@@Zach-ju5vi yea the government -under trump - mandated a shutdown to keep people alive. HE (trump) then tried to make nice with workers by giving away an additional $600 a week to all workers unemployed during this time, instead of doing it right by mandating that it be like 100% of your gross pay UP TO $600. And yes the democrats continued this same policy so they are just as guilty. THIS DOES NOT JUSTIFY what corporate America is doing to consumers in the aftermath. This i continued gouging and nothing short of robbery. I say quit buying stuff you don't need and let them fail
@@Zach-ju5vi It's the usual delusional ,unoriginal, sedative tripe we all ignore from this channels sleep inducing troll, Ambien Zach. Again you are repeating right wing media talking points like a good little corporate stooge. You're a real Zachoff. hahaha
@@davidh4129 You sound like the well known deluded troll, Zack. Is that you Zachoff or just another poorly educated, deplorable troll with Reich derangement syndrome? hahaha
I'm confused how it's legal for businesses to not pay livable wages, which in turn means those employees need Government assistance to live, meanwhile businesses pay huge salaries & bonuses to execs. and board members and stockholders. So the worker paying taxes but needs help has basically his taxes paying for the execs. etc. Everything is wrong about this.
The executives and CEO's of any company will continue to live very well and go on expensive vacations. Meanwhile, they are cutting the number of hours for workers who now don't make enough to live decently. Many are losing their homes and food banks don't have enough to feed the number who need assistance.
@@imperialmotoring3789 I have no way to 'take away their money'. Congress can raise taxes on the wealthy and close corporate loopholes so that they all pay their fair share. It's the Trump tax cuts that gives them more money than they should get. Corporations such as Amazon made billions in profit and paid next to nothing in taxes. Trump paid no federal taxes for two years. Is this acceptable behavior?
Business do pay a livable wage. Your stupid parratted talking points are easily disprovable. Its also pretty clear you don't understand how business or economics works.
The "wage price spiral" was something I heard more about when people started wondering where all of their purchasing power had gone. It's been 20-30 years since most of us had "cost of living" increases as a standard part of our contracts. So essentially we're 20-30 years BEHIND where our purchasing power should be. Seems like we've been getting an inflation decrease in salary every year doesn't it?
We're seeing the result of "Trickle Down", or as I call it "Tinkle On" economics. It's taken decades to get this bad. It will take a while to fix. It's a distribution problem. We need to pull some of the "free" money that corp's were given and seriously reduce taxes on the lower and middle classes. Keeps the money in balance and increases demand for goods and services.
For your information, corporations do not pay taxes..Taxes are just another cost of doing business that gets passed on to the customer in higher prices for you and me, And as a bonus, we get to pay more in sales taxes. The only path to lower taxes for the middle class is to demand less government and less government spending.
I am a carpenter. I do work for a man who owns a clothing manufacturing business. During Covid he reduced to skeleton crew and said he was making more money from that. Now he says he has risen prices to offset the slowed sales during Covid. A little entitlement there?
Yeah likewise I know a lot of people that work in restaurants and they have all said the local restaurants actually made MORE profit than they had in a long time during covid. Now businesses are working skeleton crews and raising prices and calling it inflation and blaming the economy.
@@timhicks2866 I agree that is part of the problem. No wage increases, yet massive amounts of inflation that crushes the average working man. However, you can increase your abilities. You can seek other employment at another company. This mess that we the people have allowed to happen can only be fixed by we the people.
@@JMyoutube1 I'm self-employed, since 1982. It has been a series of cycles absorbing cost increases until I no longer can. Keeping costs fair is part of my philosophy. Greed is not.
It is actually exasperating to see politicians, media and even economists treat inflation as if it were an inevitable occurrence when there is money infused into the economy, whether by higher wages or by the government. Inflation is the result of decisions by businesses, some of which may have good reasons for raising prices, many do not not. Prices are not rising, they have no agency, prices are being raised. My wife and I have a small farm, produce organic vegetables and eggs, but we have not raised our prices, even though our input cost have risen. We take our customers into consideration, of course we have no shareholders or a CEO.
If you are able to continue without raising your prices, then you are either very wealthy or your profit margins were already too high. In time, you will be forced to either raise your prices or terminate business operations.
@@larryaustin3193 Neither of your assumptions are correct. There are times when a business has to be able to do with smaller profit margins when it wants to keep its customer base. I once asked an Amish business man from whom we had bought a hoop house how it came that he could sell these buildings so cheaply. He replied " I do not want to get rich and so I do not have to get rich from selling to one person". Simply, I liked that attitude. I am not saying that we would never raise our prices, but one does not have to follow the mindset that exploits inflation talk for one's own immediate benefit.
I agree that most of the inflation is false. Corporations that are almost monopolies are just raising prices to maximize profits. (I just heard that the two grocery chains that dominate the nation are being allowed to merge. Less choice means they have less competition. Less competition means price falls away as an inhibition to price. Worse, there are less options for the workforce to turn to if they are underpaid, dissatisfied, or shunned. Thank your government for deregulation and prepare for homelessness or slavery.
@@klauskarbaumer6302 I stand corrected... "Too high" is a subjective term. But, your margins are obviously high enough that you are comfortable absorbing the cost increases, at least for a while. Corporations are no different. They will absorb higher costs if they must but, just like you, there is a point at which they must turn an acceptable (also subjective) profit or terminate operations. Inflation is the result of a rapid increase in the money available to purchase goods and services. Wage and price increases are a symptom of inflation, not the root cause.
The only way to stop this is to refuse to buy things. Buy the absolute minimum. Reuse everything. Give away your unused items to others that need them instead of tossing them. Keep your old car and use it like a badge of honor. Wear worn out clothes. Do whatever you can to tell them to shove off. We need a materialism strike.
That not a bad idea, but I heard it said that if enough Americans stopped driving or stopped working for one day (general strike), we would have the government by the reigns. If you compare the two models (materialism strike vs general strike) what are your thoughts?
I work at a big box retailer and I see the cost of nearly every item rise due to corporate greed induced inflation. The cost of meat is off the charts.
This whole spate of inflation greed is possibly the greatest argument for price regulation we could ask for. Conservatives, who CEOs almost ALWAYS align with, shot their mantra of deregulation in the foot with this little cash grab.
Robert Reich....an apologist for the jew banker owned Federal Reserve...why? because he's part of that TRIBE..... They are the ones that control everything.including your inflation ..... but if say anything about it..you're ANTI-SEMITIC
Here in Australia, Inflation exploded, the government and unions said " let's raise the minimum wage", the business council of Australia ( read the big business union ) screamed " raising the minimum wage is what is driving the inflation ". A few people then pointed out that wage growth is and has been stagnant of a decade so it isn't wage growth, now what could it be? greed? The business council went into hiding for a couple of weeks, they are back now blaming those lazy workers again.
Hopefully Labor won't bend to them. At least some in the Labor Party know what it is to be working class, not born with so many silver spoons stuffed in their mouths they can barely squeeze another in. Did you see in Victoria the LNP got just over 30% of the vote, and because their voters are getting old and dying it's expected to be less next election? They are now trying to find lies to entice Millennials who have had the audacity to not get conservative as they got older. (Apparently Xgen don't exist, again.)
