Why isn't it also BAD NEWS for the do-nothing Republicans who have blocked every piece of legislation that would help working American families??? Also, inflation is affecting the entire world, NOT just the USA, so how exactly are the Democrats or Biden to blame? Any member of the GOP who blames Democrats for inflation should be slapped across the face so hard their teeth rattle - am sick to death of the blame game and NOBODY IS DOING ANYTHING TO SOLVE THE PROBLEM!!
The Republicans need only repeat the word "Inflation" "inflation" 'inflation" and "Biden" "Biden" "Biden" and their voters will automatically blame Biden.
Biden could easily deflect that type of propaganda if he took a strong and consistent stand against the "market power" companies that are causing problems. But doing that would hurt fund raising for the Dems. So he ignores the issue.
Because commodities prices typically rise when inflation is accelerating, they offer protection from the effects of inflation. Few assets benefit from rising inflation, particularly unexpected inflation, but commodities usually do. That means inflation should decline.
The prices of gas at the pump are falling. Today's report does not show that rates are down.
Thank you once again Daniel. I never follow the stock market (not exciting enough I guess) so I am forever indebted to people like you who do follow and understand the ramifications.
Thanks but I don't think you give Biden credit for anything.
All he has is moral suasion. He asked OPEC to help but until now thwy have refused. He warned oil company CEOs that he's considering invoking emergency powers to boost U.S. refinery output. He called out the refineries. He called out Exxon.
The Saudis control OPEC, the "market maker" for the price of oil internationally by fixing output. The Saudis own the largest oil refineries in the US and control a number of US oil producers. We are in a crisis caused by the pandemic and the US should take on profiteers here and abroad.
On April 12, 2020, under pressure from the failed former president, the world’s biggest oil-producing nations outside the United States agreed to the largest production cut ever negotiated.
OPEC, Russia and other allied producers slashed production by 9.7 million barrels per day (bpd), or about 10% of global output. Half that volume came from cuts of 2.5 million bpd each by Saudi Arabia and Russia, whose budgets depend on high oil-and-gas revenues.
This was done because the dramatic reduction in demand caused by the pandemic reduced gasoline prices to the point where it was hurting American oil company profits.
To protect those oil companies, the failed former president essentially extorted the Saudis to cut production.
In the meantime American oil companies have achieved record, multi-billion profits. While no president is responsible for the price of gasoline at the pump, largely a function of supply, demand and corporate greed, the disgraced former price fixer went to enormous length to cut supply.
Once demand was restored, we were stuck with Trump's short-sightedness.
I was not aware that Trump actively negotiated or strong armed the Saudi's and Russians into reducing production. I thought the pandemic did that.
I am always on board with blaming Trump for everything but I was not aware that this too was his fault.
The US President can't easily control global oil prices. That i understand.
But what makes no sense are oil company profits soaring way above the increase in crude oil prices.
That is where the President can do far more than moral suasion. He can have Congress put the CEO's of these companies and their corporate treasurers infront of Congress. Let Katie Porter and Elizabeth warren question these war time profiteers.
If CNN and Faux news did not have the 1/6 hearings to drive viewers seeing Big Oil execs get destroyed by Porter and Warren would not only get better ratings it would put real pressure on the oil companies to act before congress is forced, by voters, to act for them.
That would be much more effective than a strongly worded letter signed by the President. So far his efforts are weak because he does not really want to push Big Oil or any other large industry.
A problem is that Biden and the Democrats aren't succeeding in making any of that clear to GOP voters. They're also not making it clear that the Republicans intend to wipe out Medicare and Social Security. GOP voters don't believe any of it. It's all true, though, so a lot more needs to be done to convince them.
You got that right. The GOP fully intend to wipe out SS and MC and if the reaction of woman to killing Row is any indication then i think Americans are not willing to fight to hold on to any of these entitlements.
I honestly though that woman would be out protesting in the streets until the Supreme court was removed from office.
Instead they screamed and whined until it was out of the news cycle and then just shrugged "what are you going to do"
Yes, i think you are spot on and us progressives are going to let it happen
Moral suasion isn't his only tool. Biden could stop arming the Saudis, especially in their fight against the Houthis, supported by Iran.
...Never mind, that would require Biden to actually act tough
OPEC and the Saudis, Russians, Venezuelans would rather make more profits with the US controlled by the GOP, with or without Trump, but preferably with. Like the GOP, OPEC is willing to let the economy plunge if it will increase the GOP's electoral gains over Biden
Yes Biden has many more tools than moral suasion. My point is that he has failed to leverage this tool because (a) he appears to be cognitively impaired, as we saw in the debates (b) he really does not care about anything much more than giving the donor class what they want.
It's too bad Biden cannot nationalize part of the oil industry, to control prices.
But, speaking of nationalized oil producers and OPEC [ok: OPEC-plus], is there a viable way the US could help Pemex upgrade and reduce pollution in exchange for lower gas prices here and improved relations with Mexico?
Neither you or Mr Reich mention the main causes of inflation, government spending, American Rescue Plan; and the war on Fossil Fuels; both initiated by Biden on day one. I agree there are Global factors. If this is war time like Biden dates, the US could and should be providing oil and gas to our European Allies.
Expression yes. Use of the public air waves to deliberately spread mis-information and incite resentment, not so much. Gaslighting or "flooding the zone with sh*t" is an attack on our freedom. There's no way to "self govern" or hold power accountable without some consensus on what is true. Fox broadcasting is no accident. "No accountability" is exactly what some powerful interests want.
I disagree. Lies are not protected free speech. Misleading the public hurts the voters when they make decisions about whom to vote for. It interferes with the franchise. It is a form of news blackout that happens in Russia.
AGAIN: Blame Moscowmitch for that! President Biden HAS good legislation, but because the right has NOTHING AT ALL and hasn't for OVER 60 YEARS, THEY need Biden to SEEM weak!
Biden rarely even speaks in public so i don't think you can blame him for deflecting.
If Americans wanted a leader who was going to make real change they would have voted for Sanders or Warren. Instead the voted for the Democrat who could barely form a cogent sentence in a debate, had no new and novel policy ideas and had a long history of serving the needs of the donor base over the working class.
America got what it voted for. They got a leader who has kept things the way the donor class wants it with out of the stupid tweets and stupid policy ideas of Trump.
I don't think America is sick of Biden, i think they are just bing told to HATE the leader by the media to distract us from the real culprits which are Big Monopolies that control both parties. No?
I think the DNC deserves a lot of the blame for Biden being in office rather than Warren or Sanders. They do everything they can to promote the old school candidate and make us all think the more progressive politicians can’t win. I think it’s the Dems fatal mistake. If they would have ran with Warren or Sanders as President and a more status quo dem as VP in 2016, we would never have had to deal with Trump winning. They could have attracted all the independents. Instead they shoved Hillary down our throats even though she completely turned off the people who helped Trump win. Dems need to learn how to use a fringe candidate to change the conversation and make people think Dems can accomplish something. That’s how Obama won. I know his progressive policies set off the evangelical right crazy train, but if you put forth a dem candidate that didn’t tow the party line, they could focus the conversation on things those right wingers support like job programs. They could also change the way we debate issues like gun control and steer the conversation toward developing strong state militias outside of federal reach. (Argue that this is the only way to protect citizens from overbearing federal government because state militias could have all the same arsenal that the federal government has whereas an individual with a gun can’t fight an army with missiles and tanks.)
I think you are spot on with regard to what the DNC did to shove a terrible HRC down the throat of voters in 2016 vs letting voters pick the better candidate, Sanders.
What is important to understand is "why" the pushed for the far more risky candidate over the candidate that was more likely to win?
I am fairly certain that the reason comes down to donors. The donor class must have a HRC or Biden to fund the DNC. Thus the DNC feeds the donor class what they want and then they just cross their fingers their chosen candidate squeaks to a victory.
