And why that's a big mistake
Why do you say you are sorry, Robert? You aren't sorry at all. You are mad as Hell and you aren't gonna take any more of this, right? Me, too.
The more voters who know about the inflation myth, the better. I'm putting what little money I have on progressives who are not bought. Thank you, Robert Reich, for this information!
I think you left out a big factor, Robert. Beyond being bad politics, alienating corporations threatens campaign finances. Because our elections are funded by the private sector, our leaders are held hostage. Sinema and Manchin?
Biden has a minimum of political capital with low approval ratings and a razor slim margin in Congress.
I am with you that this an example of the oligarchs winning again. But there is just one battle that MUST be won this year. The midterm elections.
Larry Summers is just another old white guy who has been anointed with gravitas that is totally undeserved and he needs to be ignored by the media.
So in San Francisco there is lots of competition among coffee sellers and yes Starbucks and Peets have raised their prices very significantly but from casual observation their stores are as full with customers as always. One can even make coffee at home. So what’s up?
Congress no longer represents the interests of the people but the interests of their donors i.e. corporations. How is this ever going to change when the people responsible for doing the right thing by voting in responsible legislation are the same pigs at the trough of the corporate feedsack?
Corporations have an entire party at their beck and call. Forbes published data about enormous profits during the pandemic. Media including The Washington Post insisted that Dems elect and appoint centrists. America is so top heavy that centrists seem like annoying fleas. Dems can only pass what the GOP allows. 6 trillion in rescue funds went pouf and cannot be traced. America is in the hands of these powerful corporations who do not find any value in humanitarian endeavors. How shortsighted are they to hurt their own consumers. Good article Mr. Reich.
You are correct as usual. The Biden administration is probably picking their battles as there are so many atrocities to point out! They probably do not want to rub the most powerful the wrong way! Us social democrats have a huge plate of bitter roots to eat. Turning an enormous ship on a dime may sink it or at least capsize the monster.
It seems that every time he opens his mouth Larry Summers does a lot of damage.
My takeaway from today: Price gouging under the guise of inflation is quite a profitable scam for greedy corporations who face little competition and no accountability. Elizabeth Warren has said much the same thing you are saying. I had to Google the Federal Reserve to see what it is. Thanks for the opportunity to learn every day. You are so right about the media. They keep talking about Inflation. I’m glad you are bringing the truth to all who will listen. You are one of the few trusted sources for news that I depend upon. CNN has become unwatchable for the most part. Bernie Sanders and Elizabeth Warren and members of the House keep me informed as well. Blockhead Manchin and Queen Sinema are the exception. I trust our President and his cabinet to lead us out of, or through, what seems to be a possible WWIII. We are on the precipice of an even more difficult time in our history. At least now it looks as if Trump may be held accountable for a few of his disastrous actions, at least through civil litigation. We have so much going on in this country it’s no wonder we are being bamboozled by greedy corporations and they are sitting high and mighty while starving their employees with non-livable wages during the horrible pandemic, and the polarization of our people—Dems and Republicans who are waging a Civil War on our own soil. How will we ever survive these trying times? I look to Robert Reich for the truth and he is always right. We need leaders who will stand firm and bring us through these troubling days and nights with the real story. Thanks for all you do with posts and Inequality Media and going on media outlets to bring us knowledge because knowledge is power, and we have to navigate through this period of time with a bit of HOPE.
Are there examples of big-name corporations that ARE using their profits to counter higher supply-chain costs (rather than passing these costs onto the consumer)? I wonder if giving them (if there are any!) a high-profile shout-out would help any?
Also, the cynic in me wonders if some of what's behind this is just some we're-doing-what-we-can-to-make-Biden-look-bad tactics. If they bloat their profits in the meantime, it's a (sick) win-win. To hell with the consumers.
One way, maybe the best way, to fight back is to stop doing business with these corporations. Eat less meat, stop going to McDonalds, cancel your Amazon Prime membership, make your own coffee. I believe that corporations are very sensitive to consumer demand. If they see less customers, they will lower prices to try and bring them back..
When I hear the same story on MSNBC that inflation is the big bad wolf (no doubt made worse by Biden and the Democrats) I realize that Corporate media is Corporate Media. They are on message on show after show from pre-dawn through well after sunset, the message of INFLATION is repeated constantly. It is bu!!$#it cannot be repeated enough, at least to this old lady!
It is ironic that two economists who may decry 'business bashing' are Democrats, and most Democrat voters will be harmed by the sole 'remedy' of the Fed that is raising interest rates. Gasoline on the fire under most working people and elders. My grown kids are just getting on their feet. My daughter is expecting a baby, and she. And her Navy husband will have to move to another state soon. My son and his bride are going to be looking for a house. I need a car at some point, we have been a one car unit. Interest rates going up will not help anyone but the wealthy.
Thank you for your continued advocacy for the little guy.
We have been indoctrinated with the idea that when demand exceeds supply, prices somehow organically must increase. Of course, as you said, it is humans who decide to raise prices. Members of the Council of Economic Advisors are knowledgeable and capable, but they are not infallible. Moreover, they were hired for their economic, not their political expertise. Biden doesn't have to take their advice on everything. He should again be beating the drums that prices are increasing at least in part due to corporate greed. If he doesn't, he will end up shouldering all the blame.
What I find so disheartening is we have a great opportunity at this time in history, after this great upheaval of a pandemic, to set our country back on a course toward real equality akin to what FDR started in the 40’s. But we do not seem to be able to slip the bonds of this great corporate control and greed. I remember learning in high school about monopolies and busting them up. It struck my young mind how amazing that was. These big big businesses were not allowed to control so much of a sector of the economy! And when our government accomplished this, it would never be able to happen again! More and more I KNOW that we must be the change we want to see. This is our time to change the outcome of the major inequality we are stuck in at this time, in our history. We can and must change what seems inevitable. Biden seems to have the courage, but politics and big money is in the way.