They could cut taxes and stop spending foolishly. That way the people who actually earned the money could try to improve their lives and also speed up productivity and create more jobs. Yeah I got so sick and tired of listening to George W Bush, for eight years, calling Americans lazy and the reason he wasn’t going to do anything about the border. We weren’t too lazy to fight his stupid wars in the gulf. No Iraqi has ever called me lazy
@@Navy35 it depends where they cut taxes. It's the low wage workers who need the tax cuts. The rich need to be taxed more, and those taxes put into infrastructure, construction, and public services, which will give grounds for more jobs and business growth.
@@Zach-ju5vi Poor little sick Zachoff is in a full blown mental episode over anyone who agrees with the great professor Reich's spot on videos. Seek help soon..
@@BenotzJoe I disagree, Joe. In Australia, we provide unemployment benefits for jobless people and disability pensions for the disabled. The government also pays teachers, nurses and other health workers. The people receiving those wages can then buy goods in shops, thus supporting those businesses. Some of them buy cars or travel around as tourists. All of that stimulates the economy. This shows how government spending benefits private businesses.
When I studied economics, the first thing I learned is inflation is baked into the economy. In 1970, my first house cost $20k. It's now valued about $250k. That happened over a period of years. That's regular inflation.
People living paycheck to paycheck generally don't spend money on stuff that makes the economy go brrr. They're too busy trying to survive. So actually, lower wages may be good for that particular employer, but make the economy implode.
Oh really? Buying groceries and paying bills doesn't make the economy hum? Has it occurred to you that maybe a raise will enable them to more easily pay their bills plus leave a bit over to save or even buy more stuff?
It would definitely help to pass a law on federal minimum wage. Force it to be the average living wage of each state. This would stop this terrible cycle of waiting for lawmakers to help people and put it in the hands of people who are only looking at the numbers.
Simple solution. Enforce our immigration laws! The government is turning a blind eye to this issue because the corporate lobbyists pay them to. Supply and demand- whenever you have an over abundance of anything you cheapen it. If there is more workers than jobs, why would corporations pay “ YOU “ more than the going rate. The time you pass a “ livable wage bill “ and it slowly becomes the law , the cost of living went up. If you just limit the amount of people ( job seekers) into the country that will be competing with Americans ( mostly the most vulnerable and POC ) then companies will be forced to raise wages or outsource or use automation. Besides if we want to reduce our carbon footprints we can’t have unlimited open borders.
...and then the companies would use the minimum wage increase as an excuse to jack up prices, making increasing the minimum wage completely pointless. Not that they couldn't eat the very brief loss in profit for massive later gains now that everybody is able to afford to buy more, but they would just love to have the excuse to jack up prices. Then at the end of it all when the law is repealed and the minimum wage goes back down... the companies won't lower the prices since we've already proven we're willing to pay that ridiculous amount.
The fed has accepted the model of single family homes being owned by corporate entities as rental units as the new normal. When in fact corporate 'for rent' ownership has always been an outlier in the housing market. One of the biggest problems in my community (Camden county New Jersey) is the municipal regulations that have been added to creating more multi family rental units. Local government has made the 'corporate rental' a financially attractive alternative.
The only thing that would cause less demand for housing is for there to be less people who need it, and I don't understand how Powell can imagine that raising interest rates will change that! The higher interest rates are killing construction, and causing more homelessness.
In the last twenty years or so, we have seen prices soar in the areas of housing, energy, food, higher education and medical care. No amount of price crediting or wage increases will fully offset the total of these imbalances. GOVERNMENT must identify and find ways to both account for assistances and also make the necessary offsets. THIS is a part of why we need government at all ! ALL citizens must work & produce. Government MUST make sure there is sufficient balance to justify the system of economics we live with, year in and year out. Currently, this balance is compromised by greed and lack of regulation
@@agrendae Of coarse it's driven by corporate greed. Your comment triggered this channels corporate bootlicking troll Zach who has Reich derangement syndrome. We all laugh at his deluded babble..
@@petercalderwood2876 Zach is this channels corporate bootlicker who is incapable of paying attention to anyone except the voices in his head. He is very sick and can't control his psychosis..
@@Zach-ju5vi YAWN....ZZZZzzzz.... More of the same sedative babble we all expect from this channels cure for insomnia. Our resident corporate bootlicker, Ambien Zach..
Raising interest rates does not help stop inflation. It only helps the banks. People need to buy things. With such low wages for a huge number of people, that stops people from buying things and that gets people unemployed. - Years ago when there was a huge surplus of something the cost went down. We haven't seen costs go down in decades. The costs are only going up and up and up. They need to lower the interest rates, not increase them. They should not stop people from buying things because the costs are so outrageous plus the high interest rates on top of that. That only helps the rich. I am very angry with Yellen and Powell. I hope Joe takes them, out of office. Their ways - the old fashioned ways - just does not work anymore. Unfortunately, everything is GREED and that needs to STOP!
Raising interest rates slows inflation TEMPORARILY, then as people can't buy even the basics, it crashes the economy into recession. Raising interest rates has far more effect on those who have already bought something (house, car, whatever) than those who have not already committed to it. It also drives rents up as landlords seek to cover the extra costs and those who don't have loans see an opportunity to keep increasing with the market. That also significantly drives inflation. At the moment the economy is not overheating, just the corporate profits are, which means the wealthy are overheating, not everyone. The lower end of the socio-economic scale is cooling, but that's the end interest rate rises will affect first.
@@Zach-ju5vi Look who's back everyone it's this channels corporate bootlicking, MAGA sycophant, deluded troll spewing his typical verbal diarrhea. He is a real Zachoff..
Agreed. That's why even when I disagree with him I absolutely love and respect where his heart is and what he's trying to do. It's just sad to see him spreading false information at times.
The guest is totally ignorant of the causes of price inflation. Our price inflation is not caused by greedy producers. Price inflation is caused by monetary inflation (raising the ratio of money in circulation to amount of goods and services in th marketplace (GDP). It's extremely discouraging that Reich doesn't clue her in.
I'm glad many people get it right and say it's corporate greed that is raising prices but the majority of Americans stay clueless. In TX schools young adults are taught that capitalism is good and works for Americans. So sad my taxes pay for this BS
As a former community organizer: I can testify that building relationships in close-door meetings with other community organizers, separate from the actual community: doesn't solve a darn thing. But it does give optimism and meaning to the delusional. And this helps to create a more positive-sounding empty rhetoric of accomplishment that helps give the appearance that you actually have the courage to cause real change.
We need to stop giving super PACs tax exempt status the money given to these people is quid pro quo for government behavior that benefits the people that contribute. Tax these operations that are actually for profit organizations
This is how Americans gains the same working class consciousness as other countries across the pond. Keep talking about our power. This country is ours and we're taking it back.
Companies are always looking to increase profits, and "inflation" is the perfect excuse to do just that by raising prices and then throwing their hands in the air and say, "Well, gee whiz. We HAVE to raise these prices because reasons!" Never mind that they're not just raising prices to cover additional operating costs: Their net profits have more than doubled after covering those costs. It's a bunch of BS.
Robert Reich, do you know what we need? We need "...a government of the people, for the people, by the people." What we have right now is a "...government owned by the corporations, dictated by corporate lackeys, and manipulated by any amount of money thrown into the ring,"
Regarding housing: to make it cheaper, increase supply. Look at ordinances driven by people who already own lots of property that prevent housing from being built, which drives up prices. Look at tax loopholes that allow people who already own property to avoid paying fair property taxes as the value of their assets goes up.
