131 Comments
User's avatar
Johan's avatar

Professor Reich nails the domestic policy failures here, but there’s a crucial geopolitical dimension most people are missing.

I come from a foreign service background and consult for foreign policy organizations…the economic incoherence you’re describing isn’t a bug, it’s strategic. Unpredictable tariffs, attacks on the Fed’s independence, and financial deregulation aren’t just bad domestic policy. They’re tools for destabilizing institutional frameworks that constrain executive power.

When Trump threatens Fed independence, he’s not just trying to lower interest rates, he’s testing how far he can push against institutional autonomy. Same pattern with DOJ, same with regulatory agencies. The goal is centralized, unaccountable power that can be weaponized both domestically and in international economic leverage plays.

We also need to recognize that the opposition to these policies isn’t just ideological disagreement, it’s a deliberate strategy to concentrate power while keeping the public distracted and divided.

The question isn’t whether they understand economics. It’s whether enough Americans will recognize the power grab before these institutions are too weakened to push back.​​​​​​​​​​​​​​​​

—Johan

Former Foreign Service Officer

Victor's avatar
5hEdited

Well said, Johan, but an important rationale for the tariffs is the long-standing libertarian goal of eliminating the income tax and replacing it with sales taxes . It is important to tell voters that Trump's loyalty is to the billionaire class he was born into.

Apache's avatar

Hello Victor... Just go to Mar-a-Lago... You'll see Who DJT is Close Too...

gerald f dobbertin's avatar

Very good point Victor. You could not be more correct.

Christy Shaver's avatar

What stood out to me in Dr. Reich’s piece is how concentrated economic power makes both prices and institutions fragile. In that light, the pattern you’re naming, Johan, feels especially dangerous.

Timothy Cooper's avatar

As I always say, follow the logic - Karen Cooper

Lilla Russell's avatar

Excellent points Johan. Thanks.

gerald f dobbertin's avatar

Wow Johan. Well said. And so true. We have two institutional loci of power: Economic....political.

In our private enterprise form of capitalism, immense wealth concentrated in the hands of a small minority of us has created a huge, almost untouchable locus of power. The political institution can resist this power. Indeed, it is the only thing which can. And this political locus of power, in the form of a democratic type of government can function in such a way as to help ordinary citizens caught up in the system of unrestrained capitalism. That is the reason the Republican zealots cruelly want to shrink, stop, hand tie the government. That is what is behind the heritage Foundation's 2025. That is what motivates Russell Vought to get up each morning and work every day, as he destroys our government.

Ian's avatar

Another world is possible because another world is affordable. Professor Reich, please put together some type of video that reveals the obscene profits taken by firms over the last several years. We need to first arm people with the indisputable facts about how higher wages are clearly possible, companies would just rather siphon the money up to the top so executives can get a fifth house.

ISOequanimity's avatar

19 oligarchs control more than 3 trillion dollars in this country. If they chose, they could singlehandedly end world hunger, malnutrition, many diseases, substandard housing, poverty, and the digital divide. https://inequality.org/article/oligarchy-has-arrived-in-america-will-we-confront-it/. https://www.investopedia.com/what-would-it-would-cost-to-end-global-poverty-11874772

Michael Hutchinson's avatar

They won't choose. It needs to be enforced from above.

Reich's 10 points are the way the Scandinavian societies are set up.

Michael Hutchinson's avatar

And it won't be easy. Remember, the oligarchs think it's their money.

JudithMontreal's avatar

Many of the uber-rich, oligarchs in particular, obviously suffer from an addictive condition: greed necessitating the accumulation of wealth. Why not give back to society, we ask, when they will never be able to spend it all?

They are hoarders. When the trillions they're holding onto fail to make their way back into circulation, no wonder the economy suffers. Where's this money going? Stashed in offshore bank accounts for hoarders and robber barons. where these obsessed "McScrooges" prefer counting it, watching it grow exponentially larger and larger and larger while many in the world grow hungrier and hungrier and hungrier. Sick, isn't it.

JudithMontreal's avatar

P.S There is growing inuendo concerning Peter Thiel./Alex Karp (Palentir), Musk, Curtis Yarvin and others who dwell in that drug-hazed cult of billionaire fascist, white supremacists; That they're spending their billions to purchase large swathes of land in the US and around the globe for their new world "dystopian" order of city states, where the rich and privileged dominate and we, the lowly 'yoked' peons must then serve them (or we're disposed of).

