Friends, We learned today that the Consumer Price Index climbed 3.5 percent in March from a year earlier, up from 3.2 percent in February, and faster than most economists anticipated. This poses a conundrum for central bankers who have made it clear that they want to see further evidence that inflation is cooling before they cut interest rates.
"... the company had “earned the right” to push price hikes."
This is what happens when the word, "right" becomes overused and misapplied. The is no such right. There is only the choice to raise or not raise.
We also have a choice: We have the choice to not buy their products. We have to show corporations we are not powerless and can walk away from discretionary purchases.
"...Republicans and their business backers are dead set against it — and are eager to blame continued high prices on Biden, not on corporations."
This is not a new tactic. It happens every election year when Democrats occupy the Executive branch. It has become predictable. And the news media is in cahoots with it, hence the lack of honest coverage.
We have much more power than we realize. But, if we don't vote, the GOP wins; their constituents vote. We have to making voting a priority in our lives in numbers that guarantee victory.
As far as power against corporate price gouging: walk away from discretionary purchases. And don't return. Make it a permanent choice and don't change until there is real evidence of long-term fair pricing that average people can afford. Corporations listen to reduced sales, and they won't change first. We must force the change.
Professor Reich hit this nail right on its head! Corporate power, insufficiently supervised and regulated, is creating inflation, making the rich richer and the poor poorer, and subverting our electoral system.
Everyday someone posts that the inflation is caused by Biden. These people really believe it because they only listen to the same BS news stations that are only out for clickbait makes them a dollar. None of them have ever heard of Substack or any other sources than whatever other MAGAs are spreading about their hatred for Biden and democrats. If you try to show them the information that’s true they just retreat because it’s not what they want to hear. It’s actually uncool to be a democrat. I hope that we get through this election and that the truth will come out for all to see although I still think they will say it’s fake news and you are woke!
Inflation is a worldwide problem; it isn't just an American institution. With Russia affecting the price of oil on the world market and Saudi Arabia cutting our allotment of crude in half, the cost of logistics has caused the prices of goods to rise dramatically, not the fault of the President. President Biden has taken to pumping more oil from our own reserves than ever before in an attempt to ease the pain at the pump. Do people give him credit for what he's trying to do? Hell no. Go Joe.
imagine if Americans who are complaining about high prices just stopped buying the high priced items. I think we could all live without Coke and Pepsi products for at least six months. That will bring the prices down.
Why is it, we the people, know exactly what is screwed up? It is because corporations, their CEOs, and boards are running wild with the complete blessings of congress. I might also posit that both GOP and DFL have ownership in this issue.
The record profits of large corporations are coming out of the paychecks of average Americans, who are still struggling to get by.
Biden and the Democrats must say this loudly and clearly and tell the public what they are doing — and will do — to stop corporate monopolies and price gouging.
Yes, the above is true. Anti-trust laws that are stronger is the way to control big business? i say good luck. Let's get Biden and dems in Congress and Senate and then we can change things to help with housing market and high prices etc.
Robert, you are talking about two different problems here. The first is about monopolies driving up prices in their particular sector. Yes, I agree, no problem with that, needs better enforcement along with naming and shaming, and the threat (and action) of seizing all excess profits in one-off taxes. As has happened here in France and other European countries after Covid.
But sticky inflation is across the board, products, energy, wages, property, assets, collectibles........ Inflation is ALWAYS a monetary issue. Inflation is the devaluation of money, and its cause is printing too much money for the needs of an economy. At the moment that is what has happened since the crash of 2009, and we had 12 years of QE, pumping once-unimaginable amounts of imaginary money into Western economies.
The major problem with QE, widely warned about in 2009, is that no-one knows how the manage the reverse; getting all that excess money out again when economies recover! There are basically three ways that excess money is destroyed:
1. An economic crash that wipes out assets and investments to the value of the excess money. In this case, with these huge amounts involved, the Mother of All Crashes. May well still happen.