Inflation appears to be a circular phenomenon. A. Shrugs his shoulders and says what was I supposed to do? B raised his prices so I had no choice, I had to raise mine...C says A and B raised their prices so I had to raise mine...D, E, and F say the same thing. It goes round and round and never stops. Everyone points the finger at someone else...
What is truly harmful to humanity is the poverty trap. Thanks Professor Reich and Solana Rice (for your activism). There is an intense need to have the poverty line corrected. It impacts everything from how much taxes we pay, a realistic minimum wage, fair healthcare costs & how much housing and college grants & subsidies we become eligible to receive. In any case, the bottom line is the stronger the working & middle classes are, the bolder the lift of the entire economy bearing down on their backs and shoulders will be. Why make wages minimum, make them relevant (relevant wages are wages that reflect & respect the actual cost of rent & mortgage rates & a healthy-basic cost of living, spending & savings). One radical "tool" I offer is that government funding be directed to business owners to help them pay this wage (this seems like a win-win for most Americans). Please advocate to correct the poverty line to reflect actual, humane cost of living expenses (make wages relevant & support business owners to pay their workers properly. Please if you find any virtue in these things, please do strongly advocate. I am deeply appreciative for your work, advocacy & compassion towards economic despair, disparities, and struggle, as well for your generosity through your teachings for the masses and the sharing of your priceless time. Please let me share back your thoughts. Thank you truly th-cam.com/video/D9N7QaIOkG8/w-d-xo.html
This inflation is like the 1970s. Then they had an oil crisis with OPEC. But the real day to day inflation was caused by classic Corporate greed. Inflation came to end when newer companies decided not to play by the rules of the other established ones by selling products a little cheaper then the others. This included everything from Fast food to toys and cars . The Japanese took great advantage of American Corporate greed. It took some a decade to get it.
why is it so hard to implement price limits for basic food products? it's the states obligation to protect the common person, the consumer, not the mega corporations.
The 18-29 age group definitely needs to get organized so they can boost their voter turnout much higher than the 27% they had during the 2022 midterms. If you want a seat at the leadership table so you can get the future you want, you have to earn it.
Of course corporations are talking about raising prices when we have a large child tax credit in place. When you are literally creating new demand with this tax credit, that will raise prices. However there is one thing I can agree with you guys on: it’s that wages are not driving inflation.
In a dynamic marketplace when corporations get too greedy it’s supposed to provide openings for competition. Are they not paying a living wage? Then it should be trivial for a competitor to lure workers away. Over-charging for their product? Again, trivial to produce the same stuff for lower cost. If you can stomach smaller profits then you should be able to shut out greedy corporations. And, in theory, you’ll be fighting inflation.
If inflation continues at this rate we’ll all be poor: then no one can buy what corporations are selling: already many elders are losing homes they’ve worked hard for but now can’t afford to keep up & having had to borrow to fix can’t reduce debt because of interest rate hikes which are making many middle class people poor & even homeless
I wonder what the end game is? Capitalism cannot profit or survive when it has few consumers. Could this be one of the reasons for this drastic inflation. Corporations and Main Street are driving up prices to make up for fewer consumers? Something is going to implode sooner or later bc people are going to die of malnutrition for lack of affordable healthy food and living on the streets. Eventually we will see hordes of people with their pitchfork heading to corporate headquarters or congress.
No, inflation isn't helped by changing the exact same the yearly child tax credit to a monthly child tax credit. What works better is unionizing and demanding better pay out of the profits of our labor. Keeping an eye on corporations doesn't change what they pay their employees vs CEOs & shareholders. Unionize! Take power from the corporate owners and make the employees VALUED parts of the companies by promoting unions.
When you raise the minimum wage, all prices rise to match and make a living wage of 15.00, when the minimum was 8.00 the new poverty wage. Companies will not sacrifice profits to pay more. It also puts people who were making a living wage, back at poverty wages as companies won’t match the increase for those making over the minimum. Just raising the minimum does absolutely nothing to help anyone. It just gives the illusion of more money while everything costs more.
We won't have Corporate greed if we had UNONS THATS WHAT CAUSED THE BALANCE but people believe unions are bad they're only bad when they get out of control like the UAW. That's one of the few things that I disagree on Reagan killing the air traffic controller Union was a bad thing it'll always be a bad thing when unions do not survive unions are what caused the balance of power for corporations and people that work at corporations,
Expert Robert Reich states, "Their (Americans) wages are not keeping up with prices." So, true. Corporate America needs to replace greed with rational self-interest. Their profits in 2022 are through the roof! Shop for the best price for goods and services if a business charges too high; competition is a good thing. Merry Christmas!
Be careful with that. Sometimes it's the corporations trying to undermine the independents. The two major grocery chains in my state (in Australia) started selling roast chickens cheap, did so for about 6 months. Once a lot of the small (what Americans call "Mom and Pop") hot chicken stores went broke, the grocery stores put their prices up about 25%. The thing is the grocery stores don't even sell all the extras like hot chips, roast vegies, chicken and gravy sandwiches, etc. We've simply lost all that. A better plan is to shop from locally owned stores, support the stores that are not trying to monopolise the market, and keep choices open.
I am a big fan of tour Channel and your philosophies in general. What you are saying is true, inflation is not cause by wage hikes, but some person sitting there are saying that repeatedly is not enough to convince people. Please do a better video on the true cause of inflation, isn't the interest rate that's charged by banks is the reason for inflation?
@@davidh4129 What, stealing from the thieves, is wrong?? They're screwing us ALL, over the place. Give 'em a taste, of their own medicine. The RepubliCONs own ALL, the food manufacturers🤨.
It is not about "corporations"... the major problem in current economic system is that the "liquididy" is moving from the consumer to financial market, where it aggregates in enormous emounts. Currently, the stock market is times more than consumer market. As we know, the stock market is owned by rich minority, so when profits from financial market are "invested" in consumer market (like real estate), the amount of "liquidity" is so high, that nothing can beat those sums and ofcourse, the inflation rises. And inflation hits the poor harder. So there is no surprice that consumer market is monopolizing and inflation is rising. And it is government that is responsible, that sets the rules. Also, resources are limited, so with growing population there are simply no means for everyone to have high standards of living.
It is obvious that big Corporations and money are controlling the economy. A more population friendly economy is blocked at almost every turn by GOP supporters of big money/themselves.
Yes, it is inflation. In 2021, I was able to purchase a carton of 18 extra large eggs at Walmart for $2.48. Now, those same eggs cost $6.22. Why? Why so much? My local HEB is even worse. Those same eggs at HEB cost $6.47. Why? Price gouging. We are being price gouged to death. Corporations are making record profits. Like the saying goes, “Follow the money.” Whoever gets the money is the one at fault.
This is why we need elected officials to represent the people, not corporations. The corporations have their own representatives. This is the special interests in government that Dwight D. Eisenhower warned about in his farewell speech as being this biggest threat to democracy and the undoing of the great American experiment.
corporations should be barred from raising their prices by more than 1% per year. boycott big corporations as much as possible, support small, local businesses; keep the greed local.
They would have to tie gdp and ubd basic unconditional dividend for all Amercians W corporations to keep with up.. if we all got 50% of the GDP and dividend it then we would all get about 50k per year. Robotics would need to be supported as well.
We need to create the initiative process in all states some states have this and some cities so if you have this find out and look up how to get something on a ballot with a petition.