David Dilling's avatar

Yes. We need to increase taxes on the uber wealthy.

Timothy Cooper's avatar

My constant thought. This country has increasingly become a very greedy, selfish, cruel place, and itʻs accelerating under this regime. I donʻt think itʻs just the oligarchs, itʻs a segment of the population. Itʻs the self-absorbed who loudly assert their rights at any cost to the detriment of the whole of the country - Karen Cooper

progwoman's avatar

That's why they call it a K-shaped economy. Above those who stuggle with everyday living, which used to be much easier, is a class of people who can't feel the pain because their wealth and income continue to provide them with a cushion.

Johan's avatar

Where’s Robinhood when you need him?!

Michael Hutchinson's avatar

Apparently hiding behind a tree in Sherwood Forest.

chris lemon's avatar

Its going to be damned difficult "arming" people with this knowledge when the entire media environment is owned and controlled by oligarchs who will quite literally feed their mothers to dogs if that's what it takes to keep "the people" from discovering how rigged the system is. As an aside, executives aren't just getting enough for a fifth house, they’re getting enough to buy entire small countries, or the US congress and Senate.

gerald f dobbertin's avatar

Ian. That is the nature of our unrestrained capitalist system.

Timothy Cooper's avatar

Donʻt forget the stockholders ....

- Karen Cooper

Jim Carmichael's avatar

I’m saving today’s column as a go to list! I’m fully on board with all of these, and would only add End Citizens United at the top of the list.

Maureen Cohen's avatar

We so desperately need the Dems to go all out on an agenda like this. We can’t just assume we will make gains in November.

As of now we are headed for a police state to cover up the Epstein files and to enable meddling with election results.

And is anyone questioning why Trump is planning on protecting protestors in Iran, but justifying murder here?

Anon's avatar

Maureen - Some of my thoughts:

On the plus side two democrats just won special elections in Virginia. T expressed how little he actually cares about workers when he mouthed the f word and flipped off a worker at a Detroit auto plant who yelled “pedophile protector” at him. The truth hurts I guess. I could be way off in my thoughts about the protests in Iran but my thought is that he is encouraging the protests there hoping that enough people would risk prison or death and topple the government. Then he could add Acting President of Iran to his Wikipedia page. As far as us protesting - apparently it deeply offends him and his fragile ego. He even directed the DOJ to investigate the widow of Good and luckily the attorneys who know better resigned. It’s also assbackwards to have the Civil Rights Division decide not to investigate the shooting without even trying to start an investigation to see if it needs investigating (which it does).

We all have discussions and thoughts about what is happening to us daily but I do enjoy learning from others here who like to voice their thoughts and opinions. We are diverse for a reason.

David Kleinberg-Levin's avatar

This list of 10 ways to address the affordability crisis is right. But resistance from big corporate business will be intense. So we the people need to elect representatives who will lead the nation in these desperately needed changes in our political economy.

Bill H (AZ)'s avatar

Robert:

There is nothing in your commentary to which I would disagree. Reversing the last 20 years of rent taking by corporations and a few at the top of the pyramid of income would benefit the economic well-being for millions with healthcare, access to improved education, job training, etc.

Regards . . .

Anon's avatar

Bill - It would be nice if they inverted the triangle of wealth the same way that rfk jr just did to the food pyramid. ;)

Bill H (AZ)'s avatar

Yes. we can all dream, heh?

progwoman's avatar

And you might try avoiding beef, not only for your health as protest against the cattle farmers.

TOM PAIN's avatar

The sad thing is that all these ideas were well known (among those who wanted to know about them) decades ago, and Robert Reich still has to keep trying to get them jammed into the airheads of most American politicians. Dr. Robert Sisyphus Reich!

VIENNA, AUSTRIA, recognized a cost of housing problem 100 years ago and began building social housing, good quality housing owned, managed, and price controlled by the government, now about 50% of all housing in Vienna is social housing, now social housing is used to keep housing more affordable in every European country I can think of, and it's not slummy "projects" as were once done (as cheaply as possible) in America,

Google SOCIAL HOUSING EUROPE, the architecture of most social housing in Europe is better than most of the architecture private and public I see in the US.