The way to stop that is to stop voting for the Party Candidate in the primaries 100% of the time. Voters have the power to stop this. Stop voting for the party candidate in the primaries 100% of the time and the parties will be forced to shift their strategy
Don't buy into the thread bare argument that progressives can't win. Progressives do just fine in elections. They just dont get the support from the DNC needed to crush the Republicans in the general elections.
the "super delegates' they gave to Clinton fixed the nomination for her...Sanders would have beat T***** to a pulp. Dems are their own worst enemy most of the time....need I say Manchin or Sinema/ and no actions against them. WEAK
Excellent point! Had the DNC put AMERICANS FIRST, President Sanders would have had this mess sorted out year one! He is sharp as a tack AND can take down ANY _rumplican!
No, Sanders would not have had this mess sorted out in year one.
But he would have focused the attention of American voters on issues that voters from the left and right agree on like M4A and $15min wage.
That alone would be far better than Amtrak Joe hiding under his desk letting interns tweet for him vs leading a nation that has too many people really struggling.
I think you’re confusing Biden with Trump. Get off your ass and look up Biden’s accomplishments, tip: not from Fox News. What Americans are sick of is people like you.
Trump's only accomplishment was defeating the GOP party favorite and crushing the powers that were controlling the GOP. He showed that voters can still get their will if they have the courage not to listen to the MSM and vote for who they want not who the party leaders tell you to vote for.
Other than that he was a corrupt incompetent leader with horrible policy ideas and personal embarrassment to this country. His son in law is managing $2B in Saudi money despite never having run a hedge fund before. His fund raising is blatant fraud meant to do nothing more than in rich himself. Oh and he cut taxes to the rich while actively trying to get Americans off of the Obama care with nothing. Yes he is also a racist and a mysoginist who opened the door for more blatant racism and mysoginy in the media and on social media.
Sanders would have crushed Trump in 2020 and today we would be fighting to get M4A passed, debating the value of a $15 national min wage and the son of the sitting President would not be a former board member of a Ukrainian oil company.
Its not Trump supporters that got us in this situation. It is Joe Biden / Hillary Clinton supporting milk toast liberals who are fine with Corporations running the government while people like Nancy Pelosi and Ron DeSantis tell voters that we should vote based on where a candidate stands on saying gay in schools and whether or not they think Trump broke the law on 1/6.
I can see you tow the Democrat line when you bring up Trump. Did i say i was a trump fan? No.( you bring him up to deflect from Bidens failures). Think what you will of Bidens past, he is failing us now, both sides see it. Start responding without mentioning trump, he was done in 2020, or are you one of those people?
Biden was a terrible choice to lead this country. I fought agressively to insure he was not elected in the primaries and i think it is pretty clear that the DNC essentially rigged the election to insure Warren or Sanders did not defeat him.
You claim that Biden is "failing us now, both sides see it". Who are the both sides you are talking about?
Are the Sanders supporting Democrats no different than the HRC / Amtrak Joe supporting Democrats? Are the Trump supporting GOP voters no different than the Mitt Romney / GBush GOP voters?
If you don't understand the massive differences in voters even in the same party then you have no clue who see Biden as failing much less what they see as his failures.
I am crystal clear on the substantive difference between Trump supporting GOP and Romney Supporting GOP. Are you? if so prove it
I am crystal clear on the substantive differences between Sanders supporting Dems and HRC/ Amtrak Joe supporting Dems. Are you? If so prove it?
If you cant even answer these easy questions correctly than don't tell me "Biden is failing us now, and both sides see it" because you don't even know that there are more than 2 sides.
no one deflects like the republicans...everything bad they are doing, and every problem they are causing...they blame on someone else, usually Dems. Wake up.
I don't know why any of that should surprise anyone here. We've discussed it all one way or the other for months. We should all be braced for it - I certainly am. I'm not dancin' a gigue about it, but I'm not the least surprised, particularly in the wake of the 1/6 hearings. Indeed, I greatly admire how news gets released at crucial junctures. BTW: Pay no attention to the usual trolls - bless their tiny hearts! I know they're not buyin' it. They're sellin' bridges!
If the Democrats focused the same amount of attention on Corporate Monopolies and their "market power" and how it is causing inflation and hurting the economy that they are focusing on 1/6 then Americans both Dem and GOP and neither would support the Democratic agenda. They would sail into major wins in November
It would also piss off the donor class. Their focus on 1/6 and not Monopolies effect on inflation is evidence that the current Dem leadership put the donor class ahead of winning elections and ahead of improving the lives of ordinary Americans.
The hearings could be done with a fraction of the fanfare and media attention. The fanfare driving the media attention would be better served by focusing voters attention on problem with Monopoly companies that have the market power to gauge American consumers.
Russia Gate sucked up all of the media attention while Sanders was pushing Medicare for All, something the majority of voters support but that Law Makers refuse to vote on because it will upset the donor class.
The 1/6 hearings are being ignored by the vast majority of Americans other than died in the wool democrats who will vote Democrat anyway. IF we want to improve the country then Law Makers should focus the medias attention toward matters that require POLICY to improve the lives of Americans.
Trump can be convicted and go to prison and it if that gets one day of coverage that would be fine. But not this much coverage. It is an intentional diversion of voters attention away from the policy issues that don't serve the interests of the donor class to something that the donor class really does not care about at all.
Congress doesn't control what the media considers important or wishes to cover. Take that up with the news networks - who gave ol' Tweety all the free campaign advertising he could have possibly wanted in '16!
The media has its largest staffs based in Washington. Congress is the show. What ever the show is the media will cover it.
Pelosi and the Dems have chosen to make the show the 1/6 hearings. That means they have chosen NOT to make the show workers organizing unions at Starbucks and Amazon, Monopolies using "market power" to drive up inflation or the fact that the US pays 2X what other nations pay for health care and we still cant cover millions of americans and our quality is not ranked at the top.
Any of those topics would make for a great show and would get the media huge audience ratings. But the Dems chose not to make those the show because they are putting the needs of the donor class ahead of the needs of ordinary Americans.
“Fanfare”…the hearings for the biggest crime EVER committed on our own capital isn’t creating fanfare. As I said, take your right wing BS and trolling elsewhere. You’re a little to obvious.
Put it this way. Just over half of voters are even watching the hearings and of that more think Trump did not commit a crime than think he actually committed a crime. 40% of voters simply do not care about the "biggest crime ever committed"
So again i ask you, what are Democrats getting out of this?
They are careening toward losing the house and the senate in November and they have put on a grand show that more Americans think they are wrong on than they are right on.
Now, if Congress made as big a show out of the hearings with big oil ceo's and instead of cramming it all in one day had the CEO's there one at a time do you think the Majority of voters would AGREE that big OIL is screwing consumers and that something needs to be done?
This "show" of the 1/6 attacks on the capital is a huge FAIL with voters.
Holding Big Oil responsible for profit gauging during a war would be far more popular with voters and would do far more to get Democrats elected in November than the 1/6 hearings.
That is my point. I am trying to win elections not entertain board people.
Of course, and all the Republicans and DINOs will sign on to everything the Democrats propose as a corrective measure, if only Biden weren't in charge - >just like they've always done.< They'll even open everything they propose for healthy debate, in the name of bipartisanship compromise, should they regain control of Congress, too - >just like they've always done.< . . . . . . . . . . Right ‽
I'm thinkin' the problem ain't necessarily Biden - Or Obama, or Clinton. Hey, the Republicans focused >all< their attention on doin' ol' "Slick Willie," from the day and time he was sworn in, until they finally caught him in a peccadillo having >nothing to do< with the corruption and insinuations of foul play - Whitewater-(gate) - they went after him about daily, until his nerves got bad and he prevaricated about his "trouser trophy!" Of course, we won't discuss an economy >just about like this one< that ol' Slick Willie inherited from the McReagan/Bush era, that he turned around with a $4 T surplus, that W bought the election with promising tax rebates, then dived into a 20 year long military adventure when we were broke. Someone >certainly< prevaricated about WMDs in Iraq!