@@RavenclawFtW3295 NO. Listen well, idiot. My company charges the customer 60$ per hour of my labor. I only get 23 of that. The company makes a profit by keeping what is left after they pay for the workers comp insurance which comes to a WHOPPING 30$ per hour of my labor. I make 23 the insurance makes 30 and the company makes 7$ profit off of every hour I work. Insurance used to be 10$ per DAY. Now it is 15-30$ PER HOUR!!! ARE YOU DONE BEING A MORON???
I agree that the main cause of inflation are corporations but the real issue is how the corporate media prevent what you are saying from getting on the air. Lucky we have social media but for how long.
I just stop buying absolutely any extras no eating out no movies no concerts no sports events only watch free TV do not pay for subscriptions lowered my heat and put on a sweater lower lower my air conditioning in the summer or not use it at all go to all free food giveaways instead of food shopping and I get my clothes off of by nothing group or thrift stores it's what I'm doing now so I can have a decent retirement in the future just do not spend absolutely anything I do not have to
In fact a strong argument can be made to helicopter money to people on the condition they pay down debt. That in itself would clear away tons of overhead and “shrink the money supply” better than interest rates.
I once was young and didn't take the time to understand the interest rates and penalties of the Credit Card Industry; I finally reached a point where I would have to make some tuff choices in order to dig myself out of my poor financial decisions; I certainly learned a valuable lesson that has benefited me throughout the years. It would be better for all, if those making poor choices would learn by their mistakes and be responsible to own their debt. If they would begin to live the life of a minimalist, they could dig themselves out and it would not be necessary for the Federal Government to print more Counterfeit $s, our Nations Debt might begin to shrink and as a bonus, there would be Environmental Conservation. Then, we should get back to teaching Reading, Writing and Arithmetic rather than Social Justice debatable cultural issues, allowing our younger generations to have the tools for making better choices in their careers.
I am curious, I am conscious I live in my own media bubble, but is it just my feeling, or are Americans are getting more and more concerned and fed up by, what I could quickly over-simplify as, capitalist oppression?
I know people love to trash Powell but imo the case for inflation being transatoy. A big chunk was caused by supply chain issues that should have been solved quicker than it was. 7/16" OSB hit $50/a sheet and is now $11 which is lower than pre-covid. Yes, companies have keep raising prices because Americans have kept buying it. If Americans are willing to keep paying $5 for something that was $1 of course the company isn't going to lower the price. If Americans stop, the company will lower the price until there are enough buyers to support their production. I see carts at WalMart full of crap while the shoppers complain about high prices. Silly. 3:40 "No where in the US can a person on min wage afford an apartment." Duh. That has never been possible. The goal was never to have a min wage career. When I earned min wage I shared an apartment. Yup, that's right. Millions of years ago humans shared a living space. Back then, before electricity existed, there was no social media to tell us we were entitled to our own place on a min wage. We were so dumb back then we thought the only way to better our lifestyle was to learn a more valuable skill than pouring coffee or pushing products over a scanner. Inflation is caused in no small part by moronic thinking. If you don't like the price of fuel...stop driving so much. If you don't like the price of your frozen pizza don't buy it. There are many foods that haven't gone up in price. Fresh green cabbage hasn' gone up a penny in 3 years. Healthier too! But nah, Americans love to buy, buy, buy. I may sound like I;m complaining about morons but nah, I make a great living selling crap to lazy dumb people. They demand it, I provide it, win-win. There's nothing wrong with the wealth gap, but one side is more fun imo.
A little math and basic accounting common sense will let you know that employees wages and corporate income tax rates have nearly zero effect on product (and service) prices. Right from the start, a product is sold for a price, then minus the cost of the product to import/make, then minus all other expenses of the entire company (rent, utilities and such including wages) equals the profit of the company. By this math it is easy to see that the wages of employees is only a fraction of the expenses of the company. So an increase in employees salary only increases the company expenses by a small fraction of the salary raise by percentage. So giving the employees 10% more only increases the expenses of the company by maybe 1%. But that is only 1% of the overhead still not counting the cost of the goods imported. So in a 50% margin product the employees 10% wage increase would only represent 0.5% of the product price. Maybe a bit more for a service company, but often much less for a retail company. And if you just look at front line minimum wage earners instead of everyone up to executive it is way way less. But that is not how companies price products. Products are always priced to maximize profits from sales and overhead costs are never really considered in the math. Pricing is based on a formula of consumer price tolerance vs volume to maximize profit from sales. Then there is a consideration of cost of sales as in maybe increasing the product cost will improve quality and increase consumer price tolerance faster than it reduces demand volume and increase profits. But then companies take the volume sold minus cost of sales to get profit from sales, then see if that profit from sales will pay overhead. If yes run the business if no then close the business or make some different product quality choices to find a better balance of consumer price tolerance vs demand volume. Nowhere in there are employee wages or corporate income tax rates affecting the price of the product. To say that employees wages or corporate tax rates are in the pricing formula would be saying "companies are not currently maximizing profits from sales, but if we increase their payroll or taxes THEN they will be forced to maximize profits from sales!!!" Really, I doubt there is any company not maximizing profit from sales on purpose today just in case taxes go up in the future. And consumers having more spending money increasing demand may have a tiny effect on consumer price tolerance in some industries. But never more than the amount of extra money the consumers have. So you will always be able to buy more stuff with a wage increase even after inflation caused by your wage increase increasing demand. The idea that employee wages and corporate income tax have any significant effect on product prices is 100% fabricated by people who want to pay themselves instead of their employees and pull profits out of the company into their personal wealth with as little tax as possible.
@@Zach-ju5vi you can't devalue a fiat currency you moron. The currency itself has no value. It's the real resources that have the value not the currency.
@@Zach-ju5vi because the government has said that the dollar our unit of account. It is the spending of money that causes inflation. Not how much money is being created. If I have 5 trillion dollars and I take it to Mars how is that possibly going to cause inflation. Carefully targeted spending can lower inflation. It is not the amount of dollars that are being created it is how they are spent
@@Zach-ju5vi well let's do that let's start all over again Zack or whatever the f*** your name is. If I have one trillion dollars put out into the economy the economy being human beings and resources. If there is 1 trillion dollars of goods and services to absorb that spending safely then there is no inflation. If there is two trillion dollars put out into the economy and there is two trillion dollars worth of goods and services real resources available to absorb that spending then there is no inflation. Why is this so difficult for you to understand.
As always:
It ain't Red vs. Blue.
It's the 1% vs. You.
Most Citizens in the United States are the 1% of the world.
Scary ignorance
Time to eliminate, the red maybe 🤔??
true true true
The one percent are entirely red, however
It's not inflation. It's Price gouging. Look at profits. Outrageous!!!
@@Zach-ju5viquit your incessant lying; nobody here is fooled by your rathugliKKKlan lies & propaganda that you attempt to gaslight!
@@Zach-ju5vi yea the government -under trump - mandated a shutdown to keep people alive. HE (trump) then tried to make nice with workers by giving away an additional $600 a week to all workers unemployed during this time, instead of doing it right by mandating that it be like 100% of your gross pay UP TO $600. And yes the democrats continued this same policy so they are just as guilty. THIS DOES NOT JUSTIFY what corporate America is doing to consumers in the aftermath. This i continued gouging and nothing short of robbery. I say quit buying stuff you don't need and let them fail
@@Zach-ju5vi My prediction was accurate that this great, spot on video would trigger this channels corporate bootlicker, little Zach...
