384 Comments

Robert, I know you’re absolutely correct but, what do we do? How do we get the message to right people in Washington to stop this madness? To break up the corporate monopolies? To stop the rising interest rates? To get things back on track? The System is so broken that it seems downright impossible to change the trajectory of things. It’s depressing. Powell seems he’ll bent on breaking the backs of every day Americans to reach his impossible goal. He’s not stupid. He has to see what is obvious to you and the rest of us. He reads the numbers. Why is he doing this? Is he just another power hungry politician? Obsessed with his own agenda? I’m no economist but, even I can see that the economy is improving and that we don’t need further rate hikes. The man is obviously not stupid. Inflation is coming down. Corporations are gouging consumers and our representatives are doing nothing to stop them. These monopolies have to be broken up for the good of all and the health of our country and the people. We can’t keep existing like this. The inequalities between the rich and the poor are so huge now that we barely have a voice anymore.

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founding

This is one of the reasons it can be so tough to keep supporting Dems. It's clear the corporate friendly strategy isn't working for actual people, so what will they do? Keep it going with no lessons learned. No meaningful effort to stop corporate greed. No effort to take back the trillions that have been taken from the millions struggling due to the failure of government to reign in monopolies and consolidated industries.

Then, Dems will stand around wondering why so much misery and anger has built up that the GOP will get massive support from voters who are told the Dems are responsible for that pain. And so it goes...

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Thank you so much, for your message, and for sharing it with your readers! It is a clear explanation, very helpful for our understanding of what's affecting our personal as well as national monetary context.

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Thank you for exposing this folly. The policy of raising rates is based on the assumption that the poor have too much money and insufficient sense to control themselves. But the poor, by definition they never have too much money. They mainly spend on just making do. That was the major reason credit cards were invented -- to lure them into spending more than they have. Raising interest rates kills the poor by accident. Surely it's real target is speculators, and its real beneficiaries are the owners of credit money (liquid capital). Raising rates is therefore an attempt to puncture speculative balloons. Taxing capital growth and giving the revenue to the poor would be far more effective, but such measures would undermine the current version of the "American ideology" (there have been others) that the ethical and political test of everything is the freedom of the individual to enrich himself beyond any social or ethical considerations, provided it is not outright theft. America needs to re-read Tom Paine.

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BRAVO, Professor Reich!

I hope this letter has been sent via certified mail.

Thank You, Thank You, Thank You!

Anne 🙏

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Inflation sucks the blood of the lowest paid workers. It enriches the already obscenely wealthy. This is not sustainable.

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founding

This is just more evidence that nothing works right in a capitalistic economy unless greed is regulated. Adam Smith said so, to great effect, but greed corrupts and absolute greed corrupts absolutely.

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I am 75, a veteran, retired nurse and have to say I have grown so weary of greed in this country. Some of us are never satisfied and want more, just more stuff! Others, like me, count pennies and hope the other shoe doesn’t drop. I have worked hard all my life and the 2007 bank debacle took all my IRA…and now, Wall Street is obese and I am left counting my meager Pennie’s.

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I hope you sent this to all the major news outlets as an open letter!

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The top one tenth of one percent could reduce inflation to zero today!

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I trust you Robert Reich. Your clarity of values and economic Justice are second to none.

As you have stated this is not the same world we lived in 1950. A time when the income & wealth disparities have no comparison in the realities of today. Today those wealth disparities are so severe that owning a home, one income in one family or ability to afford colleges without mortgaging futures is a distant dream. That is the reality the masses are living with.

We are also living in a time when the passage of Citizens United has made it possible to buy elected officials. Those elected officials have increasingly abandoned Democracy- we the people for the rich & powerful.

In the end we the people- the majority are the life & blood of this country. We the people are the teachers, the nurses, the police etc that keep it all functioning. If the people begin to believe that no justice will come & they will continue to suffer the injustices we have today- then I fear for my country, our Democracy & the future of generations to come.

Thank you Robert Reich for your unending dedication to see that Justice becomes a reality once again in America. I pray your letter is fully understood and the consequences of not doing so do not come to pass.

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Quote: "There’s nothing sacrosanct about 2 percent. Why not 4?"

An essential point. Somewhere along the line 2% was invented as the natural target with respect to inflation. Somehow this standard assumed the status of Divine Decree, it simply does not have to be that way. The humane approach here would be to cut the raises and see what happens with the suggestion that rates may have to be raised at a later point. There is supposed to be a 12 to 16 month delay between the rate rise and the final effect anyway.

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Agreed, but the crux is that the Fed is owned by the commercial banks who are also in the rich boys' club!

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Powell is robbing the poor to give yet more to the obscenely wealthy!

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From the bottom 20%, thank you.

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Thank you for sending this astute and articulate letter. I hope it gives him pause for thought.

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