Premanufactured and modular small and tiny homes have to be government supported, Amazon and Costco have 400 sq. foot tiny's under $20,000 that can be dropped and set up in a day and move in tomorrow.

But, the developers, contractors, bankers, brokers, investors, private equity companies, don't want affordable housing, they make a lot more money from big expensive housing. The more expensive the better.

Government can't fix that problem, but by investing in social housing as Europe has for a century the competition should be able to mitigate the prices. But that requires politicians with some comprehension of economics and housing policy and an attention span longer than 10 minutes.

Victor's avatar

a big part of our housing problem is that our cities attained their present form and expansion to suit the wants of automobile owners. Our urban areas make inefficient use of space, and require long, costly commutes. Current property owners should not subsidize the housing needs of underpaid workers. Wages must cover housing needs.

Tina's avatar

"Premanufactured and modular small and tiny homes have to be government supported, Amazon and Costco have 400 sq. foot tiny's under $20,000 that can be dropped and set up in a day and move in tomorrow."

Reminds me of the Sears and Roebuck homes of long ago.

Donald Hodgins's avatar

Transgender athletes--

I find it difficult to believe this is even a topic of discussion. I have a degree in medical science so I am quite familiar with the human body. It's a fact that the male anatomy differs from that of the female's in several ways. Obviously the reproductive systems we are provided with at birth is one difference and the second being "Musculoskeletal Sexual Dimorphism." The two sexes are by no means equal in ability, leaving the male of our species superior in the field of athletics. It is only logical that men and women compete separately out of a sense of fairness. There are approximately 8.2 million students competing at the high school level and some 556,000 collegiate athletes as well. Transgender women represent .002% of the athletes at the university level which equates to about 40 some individuals. The percentage of Transgender girls in high school is higher due to the amount of over all participants, this number is in the area of 122,000 students. It's the high school situation that is of special concern to me. These girls are vying for scholarships as a means to enter college because of the high price of tuition. If they have to compete against a man their future is now in jeopardy. Transgender girls must come to grips with the reality of their situation. They were born with a deformity, a male body occupied by a female mind. I empathize with their problem. However, we live in a Democracy where the majority rules, and that group's well being is of the highest consideration. We as a society can't bend to the needs of the few while punishing everyone else. In life, we must learn to confront our limitations. The differences we are born with will represent the obstacles we must overcome as adults. I am not a bird and I'm comfortable with the understanding that I will never fly.

TOM PAIN's avatar

Sports are just games, they won't make or break the world. I'm endlessly astonished that so many people are so obsessed with the sexuality and gender identities of a very tiny minority of strangers they'll never meet,

Einstein never got an athletic scholarship.

It would make a lot of sense to just accept people as they are and move on. About 9% of all people globally are LBGT, that's about 28 million in the US, about 720 million in the world,

LBGT is natural and normal, it happens naturally in nature and among several hundred animal species too.

About 1 in 11 of everyone anyone will ever meet, see, know, be related to, work or go to school with, will be LBGT.

As the old cowboy I knew put it, "Let 'em be."

Google 9% OF ALL PEOPLE ARE LBGT.

Donald Hodgins's avatar

Tom--The sports I'm referring to go way past just games, I'm talking about people's lives that are fueled by the sports we love to watch. Professional sports generated some $48.9 billion in revenue last year alone--way more than a game.

progwoman's avatar

I hear you, but as someone who grew up when women's sports were rarely monetized, I enjoyed intramural sports in a girls school without all the competitive pressures. It seems that this whole trans obsession is tied to an over-importance of competition for scholarships and maybe pro opportunities, but we've lost sight of things that can't be monetized, like friendship and the pleasure of becoming a skilled player. It would be good not only for trans girls but those who are cisgender to form respect and friendship for one another. And if a trans girl is a team's star, maybe her teammates could be happy about that.

Tina's avatar

My granddaughter's best friend is trans. She became he a couple of years ago. I doubt anything medically was done (yet), but he is now considered he. My granddaughter has absolutely no issue with any of this. They're both 14yrs old and will probably remain friends for a long time. Whether I, in my old age, think this is rather odd doesn't matter. What does matter is that my granddaughter accepts her friend as he is, and I am so very proud of her for it.