Prevaricating in personal shame about adultery between consenting adults in a >true< political witch-hunt - as long as the masters of political witch-hunts are crying "witch hunt" - is >in no way< equivalent to insurrection and treason. Perspective, please!
Baffling, is it not, Ms. Long??? As I wrote in one of Professor Reich's posts yesterday: I blame a lack of education. Americans are so dim-witted these days that they cannot see the ACTUAL problem: Moscowmitch blocking ALL of President Biden's progressive legislation so obsolete _rumplicans can steal 2022 away from us Americans.
I know, they fall for the same spin each and every time. 40 years of this bs! And increasingly our population is being undereducated. I swear the movie idiocracy was a prophecy. Ugh despair!
Yes the Rumplicans will absolutely steal the November mid terms and the 2024 elections
Democrats could steal GOP voters by pushing economic policies that Republican voters support like M4A and $15 national min wage. But as long as Democrats refuse to bring these policies to a vote when they have control of the house and senate then it tells GOP voters that they should just vote based on identity politics.
Moscow Mitch will keep screwing Dems as long as the Dems refuse to push the economic policies that Thump and Moscow Mitch oppose.. Elect real progressives and take power, cling to corporate controlled milk toast Dems like Amtrak Joe and you hand power to the Rumplicans. NO?
No it is not a dangerous suggestion any more than it made sense voting for Amtrak Joe or HRC in the Dem primaries when Sanders polled far better than Trump...
That is just a myth that the the corporate controlled leaders of the Dem party push to make voters frightened of voting for who they want.
Ugh I live in California and California went for Bernie. There’s like nothing we can do when Wyoming and other rural states have way more political power than millions and millions of people. We need like 1000 more reps and 2 more states.
whatever republcans are doing wrong...they blame on others...It's their style and their main tactic... and no plans to help the PEOPLE at all, just FEAR and culture crap.
True, and it works with their audience because their audience has learned that the Left is not going to help them economically. So all they care about is identity politics and they only consume media that tells them what the want to hear.
The left is not going to get the right to listen to them on identity politics. But when the left delivers the goods on economic issues (Health Care, Higher Wages, Higher Taxes on the Rich etc... the right listens and votes)
the "left" is the only party that works for the people...big money and bought and sold tratiors like Manchin and Sinema....and the entire repulbican Senate... are paid to make sure the PEOPLE are not heard. Graft is not democracy, niether is lying, denying truth, or cheating to win.. much less selling yourself out to political slavery..
"The Left" has sold out to big business too. Don't fool yourself. It is no accident that with a Dem President, Senate and Congress neither body has used the Bully Pulpit to push for real health care reform, Banking reform (we still have too big to fail), real gun control and climate change initiatives.
Not only have they not even put up bills to be debated, more importantly they have not used their access to the media to push hard for reforms in these areas. Republican voters support liberal policy in these areas and would greatly impact how law makers vote if the Dems took real leadership to get reforms changed. Why?
Because leaders like Biden, Pelosi and Schumer put the donor class first even if the poor and middle class suffer. Clinton was the same and so was Obama. Clinton created the incarceration state, killed labor unions, crushed labor with NAFTA and laid down the ground work for the 2008 financial crises by killing Glass Steigel. Obama's team chose to bail out the banks (share holders, CEO's, Bonuses and all) while essentially leaving homeowners to totally fend for themselves against banks massive legal teams. He also under funded stimulus checks to the poor and unemployed against the advice of his advisors.
Dems wont help. Progressives like Bernie and AOC will help. The Dem party needs to be detroyed and rebuilt by the progressives or the GOP will maintain the power that they have
Joe Manchin and Kristin Cinema are not Republicans.
Biden could be fighting them in the media and forcing them to get with the program like other Presidents have done. He chooses not to while they destroy his agenda.
Republican voters support $15 min wage and M4A. If Pelosi brought them up for a vote she might lose but she would hurt Republicans chances of re-election. She chooses not to even vote on it.
Democrats are looking at a disaster in November and it’s their own fault.
The Republicans have shown they will rule with authoritarian ruthlessness and will screw their own voters to serve the donor class
Dee Long ; The fed is working for the obscenely wealthy who support radical regressive republicans. If the workers (the majority of those affected by these policies of raising interest rates and corps price gouging along with oil and gas gouging), then the suffering voters who are not getting explanations in their news of what s really happening, will blame Biden and the Democrats, because they are 'in power' after all. The media bashes Biden all the time! I ignore polls because they are false 'information' ; nothing more than self fulfilling prophecies!
Actually the Fed keeping interest rates at Zero is the policy that serves the rich... It enables and infact forces banks to create risky investment vehicles to earn "safe returns" for the wealthy. These safe returns, have ended up being far from safe. CDO's were rated AAA and they ended up blowing up and causing Americans to lose their homes, finances and dignity. The Government leaders under Bush and Obama chose to bail out banks and their share holders and their executives and their executive bonuses rather than bailing out homeonwers. That was a political choice. The FED enabled the banks to be bailed out but it was the government that made the choice to bail them out.
Actually it is better for most Americans to have slightly higher interest rates because retired Americans can invest safely instead of having to buy risky investments to get any income.
Nor should you be. Hiding price increases under the veil of inflation can only happen in monopoly markets. If you look at commodities prices they are declining while inflation is going up.
Commodities are in competitive markets. Industries that are generating unusually high margins right now and that have not created brand new products or services to earn those high profits are by definition doing "Rent Seeking" and that can only happen from government intervention.
GOvernment allowed the monopolies not they are reavealing themselves and should be broken up.
Biden should be talking about this every day. The networks should be talking about this every day. IT give sconsumers a real CULPRIT to blame inflation on
Instead Biden is all but silent and so naturally voters are going to blame HIM...
Biden brings this on himself in my views. He wont insult the donor class, even if they are in the wrong and if doing so improves Dems chances of WINNING
I can't shake the sense that entities are negatively manipulating the economy not only for profit, but to make the uninformed believe that the Democrats are incompetent and so we are suffering. They are adding to manipulation of the vote, so what gerrymandering doesn't accomplish, subtle propaganda will.
It’s the same thing they did to Jimmy Carter’s Presidency. When have we ever seen 20% mortgage rates? They slammed Carter and we got Reagan who voted the top marginal income tax rate from 71% to 28% and destroyed the middle class.
Your not alone. I've thought of this too. Corporations do not want to pay taxes. The top percent do not want to pay taxes either. That's for us slugs to do.
Democrats do NOT have the votes in Congress. Manchin & Sinema singlehandedly stopped the BBB. We need to get ANY and all Dems in for a larger majority. Then we can begin removal of those opposed to Democrats attempts to help people. They can have their arms twisted, so to speak. Need a bigger majority. It is imperative!
There seems to be something wrong and your good sense may be right. If you read the article the one truth that does not make sense is extreme oil corp. profits. However, if you look at the gas prices before Biden won the election and after, it is concerning and suspicious. The day after Biden was confirmed the winner of the 2020 presidential elections, gas prices rose. They have continued to rise. Biden and his climate change mitigation agenda is what America and the world need but is a huge problem for oil corporations. The last thing oil corporations want is a president with a climate change mitigation agenda. They are making record profits while ensuring that climate change issues are never acted on.
I'm scared too. What I don't understand is why the Federal
Reserve chooses to raise interest rates as a counter to inflation when they know the impact on the already distressed housing/rental market and the possibility of a recession? Can't they think of anything different to do except what they've always done before? And secondly, would the windfall profits tax and the other measures Mr. Reich describes be enough to bring down inflation without the manipulation of interest rates?
