In order to achieve real change for the better we'll need publicly funded elections so there won't be any need for personal campaign treasuries where graft can be deposited. Perhaps then there will be genuine servants of the American constituents who need help more than the wealthy who have everything that they need. As long as the politicians aren't made into multimillionaires after a few terms at the trough and willingly accept the pay and great retirement and benefits that they are offered upon gaining public office then perhaps some sanity will return to our public servants. Perhaps.
as an unemployed person who has an excellent education from an excellent university and who WANTS TO WORK, i can say without reservation that unemployment is traumatic and soul-crushing. without my work, i quickly discovered, i am a nothing. invisible. worthless. reviled -- in those rare moments when i am noticed. treated as if i have a communicable disease -- again, in those rare moments when anyone actually sees me. worse, i am blamed for my unemployment. so i wish i could add something useful to your very cogent comments on this topic, but it is difficult to think creatively when the topic is one that fills me with rage, with depression, with despair.
The problem is, the people who make these decisions favor the bond traders over the working class because it’s about lining their pockets, not doing things in the best interests of the majority of the American people they are supposed to serve.
You're forgetting another element, Dr. Reich. The desire of politicians to stay in power, no matter the cost. Admittedly, this power thirst is more prevalent among the Republicans, but it also exists with some Democrats. Short of term limits with which I disagree, I don't have a good plan to offer, I hope you do.
I find it outrageous that every time rich white guys get together to discuss economics, the working people, you know, the ones who actually keep the economy going, are the ones blamed: they want to be paid too much (slavery was so much better); workers don't have the skills; if unemployment is too low, Wall Street will lose . . . something. Then Powell and his crew, men who will never feel the pain of trying to raise a family on the edge, proclaim that there will be some pain but that's what is needed to get things back on track (or some other nonsense, OK BS. The media has pretty much ignored the price gouging from the corporations we the people have allowed to avoid paying taxes.
What is wrong with us as a people that we accept a man who has not had particular success at the Fed deciding the future of the working people of this country? Bonds and stocks are important, but when they become more important than the women and men whose work put companies on Wall Street, we have lost our soul. Powell has no clue, yet Biden forgot his Democratic bona fides and reappointed him anyway. We're stuck with him, but there must be a way to limit his power to wreck the lives of our people.
I don’t care about bond traders, thank you. I want working people who are not rich, with families to support, to feel secure and hopeful and be able to build up savings.
So Jerome Powell admitted that raising interest rates won't lower the cost of fuel and groceries, but he's going to do it anyway? This just adds to the pain of ordinary people, because their credit card interest rates now rise, and it's more difficult to afford a house. Yes, the cure is worse than the disease. These people in their ivory towers can't move beyond their own mindsets. Of course, Republicans were chastising Powell for not raising interest rates sooner....
There's one other category of people difficult to employ: those with felony convictions who have served their sentences, and with one of the highest incarceration rates in the world, we have plenty of those.
If we took money out of politics how would republicans every get elected. Most politicians are bought and paid for but some are worse as in our corrupt court system.
Yes, I agree that bond trader's confidence should take a backseat to the interests of the working people. If we are to have government of, by and for the human people that makes sense.
yes you are on the mark - our system is crazy with constant battle between stock market and labor market. Barrell oil price goes up share holders thrilled while gasoline goes to $5 and working class are depressed. Interest rates go up bond holders thrilled while labor in todays World looses. Yet in 1940s 50s 60s when stock market indexed on dividends and unions wages indexed on CEO salary + benies and tax laws were truely progressive both groups were happy. That all changed when retaliation of Goldwater loss was organized into a 'greed' revolution. Um
When will Americans realize that throughout human history, the wealthy and powerful have always run things for their own benefit? Today, here in the United States, it's not any different.
If we really want to make positive change for all Americans, we need to fight for democracy and our rights by electing people who will fight to maintain and expand our democracy, and our basic human rights as well, and hold accountable at the ballot box and in the courts those who would weaken democracy and ignore basic human rights.
So far as I'm aware, there's only one political party that ascribes to those principles most of the time, and need to be constantly reminded that being a public servant means being the servant to the people. That's the Democratic Party. Remember to vote Democratic all down the line in November.