Victor's avatar

and why has this problem become so politically prominent? Is it not a calculated distraction from the gutting of public education?

Tina's avatar

Because it plays directly into the base that cannot accept anyone or anything different.

Greg Movsesyan's avatar

Perhaps the problem is in allowing high school sports to be a route of admission to college, and then to have college sports be a route of admission into professional sports. What ever happened to book-learning as the road to intellectual advancement?

Jamie Fields's avatar

SOMEONE PLEASE! PLEASE RELEASE THE EPSTEIN FILES AND READ THE NAMES!

richard winkler's avatar

That is the way is should be Robert, but none of that is going to happen. This country is done for.

Henry Jay Forman's avatar

These are wonderful ideas that are only possible in a new nation formed from blue states with either no Senate or a proportional one, a President who can easily be put out of office, independent agencies that the President whose members s/he appoints but cannot remove without a 2/3 vote of the House, no electoral college, no contribution of more than $100 to any individual campaign or PAC, a SCOTUS with term limits, ethics rules and easy removal for their violation, and more. We will never see much of your plan with our current system.

chris lemon's avatar

That's more or less the parliamentary system almost ever EU country has. But the US absolutely never, ever, learns anything from any other country.

Timothy Cooper's avatar

Absolutely right, but it will be an uphill battle because the system has gotten so screwed up with politicians taking so much money from donors (translation: Big Biz, Big Ag, Tech), and the way the system has operated for so long to benefit people who wonʻt want to give it all up - Karen Cooper

Mary Ann Y's avatar

From your mouth to God's ear.... we know he doesn't even understand a bit of this, and keeps repeating the same old warnings over and over. I agree that he is trying to find a way to bring the whole country down so "they" can get their hands on "us". It's frightening. What's even more frightening are the number of people that STILL trust him and those with their heads in the sand.

Lori B.'s avatar

What these should be is the Democrat's platform. I am mightily tired of the corporate dems and so sick of the cowardly, deliberately ignorant republicans. A pox on both their houses

Valeria Brabata's avatar

Could you please run for president?

Franca Garofalo's avatar

I second the motion!

Dennis King's avatar

Thank you, Robert, for clearing up the fallacy of trump's ruse that affordability is a fake term made up by the 'radial left lunatics'. He just lies as easily as he breathes. Just a few words about busting up monopolies - you say that "big corporations are now merging and buying up competitors at a rapid rate ... but this leads to less competition ... resulting in higher prices". Inevitably, in most mergers that I know of, the merged corporations are prone to shed the divisions of the formerly competitive companies such as product development and customer service which made them successful in the first place. This is because the fast buck mindset which rules Wall Street holds sway over the benefit of serving the consumer with high quality and decent service. This fast track to market dominance ultimately leaves the consumer in the ditch.

Dennis King's avatar

The startup firm with which I engaged 25 years ago to supply advanced separatory processing to the biopharmaceutical industry had everything going for it technologically. Yet when the proven product was demonstrated to the pharmaceutical giants, the finance wing of these firms lacked the vision to replace their archaic technologies with a compact and superior process which could have provided a degree of purity of injectable medicinals to the degree of 99.999 purity, as mandated by the FDA of the day and verified by an electrophoresis analytical process. To expect such a process as this to be supported at a university lab by this anti-science regime would be ludicrous!!! This country's standing as a global leader in cutting edge

science is at the brink of ruin, and that's just the way that XI and Vlad want it. I wish that I had better news, but I'm coming to the end of my line. And as for drumpf's dalliance with supposed fusion technologies, my 10c worth is to hold back your funding. 25 years ago, viable reactors were said to be just 2 or 3 years away. As with any drumpf enterprise you would be skinned alive to engage.

Joe Bacon's avatar

I went grocery shopping today. Bought one pound of deli ham, one pound of turkey and one pound of buffalo chicken. Also bought rolls, a quart of Cole slaw, a pound of Swiss cheese, a bottle of mayonnaise and a loaf of deli rye bread. Total was $50. Before it was just over $30. When Trump's stooges tell me inflation was 2.7% they're lying their ass off.