love you.