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The Fed has been hellbent on raising interest rates to slow the economy, but this puts the burden of fighting inflation on workers.
To continue punishing them by increasing rates to drive unemployment, especially when America’s safety nets are in tatters, is just plain cruel.
@rbreich if they're worried about wage price spiral, why not legalize more immigration instead of causing a recession?
The more cruelty, the more desperate the workforce becomes and depend on their jobs for their very survival, health, food and housing and the more power the bosses/oligarchs and multinationals have over the human beings that make their business possible.
It's economic fascism which is how the UK and the US run their economies.
The more pain and weakness for the workers ,their partners and children, the better for the powerful..
@rbreich They kept the interest rates low for nearly 15 years, pumped the stimulus into the economy which ended up in the hands of private banks and VCs who just used to buy back shares and make themselves richer. The last decade has produced a lot of business that just borrowed and expanded with no real revenue streams. A massive credit bubble. Then pandemic came and then war came. Supply chain disruptions of a hyper globalised world. Price rise. Inflation. Now to check that, raising rates.
@rbreich and Feds hope (so do all central banks everywhere) that raising rates will bring the inflation down. Effectively it kills small businesses and more unemployment. In effect, Fed is between a rock and a hard place, with nowhere to run. This is the crisis of capitalism playing out right infront of our eyes. And the attempts are merely to plug the leak, rather than making systemic changes to how our societies should produce, trade and consume.
@rbreich We should raise taxes on the rich to slow the economy.
@rbreich it places the burden of fighting inflation on the unemployed. Raising interest rates is a crude instrument that only hurts 1 group - the poor. Powell tries to justify it by claiming inflation will inconvenience workers. Wow, "inconvenience". Screw those that will starve or become homeless. We need to protect people with secure jobs & credit.
It doesn't inconvenience me in the least, mainly because I have no loans, don't pay rent & I can adjust my spending accordingly.