@@Zach-ju5vi It's the usual delusional ,unoriginal, sedative tripe we all ignore from this channels sleep inducing troll, Ambien Zach.
Again you are repeating right wing media talking points like a good little corporate stooge. You're a real Zachoff. hahaha
@@davidh4129 You sound like the well known deluded troll, Zack. Is that you Zachoff or just another poorly educated, deplorable troll with Reich derangement syndrome? hahaha
I'm confused how it's legal for businesses to not pay livable wages, which in turn means those employees need Government assistance to live, meanwhile businesses pay huge salaries & bonuses to execs. and board members and stockholders. So the worker paying taxes but needs help has basically his taxes paying for the execs. etc.
Everything is wrong about this.
The executives and CEO's of any company will continue to live very well and go on expensive vacations. Meanwhile, they are cutting the number of hours for workers who now don't make enough to live decently. Many are losing their homes and food banks don't have enough to feed the number who need assistance.
True. Sports stars, movie stars, musicians, news media anchors, alll make much more than we do. Do you have a solution to take away their money?
@@imperialmotoring3789 I have no way to 'take away their money'. Congress can raise taxes on the wealthy and close corporate loopholes so that they all pay their fair share. It's the Trump tax cuts that gives them more money than they should get. Corporations such as Amazon made billions in profit and paid next to nothing in taxes. Trump paid no federal taxes for two years. Is this acceptable behavior?
What is a livable wage?? Does it mean having enough to buy a 52" TV, or to drive a new $30,000 car every 5 years????
Business do pay a livable wage. Your stupid parratted talking points are easily disprovable. Its also pretty clear you don't understand how business or economics works.
The "wage price spiral" was something I heard more about when people started wondering where all of their purchasing power had gone. It's been 20-30 years since most of us had "cost of living" increases as a standard part of our contracts. So essentially we're 20-30 years BEHIND where our purchasing power should be. Seems like we've been getting an inflation decrease in salary every year doesn't it?
We're seeing the result of "Trickle Down", or as I call it "Tinkle On" economics. It's taken decades to get this bad. It will take a while to fix. It's a distribution problem. We need to pull some of the "free" money that corp's were given and seriously reduce taxes on the lower and middle classes. Keeps the money in balance and increases demand for goods and services.
Trickle down is something morons say.
@@Zach-ju5vi Your delusional verbal diarrhea is out of control Zachoff. Seek professional help for this mental condition you poor sick little boy..
For your information, corporations do not pay taxes..Taxes are just another cost of doing business that gets passed on to the customer in higher prices for you and me, And as a bonus, we get to pay more in sales taxes. The only path to lower taxes for the middle class is to demand less government and less government spending.
I am a carpenter. I do work for a man who owns a clothing manufacturing business. During Covid he reduced to skeleton crew and said he was making more money from that. Now he says he has risen prices to offset the slowed sales during Covid. A little entitlement there?
How much have you raised your prices, Tim?
Yeah likewise I know a lot of people that work in restaurants and they have all said the local restaurants actually made MORE profit than they had in a long time during covid. Now businesses are working skeleton crews and raising prices and calling it inflation and blaming the economy.
@@JMyoutube1 They haven't changed. My hourly rate hasn't changed in 15 years
@@timhicks2866 I agree that is part of the problem. No wage increases, yet massive amounts of inflation that crushes the average working man. However, you can increase your abilities. You can seek other employment at another company. This mess that we the people have allowed to happen can only be fixed by we the people.
@@JMyoutube1 I'm self-employed, since 1982. It has been a series of cycles absorbing cost increases until I no longer can. Keeping costs fair is part of my philosophy. Greed is not.
It is actually exasperating to see politicians, media and even economists treat inflation as if it were an inevitable occurrence when there is money infused into the economy, whether by higher wages or by the government. Inflation is the result of decisions by businesses, some of which may have good reasons for raising prices, many do not not. Prices are not rising, they have no agency, prices are being raised. My wife and I have a small farm, produce organic vegetables and eggs, but we have not raised our prices, even though our input cost have risen. We take our customers into consideration, of course we have no shareholders or a CEO.
If you are able to continue without raising your prices, then you are either very wealthy or your profit margins were already too high. In time, you will be forced to either raise your prices or terminate business operations.
@@larryaustin3193 Neither of your assumptions are correct. There are times when a business has to be able to do with smaller profit margins when it wants to keep its customer base. I once asked an Amish business man from whom we had bought a hoop house how it came that he could sell these buildings so cheaply. He replied " I do not want to get rich and so I do not have to get rich from selling to one person". Simply, I liked that attitude. I am not saying that we would never raise our prices, but one does not have to follow the mindset that exploits inflation talk for one's own immediate benefit.
It makes me feel happy that I live in China. 🇨🇳
I agree that most of the inflation is false. Corporations that are almost monopolies are just raising prices to maximize profits. (I just heard that the two grocery chains that dominate the nation are being allowed to merge. Less choice means they have less competition. Less competition means price falls away as an inhibition to price. Worse, there are less options for the workforce to turn to if they are underpaid, dissatisfied, or shunned. Thank your government for deregulation and prepare for homelessness or slavery.
@@klauskarbaumer6302 I stand corrected... "Too high" is a subjective term. But, your margins are obviously high enough that you are comfortable absorbing the cost increases, at least for a while. Corporations are no different. They will absorb higher costs if they must but, just like you, there is a point at which they must turn an acceptable (also subjective) profit or terminate operations. Inflation is the result of a rapid increase in the money available to purchase goods and services. Wage and price increases are a symptom of inflation, not the root cause.
The problem is corporate greed, it’s a cash grab.
Gas prices are down. Are corporations suddenly benevolent?
This shines light on why we need price controls or revenue cap regulations.
Yup!
Price controls don't work and never have worked.
Please take an economics class. Price controls are horribly stupid.
The only way to stop this is to refuse to buy things. Buy the absolute minimum. Reuse everything. Give away your unused items to others that need them instead of tossing them. Keep your old car and use it like a badge of honor. Wear worn out clothes. Do whatever you can to tell them to shove off. We need a materialism strike.
That not a bad idea, but I heard it said that if enough Americans stopped driving or stopped working for one day (general strike), we would have the government by the reigns. If you compare the two models (materialism strike vs general strike) what are your thoughts?
Meanwhile Biden was sending out 'stimulus' checks.
I work at a big box retailer and I see the cost of nearly every item rise due to corporate greed induced inflation. The cost of meat is off the charts.
Considering becoming a vegetarian.
@@petercalderwood2876 fruits and veggies are also off the charts
vegetable costs have gone up too!
@@Zach-ju5vicorporate greed…it’s obvious you side with them to cover your backsides & fat wallet!
@@Zach-ju5vi if production costs have doubled, then why are corporations making record profits this year? Those numbers do not add up.
This whole spate of inflation greed is possibly the greatest argument for price regulation we could ask for.
Conservatives, who CEOs almost ALWAYS align with, shot their mantra of deregulation in the foot with this little cash grab.
Big Government Price Regulation will make many products become unavailable.
@@timmarshall7292 lol
Ya cuz big business is doing so great at it.
