Relying on the Fed to bring down prices is like treating someone’s fever by putting them a freezer. It doesn’t treat the underlying disease, and could make things far worse.
Just curious in the USA: Why do people talk about going after the oil companies and not the pharmaceutical companies? Or going after non profits and churches that don't pay any taxes. Like the NRA, NBA, NFL. Just curious to hear others thoughts.
Biden at his core is a corporate Democrat. He appointed as Fed chief a person who was approved by Trump, for devil’s sake. He was Vice President when the big banks were deemed “too big to fail.” He should use the bully pulpit to advocate for a windfall profits tax on the bloodsucking gas and oil majors, but he won’t. He might be able to push a windfall profits tax by executive order as a national safety issue, but he won’t. Biden at his core is a good old boy Washington insider, and they wouldn’t do anything as “radical” as fight for a windfall profits tax.
I would love to be proven wrong on this, and would gladly eat crow if I am.
President Biden needs to take lesson from FDR’s Revenue Act of 1935 that introduced a “Wealth Tax” of up to 75% on the wealthiest Americans and President Carter who enacted a crude oil “Windfall Profits Tax” in 1980. Capitalists will scream socialism and undoubtedly try everything they can to stop him, including padding the pockets of republicans to act on their behalf, but he needs to ignore them and do it anyway through “Executive Order," or by eliminating the filibuster.
Raising interest rates is not going to help, the Feds aren’t seeing the big picture here, it will hurt the average American who is already struggling with low wages and high costs. It’s already difficult to qualify for a home or auto loan, with higher interest rates it will be impossible. Credit card debt will soar as families struggle to pay for basic living expenses. The only ones who will benefit is Wall Street as they bring in even higher profits.
I don’t know who can get through to the President, but I certainly hope someone can before it’s too late.
I wrote a letter on the White House website asking President Biden to support a windfall profits tax, and saying that raising interest rates will make things worse for low and moderate income families. I know they likely won't listen to me as an ordinary nobody, but it made me feel a bit better to do something.
I will say it again! We are past argument and words; nothing will change in congress short of millions of people in the streets in protest. Congress is dead. Scotus is dead. The voting booth is dead. And the longer we delay the smaller the chance of saving the skeleton. Where the hell is Thomas Paine?????
". . . relying on the Fed to bring down prices is like treating someone’s fever by putting them a freezer. " Couldn't agree more. The Fed does not have proper tools to fight inflation without creating higher rates of unemployment or worse. Unfortunately, Congress has better tools, but . . . well . . . good luck with that.
Maybe someone could rank the Fortune 500 companies by the percent of increase in their pre-pandemic marginal rates of saving vs. current marginal rates of saving. This would, at least, allow us to see who is exploiting the current inflationary bubble (besides the oil companies).
I agree with you on all of this, especially your comment about the passivity in both the Obama and Biden administrations. Not only were the banks bailed out, not one of the big honchos served time in jail for their defrauding of the people. Too bad Bernie or Elizabeth Warren isn’t President. They aren’t afraid of pissing people off.
Robert Reich provides valuable, very timely and relevant statistics on profiteering by big oil. But, the thrust of his piece focuses on an excess profits tax - that is not an effective strategy because it has to be legislated and Republicans wil stop it with a filibuster in the Senate. Besides it will take months. A better approach is available.
Reich fails to point out that Biden can impose price controls by declaring a national emergency. Trump declared one when he relied upon the non-existent "invasion" on our southern border to build a wall. Surely the fleecing of the American people by big oil justifies declaring a national emergency. That is effective national action! It would change Biden's status with the American people overnight IMHO.
Cecilia J. is absolutely correct. Sadly, taxes only apply to the lower and middle classes. This is all fed by our archaic (and presently self-destructive) political system, a pseudo-democracy.
Thanks for addressing this Robert. Ugh, what can I say....I just wish Biden's brain could function differently in how he views the problems we are faced with and how the political environment that he's navigating in is NOT the one he dealt with decades ago. He just made a horrible tone deaf, foolish statement about how rational/decent he thought McConnell and Cornyn would be on gun legislation....those moments of political nostalgia and timidity really scare me. The ineptitude and sheer fear to take on the GOP must be addressed by Democrats who can take the reins and forge progress. There's plenty of talk, is there anyone who can step forward? Even Kamala Harris's addresses to the nation recently have fallen flat. What happened to her feisty charisma, charisma? Biden's brain dead approach to bipartisanship will be his undoing, starting with government agencies where he allowed Republicans to remain in control, Jerome Powell for one. Many government agencies are filled with Trump loyalist, what a massive mistake.
Just curious in the USA: Why do people talk about going after the oil companies and not the pharmaceutical companies? Or going after non profits and churches that don't pay any taxes. Like the NRA, NBA, NFL. Just curious to hear others thoughts.