Read the profit reports. Corporations are beholden to stockholders. FOOD and gas. (ever heard of Grimmway Farms...largest carrot producer in the world, based in California) Windfall tax is what corporations were anticipating to put a stop to their pillaging of American finances. Let's DO IT!!!! Raising interest rates sends us closer to a financial cliff. With soaring rents, less incentive to build because of rates...the picture is dire.
Do the Republican candidates running for election in November offer any solutions? No, they don't. They are counting on the anger vote, and little else.
Have you actually listened to any of them to see if they offer solutions? I challenge you to do some research and find out...you might be surprised by the answer.
pray tell how will they lower gas prices and food prices and fix the supply chain. I read Rick Scott's 12 points....I am sickened, if that is a form of surprise.
Thanks for your reply. I will say I don’t trust Rick Scott as far as I can throw him. I haven’t seen anything myself from either side that would fix the mess we are in. If you ask me I think “The People” need to come together and get rid of all the current politicians, incorporate term limits on all public service, and then give direction to those WE put in leadership roles as to how they should behave and manage our affairs as a country.
The reasons behind the increased prices on some items is understandable, considering the war in Ukraine, COVID restraints, etc., however on most items, such as oil and food, it's simply based on greed. Perhaps if we taxed those entities and used the funds to help supplement struggling families, these profit hungry corporations might reverse course. The feds aren't helping by raising interest rates, 15% of homebuyers have backed out of their purchase due to higher mortgage interest rates. If the feds do it again, they are welcoming a recession. As Robert Reich has previously said, "watch your wallet."
Why is this bad news for Dems? They need to push like mad for a windfall profits tax instead of yammering about it for years; if it doesn't pass because of republican recalcitrance, say so. They need to shout about the effect of higher interest rates on housing. Educate the general public. This should be bad news for general welfare bashing republicans....to paraphrase Nancy, they're not able to govern.
unless you change campaign finance rules, we will be stuck in this never ending oligopoly of corporations owning the votes and influence where it matters.
Great piece Mr. Reich. It's a waiting game for the most impatient people on the planet. The key issue, as I see it is: how do we communicate to the "Average American" that the POTUS has no power over so many of the factors that contribute to these economic woes? And if the Democrats try to minimize the pain to the Average American, the "small government Republicans" will start screaming? It seems wise to me for the Democrats to REMIND voters that the GOP is the party of "Small Government" and the callous "invisible hand" cares not for any human collateral damage. Pointed questions need to be DEMANDED of the Republican leadership to hear what they would do to reign in inflation. Hey, I've stopped buying many products and activities right now because of their high costs - inflation hurts. But keeping and increasing the majorities in the House and Senate are MUCH MORE IMPORTANT. The fate of our nation depends on it, actually. Thanks for reading.
As always, thanks for your perspective. I want to add another idea about rising rents: the market concentration of rental properties in the hands of large investors who scooped up real estate during the recession. Many, many units were held off the market in places like Oakland which enabled these corporate landlords to push up rents, and keep raising them beyond rates needed to cover costs.
Big Oil must pay a windfall profits tax. Big Pharma must negotiate drug prices for Medicare. Republicans must be fined for lying constantly to their constituents. It's all Alice in Wonderland in this country.
Let’s see. Republicans support seditionists and blocked the investigation into it. The attempted coup was deadly and included cops being beaten with the US flag! Rs fight off anything to curtail children from being murdered. Democrats are blocked by so-called moderates. Money is at issue there.
How the hell can you lump this into the same pile!?
The Democratic leadership is no less corrupt, albeit in slightly different areas, than the GOP leadership.
The solution is to vote and more specifically to vote against the Dem's choice in every single primary. The more Dems lose in primaries the more attention they will be forced to pay to voters needs over donors needs.
Wasnt a budget deficit also a mjor inflationary pressure? Why do we allow the GOP to get away with acting as if they are so concerened with inflation yet they pass major tax cuts that only add to inflation and do not help anybody but the top economic class? Wouldnt universal healthcare, Universal Pre K, and help offset the 9.1 % inflation we are experiencing?
"What to do? We need a windfall profits tax on Big Oil and food monopolies. Just like Big Oil, food monopolies such as Tysons are taking advantage of their market power and using the cover of inflation to raise their prices. "
Isn't it amazing how easily Republicans discredited Elizebeth Warren? Yes, it will take a wealth tax to balance this listing boat.
Democrats need to do a better job of marketing their ideas. In a world controlled by corporate propaganda, a "windfall profits tax" might be a hard sell. But there's a chance you'd have success if you launch an "affordable housing campaign" All you need to do is get rid of the filibuster, and you can finance it with a tax on the wealthy.
This is why Biden needs to change the management of the Fed. We need an economist whose heart and soul is with the COUNTRY not with Corporate America, We need to write a new tax law, one that enforces full tax payments at a rate not to exceed 40% of gross earnings on everyone in the country earning more than $500,000. We need to ramp up the IRS investigators (the increased tax returns is well worth the extra salaries) BUT the added investigators must go after the wealthy tax dodgers, not just the low hanging fruit of those working for their living. We also need to close tax loop holes that allow the likes of Bezos, Musk, Koch, Hunt, etc to pay ZIP. Capital gains must be treated the same as earned income. In other words we need someone of Robert Reich's knowledge and stature, but not Robert (he deserves his semi retirement).
I find it really frustrating that the Fed thinks raising interest rates is the right way to deal with inflation. The average American is not buying more homes, cars, food, or gas than we need. These are not discretionary purchases. Raising rates simply makes these necessities MORE unaffordable for most people. Yes, raising rates will reduce demand, but inflation will do that on its own and there are less harmful ways to reduce inflation in a more targeted fashion. We could require that single family homes be on the market for 60 days before taking cash offers. We could require mortgage rates for investment property to be a minimum of 3% higher than primary residence rates. We could set a maximum rent rate per square foot based on a multiple of the median income for an area. We could institute emergency rules that kick in when inflation is above a certain percentage. For example, we could set a maximum profit margin on companies deemed integral to the supply chain. Or, we could make the tax rate really high on incomes over a formula amount that is deemed reasonable. Or, we could charge a price gouging penalty that goes into a fund that the government can tap into when corporations need bail outs in future financial crisis. These are all better solutions than causing a food and housing crisis for the poorest Americans.
Why isn't it also BAD NEWS for the do-nothing Republicans who have blocked every piece of legislation that would help working American families??? Also, inflation is affecting the entire world, NOT just the USA, so how exactly are the Democrats or Biden to blame? Any member of the GOP who blames Democrats for inflation should be slapped across the face so hard their teeth rattle - am sick to death of the blame game and NOBODY IS DOING ANYTHING TO SOLVE THE PROBLEM!!
DL
The Republicans need only repeat the word "Inflation" "inflation" 'inflation" and "Biden" "Biden" "Biden" and their voters will automatically blame Biden.
Biden could easily deflect that type of propaganda if he took a strong and consistent stand against the "market power" companies that are causing problems. But doing that would hurt fund raising for the Dems. So he ignores the issue.
The real story is price fixing and price gouging are causing if not aggravating inflation.
House Republicans refused to vote to give the administration authority to go after them.
States have the capacity to bring actions against them. https://www.ncsl.org/research/financial-services-and-commerce/price-gouging-state-statutes.aspx
Meanwhile, commodity prices are down. https://markets.businessinsider.com/commodities
Because commodities prices typically rise when inflation is accelerating, they offer protection from the effects of inflation. Few assets benefit from rising inflation, particularly unexpected inflation, but commodities usually do. That means inflation should decline.
The prices of gas at the pump are falling. Today's report does not show that rates are down.
Ah! Once again you beat me to the punch, Mr. Solomon! This is 130,000% the fault of _rumplicans not allowing President Biden to do something.
Thank you once again Daniel. I never follow the stock market (not exciting enough I guess) so I am forever indebted to people like you who do follow and understand the ramifications.
DS
Good data on commodity prices. Very telling
Thanks but I don't think you give Biden credit for anything.