Robert Reich....an apologist for the jew banker owned Federal Reserve...why? because he's part of that TRIBE..... They are the ones that control everything.including your inflation ..... but if say anything about it..you're ANTI-SEMITIC
@@timmarshall7292 Don't believe you. We will do it anyway, so we can then Iaugh at you cIowns
Here in Australia, Inflation exploded, the government and unions said " let's raise the minimum wage", the business council of Australia ( read the big business union ) screamed " raising the minimum wage is what is driving the inflation ". A few people then pointed out that wage growth is and has been stagnant of a decade so it isn't wage growth, now what could it be? greed? The business council went into hiding for a couple of weeks, they are back now blaming those lazy workers again.
They went into hiding because they needed to have a meeting about changing their tactics since the public wasn't buying their original line of b.s.
Hopefully Labor won't bend to them. At least some in the Labor Party know what it is to be working class, not born with so many silver spoons stuffed in their mouths they can barely squeeze another in.
Did you see in Victoria the LNP got just over 30% of the vote, and because their voters are getting old and dying it's expected to be less next election? They are now trying to find lies to entice Millennials who have had the audacity to not get conservative as they got older. (Apparently Xgen don't exist, again.)
They could cut taxes and stop spending foolishly. That way the people who actually earned the money could try to improve their lives and also speed up productivity and create more jobs. Yeah I got so sick and tired of listening to George W Bush, for eight years, calling Americans lazy and the reason he wasn’t going to do anything about the border. We weren’t too lazy to fight his stupid wars in the gulf. No Iraqi has ever called me lazy
@@Navy35 You're not paying tax, GET OFF THOSE ROADS, you haven't paid for them.
The stupid spending is to corporate welfare.
@@Navy35 it depends where they cut taxes. It's the low wage workers who need the tax cuts. The rich need to be taxed more, and those taxes put into infrastructure, construction, and public services, which will give grounds for more jobs and business growth.
Wages are not keeping up with rising prices of things, as the big corporations make money in these difficult times.
@@Zach-ju5vi Poor little sick Zachoff is in a full blown mental episode over anyone who agrees with the great professor Reich's spot on videos. Seek help soon..
Government spending creates difficult times.
@@BenotzJoe I disagree, Joe. In Australia, we provide unemployment benefits for jobless people and disability pensions for the disabled. The government also pays teachers, nurses and other health workers. The people receiving those wages can then buy goods in shops, thus supporting those businesses. Some of them buy cars or travel around as tourists. All of that stimulates the economy. This shows how government spending benefits private businesses.
When I studied economics, the first thing I learned is inflation is baked into the economy.
In 1970, my first house cost $20k. It's now valued about $250k. That happened over a period of years. That's regular inflation.
It's unfortunate that I haven't seen things going in the right direction in the 37 years of my life. Hard to be optimistic with that track record.
Try going to Venezuela.
I wonder what happened in 1971...
Corporate greed = inflation.
@@Zach-ju5vi Still here making a fool of yourself huh? You really are a Zachoff..
corporations didn't used to be greedy? really?
People living paycheck to paycheck generally don't spend money on stuff that makes the economy go brrr. They're too busy trying to survive. So actually, lower wages may be good for that particular employer, but make the economy implode.
Oh really? Buying groceries and paying bills doesn't make the economy hum? Has it occurred to you that maybe a raise will enable them to more easily pay their bills plus leave a bit over to save or even buy more stuff?
@@Zach-ju5vi
And for people in general.
@@bullettube9863
It would just cause inflation.
@@johnd6389 WRONG!!!!!
@@bullettube9863
No I'm correct, another stupid fucking leftist who can barely talk, is trying to make an argument. You are the problem.
It would definitely help to pass a law on federal minimum wage. Force it to be the average living wage of each state. This would stop this terrible cycle of waiting for lawmakers to help people and put it in the hands of people who are only looking at the numbers.
Simple solution. Enforce our immigration laws! The government is turning a blind eye to this issue because the corporate lobbyists pay them to. Supply and demand- whenever you have an over abundance of anything you cheapen it. If there is more workers than jobs, why would corporations pay “ YOU “ more than the going rate. The time you pass a “ livable wage bill “ and it slowly becomes the law , the cost of living went up. If you just limit the amount of people ( job seekers) into the country that will be competing with Americans ( mostly the most vulnerable and POC ) then companies will be forced to raise wages or outsource or use automation. Besides if we want to reduce our carbon footprints we can’t have unlimited open borders.
...and then the companies would use the minimum wage increase as an excuse to jack up prices, making increasing the minimum wage completely pointless. Not that they couldn't eat the very brief loss in profit for massive later gains now that everybody is able to afford to buy more, but they would just love to have the excuse to jack up prices. Then at the end of it all when the law is repealed and the minimum wage goes back down... the companies won't lower the prices since we've already proven we're willing to pay that ridiculous amount.
The fed has accepted the model of single family homes being owned by corporate entities as rental units as the new normal. When in fact corporate 'for rent' ownership has always been an outlier in the housing market. One of the biggest problems in my community (Camden county New Jersey) is the municipal regulations that have been added to creating more multi family rental units. Local government has made the 'corporate rental' a financially attractive alternative.
Sad but true
The only thing that would cause less demand for housing is for there to be less people who need it, and I don't understand how Powell can imagine that raising interest rates will change that! The higher interest rates are killing construction, and causing more homelessness.
The higher interest rates are needed to curb inflation. Blame the fed for the boom bust economy.
Take control and do everything you can.
In the last twenty years or so, we have seen prices soar in the areas of housing, energy, food, higher education and medical care. No amount of price crediting or wage increases will fully offset the total of these imbalances. GOVERNMENT must
identify and find ways to both account for assistances and also make the necessary offsets. THIS is a part of why we need government at all ! ALL citizens must work & produce. Government MUST make sure there is sufficient balance to justify the system of economics we live with, year in and year out. Currently, this balance is compromised by greed and lack of regulation
My heating bill just Doubled! My income has not. This is madness and shameful.
@@Zach-ju5vi You're not paying attention.
@@Zach-ju5vi You're not paying attention.
@@Zach-ju5vi Replied to wrong person. Sorry.
@@agrendae Of coarse it's driven by corporate greed. Your comment triggered this channels corporate bootlicking troll Zach who has Reich derangement syndrome. We all laugh at his deluded babble..
@@petercalderwood2876 Zach is this channels corporate bootlicker who is incapable of paying attention to anyone except the voices in his head. He is very sick and can't control his psychosis..
Robert is the realest dude.
@@Zach-ju5vi
Says the propagandist!
Of you are a retard
@@IMPOTUSx2
Not propaganda, reiche is a propagandist, but you are a fragile twat.
@@Zach-ju5vi YAWN....ZZZZzzzz.... More of the same sedative babble we all expect from this channels cure for insomnia. Our resident corporate bootlicker, Ambien Zach..
@@IMPOTUSx2 Zach is the number one corporate bootlicking propagandist who has Reich derangement syndrome. We all laugh at him...
Raising interest rates does not help stop inflation. It only helps the banks. People need to buy things. With such low wages for a huge number of people, that stops people from buying things and that gets people unemployed. - Years ago when there was a huge surplus of something the cost went down. We haven't seen costs go down in decades. The costs are only going up and up and up. They need to lower the interest rates, not increase them. They should not stop people from buying things because the costs are so outrageous plus the high interest rates on top of that. That only helps the rich. I am very angry with Yellen and Powell. I hope Joe takes them, out of office. Their ways - the old fashioned ways - just does not work anymore. Unfortunately, everything is GREED and that needs to STOP!
@@Zach-ju5vi Your Reich derangement is on full display for everyone to laugh at Zachoff. You truly have no shame..