Biden at his core is a corporate Democrat. He appointed as Fed chief a person who was approved by Trump, for devil’s sake. He was Vice President when the big banks were deemed “too big to fail.” He should use the bully pulpit to advocate for a windfall profits tax on the bloodsucking gas and oil majors, but he won’t. He might be able to push a windfall profits tax by executive order as a national safety issue, but he won’t. Biden at his core is a good old boy Washington insider, and they wouldn’t do anything as “radical” as fight for a windfall profits tax.
I would love to be proven wrong on this, and would gladly eat crow if I am.
President Biden needs to take lesson from FDR’s Revenue Act of 1935 that introduced a “Wealth Tax” of up to 75% on the wealthiest Americans and President Carter who enacted a crude oil “Windfall Profits Tax” in 1980. Capitalists will scream socialism and undoubtedly try everything they can to stop him, including padding the pockets of republicans to act on their behalf, but he needs to ignore them and do it anyway through “Executive Order," or by eliminating the filibuster.
Raising interest rates is not going to help, the Feds aren’t seeing the big picture here, it will hurt the average American who is already struggling with low wages and high costs. It’s already difficult to qualify for a home or auto loan, with higher interest rates it will be impossible. Credit card debt will soar as families struggle to pay for basic living expenses. The only ones who will benefit is Wall Street as they bring in even higher profits.
I don’t know who can get through to the President, but I certainly hope someone can before it’s too late.
I wrote a letter on the White House website asking President Biden to support a windfall profits tax, and saying that raising interest rates will make things worse for low and moderate income families. I know they likely won't listen to me as an ordinary nobody, but it made me feel a bit better to do something.
good to have a carbon tax on those who can afford to pay it; then to use the payments for cost effective programs for the poor
What CAN Biden do that doesn't require approval from Congress/Senate?
I will say it again! We are past argument and words; nothing will change in congress short of millions of people in the streets in protest. Congress is dead. Scotus is dead. The voting booth is dead. And the longer we delay the smaller the chance of saving the skeleton. Where the hell is Thomas Paine?????
". . . relying on the Fed to bring down prices is like treating someone’s fever by putting them a freezer. " Couldn't agree more. The Fed does not have proper tools to fight inflation without creating higher rates of unemployment or worse. Unfortunately, Congress has better tools, but . . . well . . . good luck with that.
Maybe someone could rank the Fortune 500 companies by the percent of increase in their pre-pandemic marginal rates of saving vs. current marginal rates of saving. This would, at least, allow us to see who is exploiting the current inflationary bubble (besides the oil companies).
Let's copy the Brits!
Britain’s conservatives are reasonably intelligent. America’s ‘conservatives’ are bat guano crazy trump ring kissers. Major difference.
I agree with you on all of this, especially your comment about the passivity in both the Obama and Biden administrations. Not only were the banks bailed out, not one of the big honchos served time in jail for their defrauding of the people. Too bad Bernie or Elizabeth Warren isn’t President. They aren’t afraid of pissing people off.
Robert Reich provides valuable, very timely and relevant statistics on profiteering by big oil. But, the thrust of his piece focuses on an excess profits tax - that is not an effective strategy because it has to be legislated and Republicans wil stop it with a filibuster in the Senate. Besides it will take months. A better approach is available.
Reich fails to point out that Biden can impose price controls by declaring a national emergency. Trump declared one when he relied upon the non-existent "invasion" on our southern border to build a wall. Surely the fleecing of the American people by big oil justifies declaring a national emergency. That is effective national action! It would change Biden's status with the American people overnight IMHO.
Leonard Polletta
Cecilia J. is absolutely correct. Sadly, taxes only apply to the lower and middle classes. This is all fed by our archaic (and presently self-destructive) political system, a pseudo-democracy.
So he can pass a windfall profit tax without Congress?
If inflation is still high two years from now Biden is toast.
Thanks for addressing this Robert. Ugh, what can I say....I just wish Biden's brain could function differently in how he views the problems we are faced with and how the political environment that he's navigating in is NOT the one he dealt with decades ago. He just made a horrible tone deaf, foolish statement about how rational/decent he thought McConnell and Cornyn would be on gun legislation....those moments of political nostalgia and timidity really scare me. The ineptitude and sheer fear to take on the GOP must be addressed by Democrats who can take the reins and forge progress. There's plenty of talk, is there anyone who can step forward? Even Kamala Harris's addresses to the nation recently have fallen flat. What happened to her feisty charisma, charisma? Biden's brain dead approach to bipartisanship will be his undoing, starting with government agencies where he allowed Republicans to remain in control, Jerome Powell for one. Many government agencies are filled with Trump loyalist, what a massive mistake.