All he has is moral suasion. He asked OPEC to help but until now thwy have refused. He warned oil company CEOs that he's considering invoking emergency powers to boost U.S. refinery output. He called out the refineries. He called out Exxon.
The Saudis control OPEC, the "market maker" for the price of oil internationally by fixing output. The Saudis own the largest oil refineries in the US and control a number of US oil producers. We are in a crisis caused by the pandemic and the US should take on profiteers here and abroad.
On April 12, 2020, under pressure from the failed former president, the world’s biggest oil-producing nations outside the United States agreed to the largest production cut ever negotiated.
OPEC, Russia and other allied producers slashed production by 9.7 million barrels per day (bpd), or about 10% of global output. Half that volume came from cuts of 2.5 million bpd each by Saudi Arabia and Russia, whose budgets depend on high oil-and-gas revenues.
This was done because the dramatic reduction in demand caused by the pandemic reduced gasoline prices to the point where it was hurting American oil company profits.
To protect those oil companies, the failed former president essentially extorted the Saudis to cut production.
In the meantime American oil companies have achieved record, multi-billion profits. While no president is responsible for the price of gasoline at the pump, largely a function of supply, demand and corporate greed, the disgraced former price fixer went to enormous length to cut supply.
Once demand was restored, we were stuck with Trump's short-sightedness.
The Trump oil deal ended and prices are dropping.
DS
I was not aware that Trump actively negotiated or strong armed the Saudi's and Russians into reducing production. I thought the pandemic did that.
I am always on board with blaming Trump for everything but I was not aware that this too was his fault.
The US President can't easily control global oil prices. That i understand.
But what makes no sense are oil company profits soaring way above the increase in crude oil prices.
That is where the President can do far more than moral suasion. He can have Congress put the CEO's of these companies and their corporate treasurers infront of Congress. Let Katie Porter and Elizabeth warren question these war time profiteers.
If CNN and Faux news did not have the 1/6 hearings to drive viewers seeing Big Oil execs get destroyed by Porter and Warren would not only get better ratings it would put real pressure on the oil companies to act before congress is forced, by voters, to act for them.
That would be much more effective than a strongly worded letter signed by the President. So far his efforts are weak because he does not really want to push Big Oil or any other large industry.
Wrong. We have a separation of powers.
The CEOS have been before Congress. Here is what you've missed. https://www.youtube.com/watch?v=3ZSxZjD0xlw
You owe Biden an apology.
A problem is that Biden and the Democrats aren't succeeding in making any of that clear to GOP voters. They're also not making it clear that the Republicans intend to wipe out Medicare and Social Security. GOP voters don't believe any of it. It's all true, though, so a lot more needs to be done to convince them.
MO
You got that right. The GOP fully intend to wipe out SS and MC and if the reaction of woman to killing Row is any indication then i think Americans are not willing to fight to hold on to any of these entitlements.
I honestly though that woman would be out protesting in the streets until the Supreme court was removed from office.
Instead they screamed and whined until it was out of the news cycle and then just shrugged "what are you going to do"
Yes, i think you are spot on and us progressives are going to let it happen
Moral suasion isn't his only tool. Biden could stop arming the Saudis, especially in their fight against the Houthis, supported by Iran.
...Never mind, that would require Biden to actually act tough
OPEC and the Saudis, Russians, Venezuelans would rather make more profits with the US controlled by the GOP, with or without Trump, but preferably with. Like the GOP, OPEC is willing to let the economy plunge if it will increase the GOP's electoral gains over Biden
Mitch
Yes Biden has many more tools than moral suasion. My point is that he has failed to leverage this tool because (a) he appears to be cognitively impaired, as we saw in the debates (b) he really does not care about anything much more than giving the donor class what they want.
Democrats should have voted for Bernie..
Crazy ideas??:
It's too bad Biden cannot nationalize part of the oil industry, to control prices.
But, speaking of nationalized oil producers and OPEC [ok: OPEC-plus], is there a viable way the US could help Pemex upgrade and reduce pollution in exchange for lower gas prices here and improved relations with Mexico?
Neither you or Mr Reich mention the main causes of inflation, government spending, American Rescue Plan; and the war on Fossil Fuels; both initiated by Biden on day one. I agree there are Global factors. If this is war time like Biden dates, the US could and should be providing oil and gas to our European Allies.
All propaganda based on false premises.
We are providing boucoups LNG.
Anything to NOT blame the real culprits the amazingly greedy Corporate America
your just another fossil fool, and FoxnotNews listener. You don't know the truth when you hear it.
We need to shut down dangerous propaganda fomented by right wing media. Start with Faux News
I say Tucker _arleson should be ARRESTED for his deadly propaganda!
If we even attempted to shut down the propaganda, we would be branded as Communist. Our constitution gives people the right of expression.
Expression yes. Use of the public air waves to deliberately spread mis-information and incite resentment, not so much. Gaslighting or "flooding the zone with sh*t" is an attack on our freedom. There's no way to "self govern" or hold power accountable without some consensus on what is true. Fox broadcasting is no accident. "No accountability" is exactly what some powerful interests want.
I disagree. Lies are not protected free speech. Misleading the public hurts the voters when they make decisions about whom to vote for. It interferes with the franchise. It is a form of news blackout that happens in Russia.
That's all Biden does is deflect. And Americans are sick of it. He can't deliver on anything.
AGAIN: Blame Moscowmitch for that! President Biden HAS good legislation, but because the right has NOTHING AT ALL and hasn't for OVER 60 YEARS, THEY need Biden to SEEM weak!
BS
Biden rarely even speaks in public so i don't think you can blame him for deflecting.
If Americans wanted a leader who was going to make real change they would have voted for Sanders or Warren. Instead the voted for the Democrat who could barely form a cogent sentence in a debate, had no new and novel policy ideas and had a long history of serving the needs of the donor base over the working class.
America got what it voted for. They got a leader who has kept things the way the donor class wants it with out of the stupid tweets and stupid policy ideas of Trump.
I don't think America is sick of Biden, i think they are just bing told to HATE the leader by the media to distract us from the real culprits which are Big Monopolies that control both parties. No?
I think the DNC deserves a lot of the blame for Biden being in office rather than Warren or Sanders. They do everything they can to promote the old school candidate and make us all think the more progressive politicians can’t win. I think it’s the Dems fatal mistake. If they would have ran with Warren or Sanders as President and a more status quo dem as VP in 2016, we would never have had to deal with Trump winning. They could have attracted all the independents. Instead they shoved Hillary down our throats even though she completely turned off the people who helped Trump win. Dems need to learn how to use a fringe candidate to change the conversation and make people think Dems can accomplish something. That’s how Obama won. I know his progressive policies set off the evangelical right crazy train, but if you put forth a dem candidate that didn’t tow the party line, they could focus the conversation on things those right wingers support like job programs. They could also change the way we debate issues like gun control and steer the conversation toward developing strong state militias outside of federal reach. (Argue that this is the only way to protect citizens from overbearing federal government because state militias could have all the same arsenal that the federal government has whereas an individual with a gun can’t fight an army with missiles and tanks.)
AE
I think you are spot on with regard to what the DNC did to shove a terrible HRC down the throat of voters in 2016 vs letting voters pick the better candidate, Sanders.
What is important to understand is "why" the pushed for the far more risky candidate over the candidate that was more likely to win?
I am fairly certain that the reason comes down to donors. The donor class must have a HRC or Biden to fund the DNC. Thus the DNC feeds the donor class what they want and then they just cross their fingers their chosen candidate squeaks to a victory.
The way to stop that is to stop voting for the Party Candidate in the primaries 100% of the time. Voters have the power to stop this. Stop voting for the party candidate in the primaries 100% of the time and the parties will be forced to shift their strategy
Don't buy into the thread bare argument that progressives can't win. Progressives do just fine in elections. They just dont get the support from the DNC needed to crush the Republicans in the general elections.
the "super delegates' they gave to Clinton fixed the nomination for her...Sanders would have beat T***** to a pulp. Dems are their own worst enemy most of the time....need I say Manchin or Sinema/ and no actions against them. WEAK
TS
Spot on
Excellent point! Had the DNC put AMERICANS FIRST, President Sanders would have had this mess sorted out year one! He is sharp as a tack AND can take down ANY _rumplican!
