The decline of the unions is why our manufacturing base was shipped out, good-paying jobs disappeared, the country became dependent on imports for even the simplest things like doornails, people had to resort to multiple jobs and gig jobs and credit to make ends meet, and on and on and on.
And we have had PLENTY of inflation – rents, home prices, health insurance, college education…
Well, all that was fine and dandy and was called the “new normal” because it was the rich that got richer and richer and became morbidly rich. But give the working class a little wage increase, and OMG, the world is going to die because of inflation?! Get outta here!
The workers can also purchase the products that they produce. Once unions were destroyed and the wages were cut, the only way to cope is to get into debt and more debt. American people are now the most indebted in the world by far. The wages that workers earned would serve to sustain their lives and grow the economy. The profits that the job-killing corporatists make, in contrast, only serve to further destroy lives and bloat the asset markets.
StukiMoi
2 years ago
Inflation is nothing, whatsoever, other than the redistribution of wealth and influence: From productive people capable of creating actual value. To connected leeches incapable of creating anything.
How can it possibly be surprising that connected leeches who produce nothing but expect to live in splendor off of what productive people produce, want more of it?
What’s sad, and destructive for America and The West, is that the productives who are getting robbed, still remain so pliantly indoctrinated that they go along with the robbery.
The leeches will continue to push for ever more redistribution, in their direction, for as long as they can. Government, central bank and arbitrary “legal” (the three pillars of the totalitarian state) redistribution is, after all, where all their wealth and power comes from. It’s up to those being robbed to put their foot down.
obstruksion
2 years ago
Have you completely abandoned your definition of “inflation”?
Jerry
2 years ago
I haven’t seen it reported that solar tax credits for Build Back Better would only apply if solar panels are union made – Mish or anyone else can you provide a link? It is my understanding the current Federal tax credits for solar which do not require anything be union made will remain in effect at 26% through the end of 2022 – they have nothing to do with Build Back Better – am I missing something or will BBB solar tax credits replace the current Federal renewable energy tax credits? Thanks
Carl_R
2 years ago
There are only a few possible answers to inflation. One is an economic downturn. A second is to decrease government spending, but that can lead to the economic downturn from option #1, as well. A third is to chase it, trying to get wages to rise as fast as inflation, a solution which can lead to even more inflation. A fourth is to ignore it, and just let it eat into the standard of living. I suppose I could list an option 5, “WIN” (Whip Inflation Now), i.e. trying to jawbone inflation now, with or without wage-price freezes, which would be just as bad an idea today as it was in the 1970’s.
In 1974, Ford chose option #5. Carter opted for #2 and #4. Reagan chose #1. Biden seems to be in favor of #3.
If Canada doesn’t respond with this, then the Canadian auto industry will be destroyed since 90% of the cars made in Canada go to the US and there is no way they can compete with subsidized US vehicles.
Luckily no one thinks this has any chance of passing in the BBB bill (if that even passes).
amalagoli
2 years ago
Real wages have not grown in years while CEOs have been making billions and not creating one ounce of real growth. Bought back shares and cut costs just to pay more dividends. Not one penny invested in true innovation and productivity growth. They have outsourced all the could (have you tried to speak to a human customer representative lately?). Now it is the Unions’ fault if people would like a decent standard of living? True, there have been excesses, but to just focus on the negatives of Unions is lame when looking the negatives of our Wall Street economy. People are tired of hearing how great a “market economy” we have when it only benefits the rich.
The health of economy is not measured by how high the SP500 is, even though everybody thinks that way.
Absurd. It’s not only CEOs who have benefitted. There are tens of millions of good paying jobs in the US. Otherwise how can house prices keep going up? if all the money went to CEOs, the they would be the only home buyers.
Well, “Who’s outbidding you by tens of thousands of dollars for that home of your dreams? A hedge fund”.
Eddie_T
2 years ago
I don’t think it’s hard to understand Biden’s perspective. He wants to get the working class back into the Democratic Party. I just think that’s delusional thinking on a number of fronts. It simply won’t happen.
Once again, I’ll state my thesis that we could have a bubble pop and see some asset deflation….but longer term? Inflation is SO baked into this cake. Energy, food, most goods and services.
Let me be the first to suggest here that higher interest rates will be very supportive of a higher dollar….and therefore higher US equity prices…..maybe not in the very short run…but once a little blood is let, you might be surprised.
The Democrats have a coalition of a variety of different groups, with different goals and opinions. Sometimes it is hard to find a policy that pleases all of them.,
Dems should be worried about Hispanic voters. Their policies used to attract black voters don’t work as well with Hispanics. Hispanics want to earn a living and have jobs available. They look at BLM, see their neighborhoods destroyed and get no benefit from it. It’s BLM, not HLM.
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And we have had PLENTY of inflation – rents, home prices, health insurance, college education…
Well, all that was fine and dandy and was called the “new normal” because it was the rich that got richer and richer and became morbidly rich. But give the working class a little wage increase, and OMG, the world is going to die because of inflation?! Get outta here!
The workers can also purchase the products that they produce. Once unions were destroyed and the wages were cut, the only way to cope is to get into debt and more debt. American people are now the most indebted in the world by far. The wages that workers earned would serve to sustain their lives and grow the economy. The profits that the job-killing corporatists make, in contrast, only serve to further destroy lives and bloat the asset markets.