2. The money itself devalues, as is happening now, and continues to do so for a long time until the value of the money in circulation matches the trading and real investment needs of the economy. In current circumstances, that would take a ver long time!
3. The money gets caught up in a hyperinflation death-spiral, as has happened in Weimar Germany in 1923, Zimbabwe, Argentine, etc. Britain has come very close a few times. Turkey is on the cusp right now. Many say America is very vulnerable because of its huge, un-repayable debts and it is slowly losing its Reserve Currency status.
Certainly right now there are economic bubbles everywhere, with massive amounts of excess cash sloshing around the world, trying to find any investment that can make a real return. Because there are so few of those, the only way to make a return of, say, 5% plus is by pumping up so-called assets or share values and trading the assets and shares on, a kind of international pump-and-dump operation that destroys companies and destroys markets.
These hyperinflationary bubbles are easy to spot; $million cars, for example, unaffordable houses, unknown trash becoming 'art' and collectible and tripling in so-called value in a year.
Obviously what can't go on doesn't go on. The big question is, which of the three choices above will end the splurge of fake money? I'd guess No.2 to start with sticky inflation for a year or two, ending with either a major crash or hyperinflation.
The problem sure looks like capitalism taking over the planet, as described in The Marketocracy, i.e., the supremacy of market values and rules that overshadow the power of nation states and existing international law. Three additional forces that characterize marketocracy: moral inversion, double dehumanization, and the pecking order.
Reich’s “class warfare” mentality regarding inflation has caused him to ignore the 10,000 pound elephant sitting in the same room - the 30-40% increase in the monetary aggregates that occurred in 2020-21 as part of the Fed’s scheme to “stimulate” the economy. One of the first principles of economics is that excessive money printing results in inflation. Reich should stop pretending to be an economist and take a basic course in Econ 101.
Robert, there are some of proposals that could be added to Biden's campaign:
It needs to be very public, with Biden calling in the CEO and directors of each corporation to explain themselves, and then hold a press conference after each one to publicise their excuses. Include photos of each of the CEOs and directors - people need to see their faces.
- Start with the Colas, not least because of their arrogance. Call them anti-America, and threaten to call the new measures The Cola Tax!
- The reason companies are doing this is to boost CEO and director's salaries and returns to shareholders, so include a windfall tax on any increase in bonuses to management over, say, the last 5 year average. Also add a sanction that any company found guilty of profiteering or monopoly practices could have its returns to shareholders capped at 5% return for 3 years or 5 years. That would seriously hit their share prices without affecting the core business.
- Include a law that makes the corporation's accountants/auditors legally responsible for reporting excessive profits or anti-competitive behaviours. If they sign off the accounts without declaring, then they become legally responsible. They are unlikely to take that chance and, if they do, are rich enough to pay the fines. This means the accountants will be warning the Board before signing off the annual accounts, which will make wide enforcement much easier.
Here in France, immediately after Covid when companies started the high price rises, President Macron called in the CEOs of the largets supermarket chains and food companies and warned them that he would introduce a windfall tax immediately if they didn't stop their unjustified price increases. Within two weeks, the supermarkets had big banners announcing price cuts, and how they were protecting their customers!
Those suppliers that refused to cut their higher prices or reduced the sizes for the same price were shamed or banned, with products on the supermarket shelves carrying big stickers 'Warning, Shrinkflation!' Or the shelves left empty with a sign, 'This product withdrawn due to excessive price increase'.
France now has one of the lowest inflation rates in Europe.
President Biden should use his Bully Pulpit and threaten to breakup the near monopolies in the food industry. He needs use against the large corporations who are buying up rental property and charging exorbitant rents. He needs to call fuel industry executives in, airline company executives in and investigate why colleges are so expensive. With colleges he should begin by looking at the growth of administrative costs. Emerson
Yes, curbing corporate power on all fronts needs to be a central message of the Biden campaign.
"... the company had “earned the right” to push price hikes."
This is what happens when the word, "right" becomes overused and misapplied. The is no such right. There is only the choice to raise or not raise.