YES.
DH
No, Sanders would not have had this mess sorted out in year one.
But he would have focused the attention of American voters on issues that voters from the left and right agree on like M4A and $15min wage.
That alone would be far better than Amtrak Joe hiding under his desk letting interns tweet for him vs leading a nation that has too many people really struggling.
I think you’re confusing Biden with Trump. Get off your ass and look up Biden’s accomplishments, tip: not from Fox News. What Americans are sick of is people like you.
Name any accomplishment you think Trump made.
Enough of this trolling.
SR
Trump's only accomplishment was defeating the GOP party favorite and crushing the powers that were controlling the GOP. He showed that voters can still get their will if they have the courage not to listen to the MSM and vote for who they want not who the party leaders tell you to vote for.
Other than that he was a corrupt incompetent leader with horrible policy ideas and personal embarrassment to this country. His son in law is managing $2B in Saudi money despite never having run a hedge fund before. His fund raising is blatant fraud meant to do nothing more than in rich himself. Oh and he cut taxes to the rich while actively trying to get Americans off of the Obama care with nothing. Yes he is also a racist and a mysoginist who opened the door for more blatant racism and mysoginy in the media and on social media.
Sanders would have crushed Trump in 2020 and today we would be fighting to get M4A passed, debating the value of a $15 national min wage and the son of the sitting President would not be a former board member of a Ukrainian oil company.
Its not Trump supporters that got us in this situation. It is Joe Biden / Hillary Clinton supporting milk toast liberals who are fine with Corporations running the government while people like Nancy Pelosi and Ron DeSantis tell voters that we should vote based on where a candidate stands on saying gay in schools and whether or not they think Trump broke the law on 1/6.
I can see you tow the Democrat line when you bring up Trump. Did i say i was a trump fan? No.( you bring him up to deflect from Bidens failures). Think what you will of Bidens past, he is failing us now, both sides see it. Start responding without mentioning trump, he was done in 2020, or are you one of those people?
BS
Biden was a terrible choice to lead this country. I fought agressively to insure he was not elected in the primaries and i think it is pretty clear that the DNC essentially rigged the election to insure Warren or Sanders did not defeat him.
You claim that Biden is "failing us now, both sides see it". Who are the both sides you are talking about?
Are the Sanders supporting Democrats no different than the HRC / Amtrak Joe supporting Democrats? Are the Trump supporting GOP voters no different than the Mitt Romney / GBush GOP voters?
If you don't understand the massive differences in voters even in the same party then you have no clue who see Biden as failing much less what they see as his failures.
I am crystal clear on the substantive difference between Trump supporting GOP and Romney Supporting GOP. Are you? if so prove it
I am crystal clear on the substantive differences between Sanders supporting Dems and HRC/ Amtrak Joe supporting Dems. Are you? If so prove it?
If you cant even answer these easy questions correctly than don't tell me "Biden is failing us now, and both sides see it" because you don't even know that there are more than 2 sides.
no one deflects like the republicans...everything bad they are doing, and every problem they are causing...they blame on someone else, usually Dems. Wake up.
I don't know why any of that should surprise anyone here. We've discussed it all one way or the other for months. We should all be braced for it - I certainly am. I'm not dancin' a gigue about it, but I'm not the least surprised, particularly in the wake of the 1/6 hearings. Indeed, I greatly admire how news gets released at crucial junctures. BTW: Pay no attention to the usual trolls - bless their tiny hearts! I know they're not buyin' it. They're sellin' bridges!
DZK
If the Democrats focused the same amount of attention on Corporate Monopolies and their "market power" and how it is causing inflation and hurting the economy that they are focusing on 1/6 then Americans both Dem and GOP and neither would support the Democratic agenda. They would sail into major wins in November
It would also piss off the donor class. Their focus on 1/6 and not Monopolies effect on inflation is evidence that the current Dem leadership put the donor class ahead of winning elections and ahead of improving the lives of ordinary Americans.
Stop voting for tools like Biden.
I find Jan 6 and getting fascists proper punishment to be of very high priority in going forward.
The hearings could be done with a fraction of the fanfare and media attention. The fanfare driving the media attention would be better served by focusing voters attention on problem with Monopoly companies that have the market power to gauge American consumers.
Russia Gate sucked up all of the media attention while Sanders was pushing Medicare for All, something the majority of voters support but that Law Makers refuse to vote on because it will upset the donor class.
The 1/6 hearings are being ignored by the vast majority of Americans other than died in the wool democrats who will vote Democrat anyway. IF we want to improve the country then Law Makers should focus the medias attention toward matters that require POLICY to improve the lives of Americans.
Trump can be convicted and go to prison and it if that gets one day of coverage that would be fine. But not this much coverage. It is an intentional diversion of voters attention away from the policy issues that don't serve the interests of the donor class to something that the donor class really does not care about at all.
Congress doesn't control what the media considers important or wishes to cover. Take that up with the news networks - who gave ol' Tweety all the free campaign advertising he could have possibly wanted in '16!
DZK
The media has its largest staffs based in Washington. Congress is the show. What ever the show is the media will cover it.
Pelosi and the Dems have chosen to make the show the 1/6 hearings. That means they have chosen NOT to make the show workers organizing unions at Starbucks and Amazon, Monopolies using "market power" to drive up inflation or the fact that the US pays 2X what other nations pay for health care and we still cant cover millions of americans and our quality is not ranked at the top.
Any of those topics would make for a great show and would get the media huge audience ratings. But the Dems chose not to make those the show because they are putting the needs of the donor class ahead of the needs of ordinary Americans.
“Fanfare”…the hearings for the biggest crime EVER committed on our own capital isn’t creating fanfare. As I said, take your right wing BS and trolling elsewhere. You’re a little to obvious.
SR
Put it this way. Just over half of voters are even watching the hearings and of that more think Trump did not commit a crime than think he actually committed a crime. 40% of voters simply do not care about the "biggest crime ever committed"
So again i ask you, what are Democrats getting out of this?
They are careening toward losing the house and the senate in November and they have put on a grand show that more Americans think they are wrong on than they are right on.
Now, if Congress made as big a show out of the hearings with big oil ceo's and instead of cramming it all in one day had the CEO's there one at a time do you think the Majority of voters would AGREE that big OIL is screwing consumers and that something needs to be done?
This "show" of the 1/6 attacks on the capital is a huge FAIL with voters.
Holding Big Oil responsible for profit gauging during a war would be far more popular with voters and would do far more to get Democrats elected in November than the 1/6 hearings.
That is my point. I am trying to win elections not entertain board people.
Of course, and all the Republicans and DINOs will sign on to everything the Democrats propose as a corrective measure, if only Biden weren't in charge - >just like they've always done.< They'll even open everything they propose for healthy debate, in the name of bipartisanship compromise, should they regain control of Congress, too - >just like they've always done.< . . . . . . . . . . Right ‽
I'm thinkin' the problem ain't necessarily Biden - Or Obama, or Clinton. Hey, the Republicans focused >all< their attention on doin' ol' "Slick Willie," from the day and time he was sworn in, until they finally caught him in a peccadillo having >nothing to do< with the corruption and insinuations of foul play - Whitewater-(gate) - they went after him about daily, until his nerves got bad and he prevaricated about his "trouser trophy!" Of course, we won't discuss an economy >just about like this one< that ol' Slick Willie inherited from the McReagan/Bush era, that he turned around with a $4 T surplus, that W bought the election with promising tax rebates, then dived into a 20 year long military adventure when we were broke. Someone >certainly< prevaricated about WMDs in Iraq!
