Unfortunately, Democrats seem always to be a few steps behind Republican messaging, so people have already heard what they think they need to hear by the time Republicans have pumped out their message. Democrats, then are seen as whining or making things up. Even though what Republicans have to say is usually not accurate or at least, not well thought out, it doesn't matter. The people have their set of explanations - that Democrats and Biden have caused whatever pain they are feeling. Thinking about it more deeply rarely happens for a variety of reasons, laziness being a prominent one. Also, economics is more complex than a 3-word slogan. I like Dr. Reich's suggestions for what we need to do. The question is will we start doing it and soon enough to beat the Republican super-messaging machine. R.Sheets
I like Biden, but I feel that he is too old for another term. He could really do the party a great service by accomplishing what he said he would, and go after the large corporations that are raking in record profits, then redirecting this wealth where it is needed most. By intentionally becoming a one term president, he could enhance his legacy, help those who are most in need, and set his party up for a successful 2024 campaign. The republicans are doing nothing to help the economy, and with his popularity in free fall, what does he have to lose? Bipartisan efforts are not working; it’s time for executive orders and FDR governance!
Thank you. Dr. Reich for this very informative essay. I really don't understand why the Biden Administration is not willing to A) condemn these corporations for their obscene profits, and B) pursue anti-trust legislation that already exists to reign in some of the profiteering. As for a windfall profits tax I know it has to originate in the House of Representatives, which is doable so long as we control the House. But the Senate will continue to prevent any legislation that will help ordinary citizens at the expense of their wealthy donors. Biden needs to say this and say it often.
Fifty years ago Donella Meadows and a team called "the Club of Rome", really out of MIT, wrote a book called Limits to Growth. In it the claim, based on what we now think of as crude modelling programs, that humans were growing beyond the resource limits of the planet. William R. Catton called the "Overshoot" in his book by that name. William Rees and others, who do ecological footprint studies, basically confirm and expand on these subjects. We are in overshoot, which means we need to degrow. Our economy is based on a false belief in continuous growth. Medically that is known as cancer. Perhaps recession is simply a forced recognition of that need to degrow. We can do it less painfully if there is a much better and fairer distribution of resources (graduated income taxes as in the Eisenhower era anyone?), but overall we must use a lot less energy and fewer resources if we are going to adequately address the climate crisis. I would love to hear your comments on this.
Thank you for educating me (and so many others), providing the changing context to today’s economy and politics and keeping me informed so I can make the decisions I need as we move forward as a republic and as a family, and everything in between. Your efforts are appreciated more than you will ever know.
This is what just drives my crazy about Democrats: Their absolute insistence that they lose elections.
"So you're saying it would be good for the economy, deny the other party the main thing they're attacking me for, and help me win the next election? Yeah, that's not how I roll. I'll pass, thanks."
I agree with your political analysis. I have been frustrated that Biden has failed to fully use his bully pulpit to communicate these messages to the public. He'll say something a few times here and there, which, in the mass of information with which the public is bombarded, doesn't get through. Bernie Sanders and Elizabeth Warren have been telling it like it is, but they are dismissed by the news media and even some Democrats as "far left extremists." Democrats should do what Republicans do: craft a message that resonates, and then have all of them repeat it, in tweets, on the Sunday talk shows, in impromptu interviews in the Capitol, in local news media, wherever they can, over and over.
Biden’s a disappointment plain and simple. As you pointed out there are several things that he should be doing. This is a political authoritarian inspired recession to blame democrats. A recession showing up just in time for midterms is no coincidence. Americans need to look beyond tough times as to who is responsible and why. Fascism plain and simple
The issue I’ve been struggling with is identifying the principal cause(s) of the current worldwide inflation. I do not understand how to separate the effects of supply-demand, ongoing infrastructure constraints, and price setting or “price gouging” by large corporations.
In Italy there is already a tax on the additional profits of the oil companies, and in Germany this is currently being discussed as to whether it would be legally enforceable. The question is, of course, whether this would make sense. In Germany, there is currently a so-called tank rebate; taxes are waived by 30 cents when filling up, which has only resulted in prices remaining the same for the consumer. Legally, it is rather difficult, because during the Corono crisis, biotech companies would also have had to be taxed more heavily...Therefore, in Germany, for example, they are thinking about limiting the market monopoly of the oil companies.
I have never understood how the economy works, and am not much better enlightened even after your excellent attempt to explain it. What I do understand is if this election is fought on the state of the economy, the Republicans will probably win the election, and that is the worst possible outcome this year! There are so many forces at play here, and the Republicans are America's WORST ENEMY. Social programs will suffer, minorities will lose their rights to vote, the abortion question will be answered in a way that HURTS EVERYONE, wealth inequity will not only continue to increase but will speed up the rate of inequity growth, and any gun control gains that are made in the next few months may very well be lost and turned around even worse. These consequences and more cannot be allowed to happen! SOCIETY IS BEING DESTROYED FROM THE TOP DOWN, and it is not just a trickle, but a tidal wave of destruction.
Democrats must act to overturn the economic panic attacks being sold to Americans by the Republicans, and emphasize the social ills that will result from a Republucan victory in either the House or the Senate. Instead Biden must be given given WORKING MAJORITIES IN BOTH CHAMBERS in order to stop the cancer of Repuglycanism. If American voters cannot see that, you might as well kiss your asses goodbye. MAGAtism will return in full force!