We also have a choice: We have the choice to not buy their products. We have to show corporations we are not powerless and can walk away from discretionary purchases.
"...Republicans and their business backers are dead set against it — and are eager to blame continued high prices on Biden, not on corporations."
This is not a new tactic. It happens every election year when Democrats occupy the Executive branch. It has become predictable. And the news media is in cahoots with it, hence the lack of honest coverage.
We have much more power than we realize. But, if we don't vote, the GOP wins; their constituents vote. We have to making voting a priority in our lives in numbers that guarantee victory.
As far as power against corporate price gouging: walk away from discretionary purchases. And don't return. Make it a permanent choice and don't change until there is real evidence of long-term fair pricing that average people can afford. Corporations listen to reduced sales, and they won't change first. We must force the change.
OK. Bur we don't control the House. Biden should have the power to sue price fixers and price gougers. The best he can do is threaten. California is suing Amazon for price fixing. https://oag.ca.gov/news/press-releases/attorney-general-bonta-secures-court-decision-denying-amazon%E2%80%99s-attempt-evade#:~:text=In%20September%2C%20Attorney%20General%20Bonta,California%20through%20anticompetitive%20contracting%20practices.
The way to get that authority is to win. Here's how. https://www.fieldteam6.org/mission
Professor Reich hit this nail right on its head! Corporate power, insufficiently supervised and regulated, is creating inflation, making the rich richer and the poor poorer, and subverting our electoral system.
Everyday someone posts that the inflation is caused by Biden. These people really believe it because they only listen to the same BS news stations that are only out for clickbait makes them a dollar. None of them have ever heard of Substack or any other sources than whatever other MAGAs are spreading about their hatred for Biden and democrats. If you try to show them the information that’s true they just retreat because it’s not what they want to hear. It’s actually uncool to be a democrat. I hope that we get through this election and that the truth will come out for all to see although I still think they will say it’s fake news and you are woke!
Inflation is a worldwide problem; it isn't just an American institution. With Russia affecting the price of oil on the world market and Saudi Arabia cutting our allotment of crude in half, the cost of logistics has caused the prices of goods to rise dramatically, not the fault of the President. President Biden has taken to pumping more oil from our own reserves than ever before in an attempt to ease the pain at the pump. Do people give him credit for what he's trying to do? Hell no. Go Joe.
G R E E D =
M O N O P O L I E S
imagine if Americans who are complaining about high prices just stopped buying the high priced items. I think we could all live without Coke and Pepsi products for at least six months. That will bring the prices down.
This is Bob at his very best, going after what Wolin defined as corporate totalitarianism.
Why is it, we the people, know exactly what is screwed up? It is because corporations, their CEOs, and boards are running wild with the complete blessings of congress. I might also posit that both GOP and DFL have ownership in this issue.
The record profits of large corporations are coming out of the paychecks of average Americans, who are still struggling to get by.
Biden and the Democrats must say this loudly and clearly and tell the public what they are doing — and will do — to stop corporate monopolies and price gouging.
Yes, the above is true. Anti-trust laws that are stronger is the way to control big business? i say good luck. Let's get Biden and dems in Congress and Senate and then we can change things to help with housing market and high prices etc.
Robert, you are talking about two different problems here. The first is about monopolies driving up prices in their particular sector. Yes, I agree, no problem with that, needs better enforcement along with naming and shaming, and the threat (and action) of seizing all excess profits in one-off taxes. As has happened here in France and other European countries after Covid.
But sticky inflation is across the board, products, energy, wages, property, assets, collectibles........ Inflation is ALWAYS a monetary issue. Inflation is the devaluation of money, and its cause is printing too much money for the needs of an economy. At the moment that is what has happened since the crash of 2009, and we had 12 years of QE, pumping once-unimaginable amounts of imaginary money into Western economies.