Prevaricating in personal shame about adultery between consenting adults in a >true< political witch-hunt - as long as the masters of political witch-hunts are crying "witch hunt" - is >in no way< equivalent to insurrection and treason. Perspective, please!
Baffling, is it not, Ms. Long??? As I wrote in one of Professor Reich's posts yesterday: I blame a lack of education. Americans are so dim-witted these days that they cannot see the ACTUAL problem: Moscowmitch blocking ALL of President Biden's progressive legislation so obsolete _rumplicans can steal 2022 away from us Americans.
I know, they fall for the same spin each and every time. 40 years of this bs! And increasingly our population is being undereducated. I swear the movie idiocracy was a prophecy. Ugh despair!
DL
Yes the Rumplicans will absolutely steal the November mid terms and the 2024 elections
Democrats could steal GOP voters by pushing economic policies that Republican voters support like M4A and $15 national min wage. But as long as Democrats refuse to bring these policies to a vote when they have control of the house and senate then it tells GOP voters that they should just vote based on identity politics.
Moscow Mitch will keep screwing Dems as long as the Dems refuse to push the economic policies that Thump and Moscow Mitch oppose.. Elect real progressives and take power, cling to corporate controlled milk toast Dems like Amtrak Joe and you hand power to the Rumplicans. NO?
No shit! I’m so infuriated about this. It’s always lose lose situation for Dems. This could not be more frustrating argh!!! Wtf
KB
Don't vote for the Dem parties chosen candidate. Vote for the outsider in every primary. That is the only way to get them to pay attention to voters.
No. Good way to split the vote. Dangerous suggestion.
SR
No it is not a dangerous suggestion any more than it made sense voting for Amtrak Joe or HRC in the Dem primaries when Sanders polled far better than Trump...
That is just a myth that the the corporate controlled leaders of the Dem party push to make voters frightened of voting for who they want.
Ugh I live in California and California went for Bernie. There’s like nothing we can do when Wyoming and other rural states have way more political power than millions and millions of people. We need like 1000 more reps and 2 more states.
whatever republcans are doing wrong...they blame on others...It's their style and their main tactic... and no plans to help the PEOPLE at all, just FEAR and culture crap.
RS
True, and it works with their audience because their audience has learned that the Left is not going to help them economically. So all they care about is identity politics and they only consume media that tells them what the want to hear.
The left is not going to get the right to listen to them on identity politics. But when the left delivers the goods on economic issues (Health Care, Higher Wages, Higher Taxes on the Rich etc... the right listens and votes)
Its a choice
the "left" is the only party that works for the people...big money and bought and sold tratiors like Manchin and Sinema....and the entire repulbican Senate... are paid to make sure the PEOPLE are not heard. Graft is not democracy, niether is lying, denying truth, or cheating to win.. much less selling yourself out to political slavery..
"The Left" has sold out to big business too. Don't fool yourself. It is no accident that with a Dem President, Senate and Congress neither body has used the Bully Pulpit to push for real health care reform, Banking reform (we still have too big to fail), real gun control and climate change initiatives.
Not only have they not even put up bills to be debated, more importantly they have not used their access to the media to push hard for reforms in these areas. Republican voters support liberal policy in these areas and would greatly impact how law makers vote if the Dems took real leadership to get reforms changed. Why?
Because leaders like Biden, Pelosi and Schumer put the donor class first even if the poor and middle class suffer. Clinton was the same and so was Obama. Clinton created the incarceration state, killed labor unions, crushed labor with NAFTA and laid down the ground work for the 2008 financial crises by killing Glass Steigel. Obama's team chose to bail out the banks (share holders, CEO's, Bonuses and all) while essentially leaving homeowners to totally fend for themselves against banks massive legal teams. He also under funded stimulus checks to the poor and unemployed against the advice of his advisors.
Dems wont help. Progressives like Bernie and AOC will help. The Dem party needs to be detroyed and rebuilt by the progressives or the GOP will maintain the power that they have
DL
Joe Manchin and Kristin Cinema are not Republicans.
Biden could be fighting them in the media and forcing them to get with the program like other Presidents have done. He chooses not to while they destroy his agenda.
Republican voters support $15 min wage and M4A. If Pelosi brought them up for a vote she might lose but she would hurt Republicans chances of re-election. She chooses not to even vote on it.
Democrats are looking at a disaster in November and it’s their own fault.
The Republicans have shown they will rule with authoritarian ruthlessness and will screw their own voters to serve the donor class
Maybe we should push Biden to levy that windfall profit tax that he proposed more than once?
Dee Long ; The fed is working for the obscenely wealthy who support radical regressive republicans. If the workers (the majority of those affected by these policies of raising interest rates and corps price gouging along with oil and gas gouging), then the suffering voters who are not getting explanations in their news of what s really happening, will blame Biden and the Democrats, because they are 'in power' after all. The media bashes Biden all the time! I ignore polls because they are false 'information' ; nothing more than self fulfilling prophecies!
LB
Actually the Fed keeping interest rates at Zero is the policy that serves the rich... It enables and infact forces banks to create risky investment vehicles to earn "safe returns" for the wealthy. These safe returns, have ended up being far from safe. CDO's were rated AAA and they ended up blowing up and causing Americans to lose their homes, finances and dignity. The Government leaders under Bush and Obama chose to bail out banks and their share holders and their executives and their executive bonuses rather than bailing out homeonwers. That was a political choice. The FED enabled the banks to be bailed out but it was the government that made the choice to bail them out.
Actually it is better for most Americans to have slightly higher interest rates because retired Americans can invest safely instead of having to buy risky investments to get any income.
Piketty ; I'm not convinced that the ability to hide price increases under the veil of inflation is harmless.
LB
Nor should you be. Hiding price increases under the veil of inflation can only happen in monopoly markets. If you look at commodities prices they are declining while inflation is going up.
Commodities are in competitive markets. Industries that are generating unusually high margins right now and that have not created brand new products or services to earn those high profits are by definition doing "Rent Seeking" and that can only happen from government intervention.
GOvernment allowed the monopolies not they are reavealing themselves and should be broken up.
Biden should be talking about this every day. The networks should be talking about this every day. IT give sconsumers a real CULPRIT to blame inflation on
Instead Biden is all but silent and so naturally voters are going to blame HIM...
Biden brings this on himself in my views. He wont insult the donor class, even if they are in the wrong and if doing so improves Dems chances of WINNING
I can't shake the sense that entities are negatively manipulating the economy not only for profit, but to make the uninformed believe that the Democrats are incompetent and so we are suffering. They are adding to manipulation of the vote, so what gerrymandering doesn't accomplish, subtle propaganda will.
It’s the same thing they did to Jimmy Carter’s Presidency. When have we ever seen 20% mortgage rates? They slammed Carter and we got Reagan who voted the top marginal income tax rate from 71% to 28% and destroyed the middle class.
Your not alone. I've thought of this too. Corporations do not want to pay taxes. The top percent do not want to pay taxes either. That's for us slugs to do.
Well, if Democrats let them get away with it, aren't they (the Dems) incompetent? Not to mention complicit?
Imo that's the crux -- nothing changes because at the heart of it Dems don't want to rile Big $$ anymore than Repubs do.
Democrats do NOT have the votes in Congress. Manchin & Sinema singlehandedly stopped the BBB. We need to get ANY and all Dems in for a larger majority. Then we can begin removal of those opposed to Democrats attempts to help people. They can have their arms twisted, so to speak. Need a bigger majority. It is imperative!
There seems to be something wrong and your good sense may be right. If you read the article the one truth that does not make sense is extreme oil corp. profits. However, if you look at the gas prices before Biden won the election and after, it is concerning and suspicious. The day after Biden was confirmed the winner of the 2020 presidential elections, gas prices rose. They have continued to rise. Biden and his climate change mitigation agenda is what America and the world need but is a huge problem for oil corporations. The last thing oil corporations want is a president with a climate change mitigation agenda. They are making record profits while ensuring that climate change issues are never acted on.