Bond traders are generally quite wealthy and part of the "Ruling Class". So our paid off "elected representatives" will defer to them rather than to the working class. That's part of the Feudalistic rules. The only way to fix that is for the electorate to become informed (screen out the rubbish) and vote for their best interests. We need to realize that the ultra wealthy are spending billions each year on propaganda to fool the common people.
Does anyone remember when our government froze prices to stop inflation? If they are really concerned about inflation, and the cause is corporations price-gouging, stop them with a price freeze. Allow prices to decrease but not increase. Or call on the corporate/business leaders to be more civic minded, more community-oriented.
End-stage capitalism is working exactly as expected: our economic policies are transferring wealth from workers to those with extra capital to invest. The most profitable corporations buy or bankrupt their weaker rivals; hedge funds strip equity and resources from "poorly performing" companies; and profits flow to investors while communities struggle to provide services to their indebted citizens.
Communism, fascism, and capitalism all concentrate wealth and power into the hands of the elite. Only worker socialism, with strong credit unions, worker cooperatives, employee-owned corporations, and unions put power into the hands of those who produce actual goods and services.
By the way - maybe a lot of those unfilled jobs have been abandoned by workers who have gained jobs paying $15/hr and no longer have to work two (or more) $7.50/hr jobs to feed their children.
Inflation is somewhere between 6 and 10% (the true rate and its true sources are guesstimates). The riskless real interest rate is historically about 2-3%, therefor the nominal interest rate on short term government bonds should be at least 8%+. That would lead to bankruptcy of the many "zombie" businesses that are not profitable and require persistent infusions of new loans at currently massively subsidized negative real interest rates. This has to end. It is stealing real wealth from savers and retirees to subsidize "dead weight" businesses along with their employees. (The federal government also needs a low rate to easily fund the national debt) Unemployment of the under skilled, obsolete skilled and undereducated would rise. But it should not be national policy to attain full employment on the backs of savers and retirees by massively distorting the nominal interest rate. Training programs are needed for the underemployable. And a massive weaning off of government expenditures is needed to deal with deficits.
In order to achieve real change for the better we'll need publicly funded elections so there won't be any need for personal campaign treasuries where graft can be deposited. Perhaps then there will be genuine servants of the American constituents who need help more than the wealthy who have everything that they need. As long as the politicians aren't made into multimillionaires after a few terms at the trough and willingly accept the pay and great retirement and benefits that they are offered upon gaining public office then perhaps some sanity will return to our public servants. Perhaps.
as an unemployed person who has an excellent education from an excellent university and who WANTS TO WORK, i can say without reservation that unemployment is traumatic and soul-crushing. without my work, i quickly discovered, i am a nothing. invisible. worthless. reviled -- in those rare moments when i am noticed. treated as if i have a communicable disease -- again, in those rare moments when anyone actually sees me. worse, i am blamed for my unemployment. so i wish i could add something useful to your very cogent comments on this topic, but it is difficult to think creatively when the topic is one that fills me with rage, with depression, with despair.
The problem is, the people who make these decisions favor the bond traders over the working class because it’s about lining their pockets, not doing things in the best interests of the majority of the American people they are supposed to serve.
You're forgetting another element, Dr. Reich. The desire of politicians to stay in power, no matter the cost. Admittedly, this power thirst is more prevalent among the Republicans, but it also exists with some Democrats. Short of term limits with which I disagree, I don't have a good plan to offer, I hope you do.
I find it outrageous that every time rich white guys get together to discuss economics, the working people, you know, the ones who actually keep the economy going, are the ones blamed: they want to be paid too much (slavery was so much better); workers don't have the skills; if unemployment is too low, Wall Street will lose . . . something. Then Powell and his crew, men who will never feel the pain of trying to raise a family on the edge, proclaim that there will be some pain but that's what is needed to get things back on track (or some other nonsense, OK BS. The media has pretty much ignored the price gouging from the corporations we the people have allowed to avoid paying taxes.
What is wrong with us as a people that we accept a man who has not had particular success at the Fed deciding the future of the working people of this country? Bonds and stocks are important, but when they become more important than the women and men whose work put companies on Wall Street, we have lost our soul. Powell has no clue, yet Biden forgot his Democratic bona fides and reappointed him anyway. We're stuck with him, but there must be a way to limit his power to wreck the lives of our people.
