Viewing a single comment thread. View all comments

plumquat t1_jdku1xq wrote

The fed is raising interest rates to trigger a recession to lower inflation. They made a power point, everyone clapped. The news is telling us to eat our medicine.

The other way to lower inflation is to raise taxes on the rich.


Fake_William_Shatner t1_jdrt48x wrote

>“ The other way to lower inflation is to raise taxes on the rich.”

It’s funny how you and I know a simple slam dunk solution but it’s these people spouting complex spells of finance who get to talk to the press or make the decisions.

I can see the meeting now; “Sure, raising taxes would reduce spending by the wealthy, and raises for the poor would definitely increase spending if we go into a recession— but is their any OTHER way to deal with this that doesn’t hurt the rich or help the poor— think Dammit—THINK!”


Resident-Librarian40 t1_jdmj9ew wrote

Inflation at this point is all fake. All those companies that hiked costs saw huge profits. Even egg prices were artificially inflated.


Fake_William_Shatner t1_jdruhm3 wrote

Maybe not the eggs. But, it was everything that got manipulated. Even something simple like soda nearly doubled. Even if the price of energy doubles and maybe the price of their ingredients (it didn’t)— so it goes from 15 cents to 30 cents — where did the other dollar go on the hike of the price of two liters of soda go? Into profits.

There are just a few companies who control most of the goods we consume and they might have a bunch of labels — but they aren’t really in competition. And the grocery stores are merely outlets grabbing pennies.

Buying a meal at a drive through now costs the same as a meal at a restaurant— how do they manage not to coordinate a higher fee of McDonalds and Burger King are struggling?

And the idiots who think wages going up 3 percent caused a 20% rise in cost of goods sold — well, they are the perfect consumers, the product of extensive training in economics by the US corporate media.


Fake_William_Shatner t1_jdvd4d9 wrote

Shit! I was going to say that Eggs were the one exception to prove the rule, because I didn't want to sound absolutist. So .... damn, there isn't ANYTHING that wasn't just jacked up because the cartels like money?

Even those gas prices -- we never saw when Oil costed more per barrel years ago, and they didn't get that gas tax taken off -- so, it was mostly a money grab.

The fact that it is also happening around the world just means these multinationals are coordinating. They just raise prices, the media points to a bunch of things, and the fact that the people who raised the prices own most of the media doesn't get on the evening news. The masses go "baaa baaa" and blame the fact that they had the temerity to ask for a raise after over a decade.


FNLN_taken t1_jdotkb7 wrote

The fed can't raise taxes. They have said, pretty explicitly, "If noone else is going to do anything useful, we are going to have to do what we can".

Biden has proposed increasing capital gains tax, but for one congress moves too slow, and secondly the republicans will block it anyways.

Raising interest rates does affect large borrowers more, and most large-scale transactions are debt financed. It's not ideal for specific problems, like the housing market, but it will achieve the goal of cooling the economy.


[deleted] t1_jdpe2pk wrote



FNLN_taken t1_jdpeypn wrote

I'm just another wage slave who's spending power has decreased by 10% in half a year, I am just going off what can be learned from what economists say and what seems reasonable to expect from past experiences. Pretty much just as you do.

I just don't see, specifically regarding the fed rates, what else they could have done; because pumping trillions more into the banks is exactly what ended us up here.


Fake_William_Shatner t1_jdrutla wrote

The Fed— the outfit that is always run by the most successful crooks at Goldman Sachs. Oh darn, they can’t raise taxes but they can increase interest rates— that did not stop the buying of property because those big investors don’t need to take out loans.

They are either clueless or part of the problem.


IhoujinDesu t1_je9aopk wrote

Sure the government can raise taxes, as they should for numerous reasons. But The Federal Reserve is not controlled by the government. They will do their own thing.


EspHack t1_jdl83d2 wrote

and the rich throw taxes back at the poor with more inflated stuff


wait till you realize how nonsensical this argument is, it is the rich that tax and rule you


plumquat t1_jdlcyls wrote

progressive taxation?


EspHack t1_jdo2p4p wrote

let me try again

if you're powerful enough to make rich people pay, then you're also the rich people you're trying to tax

money and power are the same thing, its not a just a catchy phrase, money buys politics and politics makes money


plumquat t1_jdo79f3 wrote

Right we have to recapture the IRS and a majority in Congress, I understand that. That's why the fed is creating a recession because we cant lower inflation with an act of Congress to raise taxes on the wealthy because they're already owned.


Fake_William_Shatner t1_jdrvbp4 wrote

The Fed works for the bankers and Wall Street. All of their moves at all times are for the benefit of the .1%. That’s it. Same with the FBI.

The only time you get Justice is when someone following the rules doesn’t know any better and thought the lies they were told about justice were real.