The major problem with QE, widely warned about in 2009, is that no-one knows how the manage the reverse; getting all that excess money out again when economies recover! There are basically three ways that excess money is destroyed:
1. An economic crash that wipes out assets and investments to the value of the excess money. In this case, with these huge amounts involved, the Mother of All Crashes. May well still happen.
2. The money itself devalues, as is happening now, and continues to do so for a long time until the value of the money in circulation matches the trading and real investment needs of the economy. In current circumstances, that would take a ver long time!
3. The money gets caught up in a hyperinflation death-spiral, as has happened in Weimar Germany in 1923, Zimbabwe, Argentine, etc. Britain has come very close a few times. Turkey is on the cusp right now. Many say America is very vulnerable because of its huge, un-repayable debts and it is slowly losing its Reserve Currency status.
Certainly right now there are economic bubbles everywhere, with massive amounts of excess cash sloshing around the world, trying to find any investment that can make a real return. Because there are so few of those, the only way to make a return of, say, 5% plus is by pumping up so-called assets or share values and trading the assets and shares on, a kind of international pump-and-dump operation that destroys companies and destroys markets.
These hyperinflationary bubbles are easy to spot; $million cars, for example, unaffordable houses, unknown trash becoming 'art' and collectible and tripling in so-called value in a year.
Obviously what can't go on doesn't go on. The big question is, which of the three choices above will end the splurge of fake money? I'd guess No.2 to start with sticky inflation for a year or two, ending with either a major crash or hyperinflation.
Just my view.
The problem sure looks like capitalism taking over the planet, as described in The Marketocracy, i.e., the supremacy of market values and rules that overshadow the power of nation states and existing international law. Three additional forces that characterize marketocracy: moral inversion, double dehumanization, and the pecking order.
Reich’s “class warfare” mentality regarding inflation has caused him to ignore the 10,000 pound elephant sitting in the same room - the 30-40% increase in the monetary aggregates that occurred in 2020-21 as part of the Fed’s scheme to “stimulate” the economy. One of the first principles of economics is that excessive money printing results in inflation. Reich should stop pretending to be an economist and take a basic course in Econ 101.
Robert, there are some of proposals that could be added to Biden's campaign:
It needs to be very public, with Biden calling in the CEO and directors of each corporation to explain themselves, and then hold a press conference after each one to publicise their excuses. Include photos of each of the CEOs and directors - people need to see their faces.
- Start with the Colas, not least because of their arrogance. Call them anti-America, and threaten to call the new measures The Cola Tax!
- The reason companies are doing this is to boost CEO and director's salaries and returns to shareholders, so include a windfall tax on any increase in bonuses to management over, say, the last 5 year average. Also add a sanction that any company found guilty of profiteering or monopoly practices could have its returns to shareholders capped at 5% return for 3 years or 5 years. That would seriously hit their share prices without affecting the core business.
- Include a law that makes the corporation's accountants/auditors legally responsible for reporting excessive profits or anti-competitive behaviours. If they sign off the accounts without declaring, then they become legally responsible. They are unlikely to take that chance and, if they do, are rich enough to pay the fines. This means the accountants will be warning the Board before signing off the annual accounts, which will make wide enforcement much easier.
Here in France, immediately after Covid when companies started the high price rises, President Macron called in the CEOs of the largets supermarket chains and food companies and warned them that he would introduce a windfall tax immediately if they didn't stop their unjustified price increases. Within two weeks, the supermarkets had big banners announcing price cuts, and how they were protecting their customers!
Those suppliers that refused to cut their higher prices or reduced the sizes for the same price were shamed or banned, with products on the supermarket shelves carrying big stickers 'Warning, Shrinkflation!' Or the shelves left empty with a sign, 'This product withdrawn due to excessive price increase'.
France now has one of the lowest inflation rates in Europe.
President Biden should use his Bully Pulpit and threaten to breakup the near monopolies in the food industry. He needs use against the large corporations who are buying up rental property and charging exorbitant rents. He needs to call fuel industry executives in, airline company executives in and investigate why colleges are so expensive. With colleges he should begin by looking at the growth of administrative costs. Emerson