But Hooooo would do a thing like that?
I want to focus on housing costs.
I want to focus on housing costs for those who do not own there own homes.
I want to focus on housing costs for those who do not have there rent and other housing costs capped at 30% of income.
For many of us, the costs have gone up over 25%
I can eat less, or cheaper. I can travel less. I can buy fewer consumer goods.
Unless, as too many of my friends have, I chose to live under a bridge, I cannot avoid spending money on housing. I am scared.
I'm scared too. What I don't understand is why the Federal
Reserve chooses to raise interest rates as a counter to inflation when they know the impact on the already distressed housing/rental market and the possibility of a recession? Can't they think of anything different to do except what they've always done before? And secondly, would the windfall profits tax and the other measures Mr. Reich describes be enough to bring down inflation without the manipulation of interest rates?
Yes there is a simple economic solution, cut federal spending, reduce the size of government.
Read the profit reports. Corporations are beholden to stockholders. FOOD and gas. (ever heard of Grimmway Farms...largest carrot producer in the world, based in California) Windfall tax is what corporations were anticipating to put a stop to their pillaging of American finances. Let's DO IT!!!! Raising interest rates sends us closer to a financial cliff. With soaring rents, less incentive to build because of rates...the picture is dire.
Do the Republican candidates running for election in November offer any solutions? No, they don't. They are counting on the anger vote, and little else.
Have you actually listened to any of them to see if they offer solutions? I challenge you to do some research and find out...you might be surprised by the answer.
pray tell how will they lower gas prices and food prices and fix the supply chain. I read Rick Scott's 12 points....I am sickened, if that is a form of surprise.
Thanks for your reply. I will say I don’t trust Rick Scott as far as I can throw him. I haven’t seen anything myself from either side that would fix the mess we are in. If you ask me I think “The People” need to come together and get rid of all the current politicians, incorporate term limits on all public service, and then give direction to those WE put in leadership roles as to how they should behave and manage our affairs as a country.
The reasons behind the increased prices on some items is understandable, considering the war in Ukraine, COVID restraints, etc., however on most items, such as oil and food, it's simply based on greed. Perhaps if we taxed those entities and used the funds to help supplement struggling families, these profit hungry corporations might reverse course. The feds aren't helping by raising interest rates, 15% of homebuyers have backed out of their purchase due to higher mortgage interest rates. If the feds do it again, they are welcoming a recession. As Robert Reich has previously said, "watch your wallet."
Why is this bad news for Dems? They need to push like mad for a windfall profits tax instead of yammering about it for years; if it doesn't pass because of republican recalcitrance, say so. They need to shout about the effect of higher interest rates on housing. Educate the general public. This should be bad news for general welfare bashing republicans....to paraphrase Nancy, they're not able to govern.
Windfall tax is desperately needed, especially in light of all the economy has been through with Covid etc.
unless you change campaign finance rules, we will be stuck in this never ending oligopoly of corporations owning the votes and influence where it matters.
PS... I might be wrong but unsure....
Great piece Mr. Reich. It's a waiting game for the most impatient people on the planet. The key issue, as I see it is: how do we communicate to the "Average American" that the POTUS has no power over so many of the factors that contribute to these economic woes? And if the Democrats try to minimize the pain to the Average American, the "small government Republicans" will start screaming? It seems wise to me for the Democrats to REMIND voters that the GOP is the party of "Small Government" and the callous "invisible hand" cares not for any human collateral damage. Pointed questions need to be DEMANDED of the Republican leadership to hear what they would do to reign in inflation. Hey, I've stopped buying many products and activities right now because of their high costs - inflation hurts. But keeping and increasing the majorities in the House and Senate are MUCH MORE IMPORTANT. The fate of our nation depends on it, actually. Thanks for reading.
HI Robert,
As always, thanks for your perspective. I want to add another idea about rising rents: the market concentration of rental properties in the hands of large investors who scooped up real estate during the recession. Many, many units were held off the market in places like Oakland which enabled these corporate landlords to push up rents, and keep raising them beyond rates needed to cover costs.
Big Oil must pay a windfall profits tax. Big Pharma must negotiate drug prices for Medicare. Republicans must be fined for lying constantly to their constituents. It's all Alice in Wonderland in this country.
DS
Can you identify the Democrats that are arguing for a windfall profits tax on big oil or on Medicare negotiating drug prices.
I think Dem leadership is as useless as the Republicans. No?
Let’s see. Republicans support seditionists and blocked the investigation into it. The attempted coup was deadly and included cops being beaten with the US flag! Rs fight off anything to curtail children from being murdered. Democrats are blocked by so-called moderates. Money is at issue there.
How the hell can you lump this into the same pile!?
I have to agree with you, too. The Dems are weak in their responses to outrages. The Reprehensibles are the authors of those outrages.
I have to agree. My daughter complains about the feckless Dem response to so many things, and I'm afraid she's right.
DS
The Democratic leadership is no less corrupt, albeit in slightly different areas, than the GOP leadership.
The solution is to vote and more specifically to vote against the Dem's choice in every single primary. The more Dems lose in primaries the more attention they will be forced to pay to voters needs over donors needs.
If you're not a Russian bot, you're a useful idiot.
Divide us and conquer us.
Wasnt a budget deficit also a mjor inflationary pressure? Why do we allow the GOP to get away with acting as if they are so concerened with inflation yet they pass major tax cuts that only add to inflation and do not help anybody but the top economic class? Wouldnt universal healthcare, Universal Pre K, and help offset the 9.1 % inflation we are experiencing?
"What to do? We need a windfall profits tax on Big Oil and food monopolies. Just like Big Oil, food monopolies such as Tysons are taking advantage of their market power and using the cover of inflation to raise their prices. "
Isn't it amazing how easily Republicans discredited Elizebeth Warren? Yes, it will take a wealth tax to balance this listing boat.
Democrats need to do a better job of marketing their ideas. In a world controlled by corporate propaganda, a "windfall profits tax" might be a hard sell. But there's a chance you'd have success if you launch an "affordable housing campaign" All you need to do is get rid of the filibuster, and you can finance it with a tax on the wealthy.
This is why Biden needs to change the management of the Fed. We need an economist whose heart and soul is with the COUNTRY not with Corporate America, We need to write a new tax law, one that enforces full tax payments at a rate not to exceed 40% of gross earnings on everyone in the country earning more than $500,000. We need to ramp up the IRS investigators (the increased tax returns is well worth the extra salaries) BUT the added investigators must go after the wealthy tax dodgers, not just the low hanging fruit of those working for their living. We also need to close tax loop holes that allow the likes of Bezos, Musk, Koch, Hunt, etc to pay ZIP. Capital gains must be treated the same as earned income. In other words we need someone of Robert Reich's knowledge and stature, but not Robert (he deserves his semi retirement).
I find it really frustrating that the Fed thinks raising interest rates is the right way to deal with inflation. The average American is not buying more homes, cars, food, or gas than we need. These are not discretionary purchases. Raising rates simply makes these necessities MORE unaffordable for most people. Yes, raising rates will reduce demand, but inflation will do that on its own and there are less harmful ways to reduce inflation in a more targeted fashion. We could require that single family homes be on the market for 60 days before taking cash offers. We could require mortgage rates for investment property to be a minimum of 3% higher than primary residence rates. We could set a maximum rent rate per square foot based on a multiple of the median income for an area. We could institute emergency rules that kick in when inflation is above a certain percentage. For example, we could set a maximum profit margin on companies deemed integral to the supply chain. Or, we could make the tax rate really high on incomes over a formula amount that is deemed reasonable. Or, we could charge a price gouging penalty that goes into a fund that the government can tap into when corporations need bail outs in future financial crisis. These are all better solutions than causing a food and housing crisis for the poorest Americans.