Very well said my friend. You triggered this channels corporate bootlicker Zach who has Reich derangement syndrome. Nice job..
Raising interest rates slows inflation TEMPORARILY, then as people can't buy even the basics, it crashes the economy into recession.
Raising interest rates has far more effect on those who have already bought something (house, car, whatever) than those who have not already committed to it. It also drives rents up as landlords seek to cover the extra costs and those who don't have loans see an opportunity to keep increasing with the market. That also significantly drives inflation.
At the moment the economy is not overheating, just the corporate profits are, which means the wealthy are overheating, not everyone. The lower end of the socio-economic scale is cooling, but that's the end interest rate rises will affect first.
@@fionaanderson5796 Vey well said. You are spot on. Thank you.
@@Zach-ju5vi I see our resident deluded MAGA, deplorable troll was triggered again.......GOOD !!!! What a Zachoff you always prove to be. hahahaha
It is fantastic to see that people see trough the lies and take action.
@@Zach-ju5vi You probably work for GS. :) You are partly right. But consider the insane profits made. The economy is partly dysfunctional.
@@Zach-ju5vi "Teh Gubemint did it, yo". Man, people just never get tired of beating that dead horse. Especially when it's the wrong one.
It is a fantasy to see that people see through the lies and take action.
@@CynthiaSchoenbauer shifting numbers. More people start realizing how we are taken for a ride. You do i guess.
@@Zach-ju5vi Look who's back everyone it's this channels corporate bootlicking, MAGA sycophant, deluded troll spewing his typical verbal diarrhea. He is a real Zachoff..
Integrity is always the number one goal in life and Mr Reich does this exceptionally well
Agreed. That's why even when I disagree with him I absolutely love and respect where his heart is and what he's trying to do. It's just sad to see him spreading false information at times.
Not on this one though. The Fed injects trillions of dollars and we have inflation. Blaming corporations for this is lying.
The guest is totally ignorant of the causes of price inflation. Our price inflation is not caused by greedy producers. Price inflation is caused by monetary inflation (raising the ratio of money in circulation to amount of goods and services in th marketplace (GDP). It's extremely discouraging that Reich doesn't clue her in.
I'm glad many people get it right and say it's corporate greed that is raising prices but the majority of Americans stay clueless. In TX schools young adults are taught that capitalism is good and works for Americans. So sad my taxes pay for this BS
As a former community organizer: I can testify that building relationships in close-door meetings with other community organizers, separate from the actual community: doesn't solve a darn thing. But it does give optimism and meaning to the delusional. And this helps to create a more positive-sounding empty rhetoric of accomplishment that helps give the appearance that you actually have the courage to cause real change.
Humanity loves to do this. Getting together and acting like they're doing something instead of actually doing something.
Where is the FTC? Where is anti trust enforcement? Why are all of these corporations allowed to consolidate and create monopolies?
She is just so beautiful glad to to see her as a beacon of light to the world we live in!!!
What about people on a fixed income?
The 2 of you are great..thanks
We need to stop giving super PACs tax exempt status the money given to these people is quid pro quo for government behavior that benefits the people that contribute. Tax these operations that are actually for profit organizations
This is how Americans gains the same working class consciousness as other countries across the pond. Keep talking about our power. This country is ours and we're taking it back.
Companies are always looking to increase profits, and "inflation" is the perfect excuse to do just that by raising prices and then throwing their hands in the air and say, "Well, gee whiz. We HAVE to raise these prices because reasons!" Never mind that they're not just raising prices to cover additional operating costs: Their net profits have more than doubled after covering those costs. It's a bunch of BS.
I am so enlightened knowing that employees at grocery stores( in her example) believe their wage increase does not cause inflation.
Thank you!❤
No preach. Find actionable steps. Just very excited with nothing real. She is happy someone is paying attention to her.
The very definition of "Supply Side Economics"!!!
How so?
@@delverdesol Surely you jest!?
Robert Reich, do you know what we need? We need "...a government of the people, for the people, by the people." What we have right now is a "...government owned by the corporations, dictated by corporate lackeys, and manipulated by any amount of money thrown into the ring,"
Thank you Robert. Thank you Solana.
Solana is a. delight to listen to. She is intelligent and a great communicator.
Thanks for introducing us to her!
price gouging was part of it (about 1/2), the rest was from the top 10 % of rich spending their COVID wallstreet bonanza. That is the fact.
I am personally 'mad as hell'.
The Golden Rule:
Whoever has the gold makes the rules.
Regarding housing: to make it cheaper, increase supply. Look at ordinances driven by people who already own lots of property that prevent housing from being built, which drives up prices. Look at tax loopholes that allow people who already own property to avoid paying fair property taxes as the value of their assets goes up.
Inflation appears to be a circular phenomenon. A. Shrugs his shoulders and says what was I supposed to do? B raised his prices so I had no choice, I had to raise mine...C says A and B raised their prices so I had to raise mine...D, E, and F say the same thing. It goes round and round and never stops. Everyone points the finger at someone else...
What is truly harmful to humanity is the poverty trap. Thanks Professor Reich and Solana Rice (for your activism). There is an intense need to have the poverty line corrected. It impacts everything from how much taxes we pay, a realistic minimum wage, fair healthcare costs & how much housing and college grants & subsidies we become eligible to receive.
In any case, the bottom line is the stronger the working & middle classes are, the bolder the lift of the entire economy bearing down on their backs and shoulders will be.
Why make wages minimum, make them relevant (relevant wages are wages that reflect & respect the actual cost of rent & mortgage rates & a healthy-basic cost of living, spending & savings).
One radical "tool" I offer is that government funding be directed to business owners to help them pay this wage (this seems like a win-win for most Americans).
Please advocate to correct the poverty line to reflect actual, humane cost of living expenses (make wages relevant & support business owners to pay their workers properly. Please if you find any virtue in these things, please do strongly advocate.
I am deeply appreciative for your work, advocacy & compassion towards economic despair, disparities, and struggle, as well for your generosity through your teachings for the masses and the sharing of your priceless time.
Please let me share back your thoughts.
Thank you truly
th-cam.com/video/D9N7QaIOkG8/w-d-xo.html
We need a windfall tax and price controls.
Muchas gracias Robert !
This inflation is like the 1970s. Then they had an oil crisis with OPEC. But the real day to day inflation was caused by classic Corporate greed.
Inflation came to end when newer companies decided not to play by the rules of the other established ones by selling products a little cheaper then the others. This included everything from Fast food to toys and cars . The Japanese took great advantage of American Corporate greed. It took some a decade to get it.
why is it so hard to implement price limits for basic food products? it's the states obligation to protect the common person, the consumer, not the mega corporations.
Thank you
Preach!! ❤
The 18-29 age group definitely needs to get organized so they can boost their voter turnout much higher than the 27% they had during the 2022 midterms. If you want a seat at the leadership table so you can get the future you want, you have to earn it.
Of course corporations are talking about raising prices when we have a large child tax credit in place. When you are literally creating new demand with this tax credit, that will raise prices. However there is one thing I can agree with you guys on: it’s that wages are not driving inflation.
In a dynamic marketplace when corporations get too greedy it’s supposed to provide openings for competition. Are they not paying a living wage? Then it should be trivial for a competitor to lure workers away. Over-charging for their product? Again, trivial to produce the same stuff for lower cost. If you can stomach smaller profits then you should be able to shut out greedy corporations. And, in theory, you’ll be fighting inflation.