I don’t care about bond traders, thank you. I want working people who are not rich, with families to support, to feel secure and hopeful and be able to build up savings.
So Jerome Powell admitted that raising interest rates won't lower the cost of fuel and groceries, but he's going to do it anyway? This just adds to the pain of ordinary people, because their credit card interest rates now rise, and it's more difficult to afford a house. Yes, the cure is worse than the disease. These people in their ivory towers can't move beyond their own mindsets. Of course, Republicans were chastising Powell for not raising interest rates sooner....
There's one other category of people difficult to employ: those with felony convictions who have served their sentences, and with one of the highest incarceration rates in the world, we have plenty of those.
If we took money out of politics how would republicans every get elected. Most politicians are bought and paid for but some are worse as in our corrupt court system.
Yes, I agree that bond trader's confidence should take a backseat to the interests of the working people. If we are to have government of, by and for the human people that makes sense.
yes you are on the mark - our system is crazy with constant battle between stock market and labor market. Barrell oil price goes up share holders thrilled while gasoline goes to $5 and working class are depressed. Interest rates go up bond holders thrilled while labor in todays World looses. Yet in 1940s 50s 60s when stock market indexed on dividends and unions wages indexed on CEO salary + benies and tax laws were truely progressive both groups were happy. That all changed when retaliation of Goldwater loss was organized into a 'greed' revolution. Um
Again, them what have gets!
When will Americans realize that throughout human history, the wealthy and powerful have always run things for their own benefit? Today, here in the United States, it's not any different.
If we really want to make positive change for all Americans, we need to fight for democracy and our rights by electing people who will fight to maintain and expand our democracy, and our basic human rights as well, and hold accountable at the ballot box and in the courts those who would weaken democracy and ignore basic human rights.
So far as I'm aware, there's only one political party that ascribes to those principles most of the time, and need to be constantly reminded that being a public servant means being the servant to the people. That's the Democratic Party. Remember to vote Democratic all down the line in November.
Bond traders are generally quite wealthy and part of the "Ruling Class". So our paid off "elected representatives" will defer to them rather than to the working class. That's part of the Feudalistic rules. The only way to fix that is for the electorate to become informed (screen out the rubbish) and vote for their best interests. We need to realize that the ultra wealthy are spending billions each year on propaganda to fool the common people.
Does anyone remember when our government froze prices to stop inflation? If they are really concerned about inflation, and the cause is corporations price-gouging, stop them with a price freeze. Allow prices to decrease but not increase. Or call on the corporate/business leaders to be more civic minded, more community-oriented.
Why are we surprised?
End-stage capitalism is working exactly as expected: our economic policies are transferring wealth from workers to those with extra capital to invest. The most profitable corporations buy or bankrupt their weaker rivals; hedge funds strip equity and resources from "poorly performing" companies; and profits flow to investors while communities struggle to provide services to their indebted citizens.
Communism, fascism, and capitalism all concentrate wealth and power into the hands of the elite. Only worker socialism, with strong credit unions, worker cooperatives, employee-owned corporations, and unions put power into the hands of those who produce actual goods and services.
By the way - maybe a lot of those unfilled jobs have been abandoned by workers who have gained jobs paying $15/hr and no longer have to work two (or more) $7.50/hr jobs to feed their children.
Inflation is somewhere between 6 and 10% (the true rate and its true sources are guesstimates). The riskless real interest rate is historically about 2-3%, therefor the nominal interest rate on short term government bonds should be at least 8%+. That would lead to bankruptcy of the many "zombie" businesses that are not profitable and require persistent infusions of new loans at currently massively subsidized negative real interest rates. This has to end. It is stealing real wealth from savers and retirees to subsidize "dead weight" businesses along with their employees. (The federal government also needs a low rate to easily fund the national debt) Unemployment of the under skilled, obsolete skilled and undereducated would rise. But it should not be national policy to attain full employment on the backs of savers and retirees by massively distorting the nominal interest rate. Training programs are needed for the underemployable. And a massive weaning off of government expenditures is needed to deal with deficits.