Unfortunately, Democrats seem always to be a few steps behind Republican messaging, so people have already heard what they think they need to hear by the time Republicans have pumped out their message. Democrats, then are seen as whining or making things up. Even though what Republicans have to say is usually not accurate or at least, not well thought out, it doesn't matter. The people have their set of explanations - that Democrats and Biden have caused whatever pain they are feeling. Thinking about it more deeply rarely happens for a variety of reasons, laziness being a prominent one. Also, economics is more complex than a 3-word slogan. I like Dr. Reich's suggestions for what we need to do. The question is will we start doing it and soon enough to beat the Republican super-messaging machine. R.Sheets
I like Biden, but I feel that he is too old for another term. He could really do the party a great service by accomplishing what he said he would, and go after the large corporations that are raking in record profits, then redirecting this wealth where it is needed most. By intentionally becoming a one term president, he could enhance his legacy, help those who are most in need, and set his party up for a successful 2024 campaign. The republicans are doing nothing to help the economy, and with his popularity in free fall, what does he have to lose? Bipartisan efforts are not working; it’s time for executive orders and FDR governance!
Thank you. Dr. Reich for this very informative essay. I really don't understand why the Biden Administration is not willing to A) condemn these corporations for their obscene profits, and B) pursue anti-trust legislation that already exists to reign in some of the profiteering. As for a windfall profits tax I know it has to originate in the House of Representatives, which is doable so long as we control the House. But the Senate will continue to prevent any legislation that will help ordinary citizens at the expense of their wealthy donors. Biden needs to say this and say it often.
Fifty years ago Donella Meadows and a team called "the Club of Rome", really out of MIT, wrote a book called Limits to Growth. In it the claim, based on what we now think of as crude modelling programs, that humans were growing beyond the resource limits of the planet. William R. Catton called the "Overshoot" in his book by that name. William Rees and others, who do ecological footprint studies, basically confirm and expand on these subjects. We are in overshoot, which means we need to degrow. Our economy is based on a false belief in continuous growth. Medically that is known as cancer. Perhaps recession is simply a forced recognition of that need to degrow. We can do it less painfully if there is a much better and fairer distribution of resources (graduated income taxes as in the Eisenhower era anyone?), but overall we must use a lot less energy and fewer resources if we are going to adequately address the climate crisis. I would love to hear your comments on this.
Thank you for educating me (and so many others), providing the changing context to today’s economy and politics and keeping me informed so I can make the decisions I need as we move forward as a republic and as a family, and everything in between. Your efforts are appreciated more than you will ever know.
It all goes back to not nominating and electing Bernie.
This is what just drives my crazy about Democrats: Their absolute insistence that they lose elections.
"So you're saying it would be good for the economy, deny the other party the main thing they're attacking me for, and help me win the next election? Yeah, that's not how I roll. I'll pass, thanks."
AAARRRGGHHHH!!!!!!
Thank you for this economics lesson.
I agree with your political analysis. I have been frustrated that Biden has failed to fully use his bully pulpit to communicate these messages to the public. He'll say something a few times here and there, which, in the mass of information with which the public is bombarded, doesn't get through. Bernie Sanders and Elizabeth Warren have been telling it like it is, but they are dismissed by the news media and even some Democrats as "far left extremists." Democrats should do what Republicans do: craft a message that resonates, and then have all of them repeat it, in tweets, on the Sunday talk shows, in impromptu interviews in the Capitol, in local news media, wherever they can, over and over.
Biden’s a disappointment plain and simple. As you pointed out there are several things that he should be doing. This is a political authoritarian inspired recession to blame democrats. A recession showing up just in time for midterms is no coincidence. Americans need to look beyond tough times as to who is responsible and why. Fascism plain and simple
Bob,
The issue I’ve been struggling with is identifying the principal cause(s) of the current worldwide inflation. I do not understand how to separate the effects of supply-demand, ongoing infrastructure constraints, and price setting or “price gouging” by large corporations.
Help please!!
Tom J, Birmingham, AL, USA
Hope you have sent this to Biden and his economic team professor Reich.
I am concerned about the applicability of current economic theory to current issues.
In Italy there is already a tax on the additional profits of the oil companies, and in Germany this is currently being discussed as to whether it would be legally enforceable. The question is, of course, whether this would make sense. In Germany, there is currently a so-called tank rebate; taxes are waived by 30 cents when filling up, which has only resulted in prices remaining the same for the consumer. Legally, it is rather difficult, because during the Corono crisis, biotech companies would also have had to be taxed more heavily...Therefore, in Germany, for example, they are thinking about limiting the market monopoly of the oil companies.
Curious about the impact on the economy of the mass spending on political campaigns.
I have never understood how the economy works, and am not much better enlightened even after your excellent attempt to explain it. What I do understand is if this election is fought on the state of the economy, the Republicans will probably win the election, and that is the worst possible outcome this year! There are so many forces at play here, and the Republicans are America's WORST ENEMY. Social programs will suffer, minorities will lose their rights to vote, the abortion question will be answered in a way that HURTS EVERYONE, wealth inequity will not only continue to increase but will speed up the rate of inequity growth, and any gun control gains that are made in the next few months may very well be lost and turned around even worse. These consequences and more cannot be allowed to happen! SOCIETY IS BEING DESTROYED FROM THE TOP DOWN, and it is not just a trickle, but a tidal wave of destruction.
Democrats must act to overturn the economic panic attacks being sold to Americans by the Republicans, and emphasize the social ills that will result from a Republucan victory in either the House or the Senate. Instead Biden must be given given WORKING MAJORITIES IN BOTH CHAMBERS in order to stop the cancer of Repuglycanism. If American voters cannot see that, you might as well kiss your asses goodbye. MAGAtism will return in full force!
Beyond politics, there are some things people can do to make the economy more resilient and reduce inflationary pressures:
Reduce unnecessary consumption and car use (there are many ways to do this)
Buy food from local (organic, regenerative) smaller farms (farmers markets)
Cook food at home (it doesn't take recipes and special equipment, it's not that hard)
Acquire new skills in renewable energy, circular economy, etc. (Coursera.org and edx.org)
Other ideas?