If inflation continues at this rate we’ll all be poor: then no one can buy what corporations are selling: already many elders are losing homes they’ve worked hard for but now can’t afford to keep up & having had to borrow to fix can’t reduce debt because of interest rate hikes which are making many middle class people poor & even homeless
I wonder what the end game is? Capitalism cannot profit or survive when it has few consumers. Could this be one of the reasons for this drastic inflation. Corporations and Main Street are driving up prices to make up for fewer consumers? Something is going to implode sooner or later bc people are going to die of malnutrition for lack of affordable healthy food and living on the streets. Eventually we will see hordes of people with their pitchfork heading to corporate headquarters or congress.
No, inflation isn't helped by changing the exact same the yearly child tax credit to a monthly child tax credit. What works better is unionizing and demanding better pay out of the profits of our labor. Keeping an eye on corporations doesn't change what they pay their employees vs CEOs & shareholders. Unionize! Take power from the corporate owners and make the employees VALUED parts of the companies by promoting unions.
When you raise the minimum wage, all prices rise to match and make a living wage of 15.00, when the minimum was 8.00 the new poverty wage. Companies will not sacrifice profits to pay more. It also puts people who were making a living wage, back at poverty wages as companies won’t match the increase for those making over the minimum. Just raising the minimum does absolutely nothing to help anyone. It just gives the illusion of more money while everything costs more.
First! Love the video Robert!!
We won't have Corporate greed if we had UNONS THATS WHAT CAUSED THE BALANCE but people believe unions are bad they're only bad when they get out of control like the UAW. That's one of the few things that I disagree on Reagan killing the air traffic controller Union was a bad thing it'll always be a bad thing when unions do not survive unions are what caused the balance of power for corporations and people that work at corporations,
Expert Robert Reich states, "Their (Americans) wages are not keeping up with prices." So, true. Corporate America needs to replace greed with rational self-interest. Their profits in 2022 are through the roof! Shop for the best price for goods and services if a business charges too high; competition is a good thing. Merry Christmas!
Be careful with that. Sometimes it's the corporations trying to undermine the independents.
The two major grocery chains in my state (in Australia) started selling roast chickens cheap, did so for about 6 months. Once a lot of the small (what Americans call "Mom and Pop") hot chicken stores went broke, the grocery stores put their prices up about 25%. The thing is the grocery stores don't even sell all the extras like hot chips, roast vegies, chicken and gravy sandwiches, etc. We've simply lost all that.
A better plan is to shop from locally owned stores, support the stores that are not trying to monopolise the market, and keep choices open.
I am a big fan of tour Channel and your philosophies in general. What you are saying is true, inflation is not cause by wage hikes, but some person sitting there are saying that repeatedly is not enough to convince people. Please do a better video on the true cause of inflation, isn't the interest rate that's charged by banks is the reason for inflation?
Everybody start shoplifting, there we go😁.
@@davidh4129 What, stealing from the thieves, is wrong?? They're screwing us ALL, over the place. Give 'em a taste, of their own medicine. The RepubliCONs own ALL, the food manufacturers🤨.
It is not about "corporations"...
the major problem in current economic system is that the "liquididy" is moving from the consumer to financial market, where it aggregates in enormous emounts.
Currently, the stock market is times more than consumer market. As we know, the stock market is owned by rich minority, so when profits from financial market are "invested" in consumer market (like real estate), the amount of "liquidity" is so high, that nothing can beat those sums and ofcourse, the inflation rises. And inflation hits the poor harder.
So there is no surprice that consumer market is monopolizing and inflation is rising. And it is government that is responsible, that sets the rules.
Also, resources are limited, so with growing population there are simply no means for everyone to have high standards of living.
It is obvious that big Corporations and money are controlling the economy. A more population friendly economy is blocked at almost every turn by GOP supporters of big money/themselves.
Yes, it is inflation. In 2021, I was able to purchase a carton of 18 extra large eggs at Walmart for $2.48. Now, those same eggs cost $6.22. Why? Why so much? My local HEB is even worse. Those same eggs at HEB cost $6.47. Why? Price gouging.
We are being price gouged to death. Corporations are making record profits. Like the saying goes, “Follow the money.” Whoever gets the money is the one at fault.
This is why we need elected officials to represent the people, not corporations. The corporations have their own representatives. This is the special interests in government that Dwight D. Eisenhower warned about in his farewell speech as being this biggest threat to democracy and the undoing of the great American experiment.
corporations should be barred from raising their prices by more than 1% per year. boycott big corporations as much as possible, support small, local businesses; keep the greed local.
They would have to tie gdp and ubd basic unconditional dividend for all Amercians W corporations to keep with up.. if we all got 50% of the GDP and dividend it then we would all get about 50k per year. Robotics would need to be supported as well.
We need to create the initiative process in all states some states have this and some cities so if you have this find out and look up how to get something on a ballot with a petition.
HOW COULD IT? THE INSURANCE COMPANIES MAKE MORE OF MY MONEY THAN I DO!
That is logically impossible.
@@RavenclawFtW3295 NO. Listen well, idiot. My company charges the customer 60$ per hour of my labor. I only get 23 of that. The company makes a profit by keeping what is left after they pay for the workers comp insurance which comes to a WHOPPING 30$ per hour of my labor. I make 23 the insurance makes 30 and the company makes 7$ profit off of every hour I work. Insurance used to be 10$ per DAY. Now it is 15-30$ PER HOUR!!! ARE YOU DONE BEING A MORON???
There is absolutely NO CORRELATION between wages and commodity prices.
Robert for president !!
Inflation prices are here to stay. There is no way businesses are going to roll prices back.
I agree that the main cause of inflation are corporations but the real issue is how the corporate media prevent what you are saying from getting on the air. Lucky we have social media but for how long.
Really nice talk. You should do more videos featuring Ms. Rice.
Yes, I have not heard anything actionable from her.
I just stop buying absolutely any extras no eating out no movies no concerts no sports events only watch free TV do not pay for subscriptions lowered my heat and put on a sweater lower lower my air conditioning in the summer or not use it at all go to all free food giveaways instead of food shopping and I get my clothes off of by nothing group or thrift stores it's what I'm doing now so I can have a decent retirement in the future just do not spend absolutely anything I do not have to
Worker owned cooperative
Robert is the Keanu Reeves of intellectuals.
Raising interest rates in conjunction with removing the 1031 exchange is a good way to disincentive housing as an investment
Poverty is the parent of revolution and crime. ~ Aristotle
In fact a strong argument can be made to helicopter money to people on the condition they pay down debt. That in itself would clear away tons of overhead and “shrink the money supply” better than interest rates.
Makes me want to be a Dexter of billionaires. They deserve nothing less.
Inflation is caused by government spending, and borrowing and printing money to cover that spending. Private companies cannot print money.
We need to change this system. Corporations are great to make Lies to cover Lies.
Inflation and interest rates are friends of extreme wealth!
I once was young and didn't take the time to understand the interest rates and penalties of the Credit Card Industry; I finally reached a point where I would have to make some tuff choices in order to dig myself out of my poor financial decisions; I certainly learned a valuable lesson that has benefited me throughout the years.
It would be better for all, if those making poor choices would learn by their mistakes and be responsible to own their debt. If they would begin to live the life of a minimalist, they could dig themselves out and it would not be necessary for the Federal Government to print more Counterfeit $s, our Nations Debt might begin to shrink and as a bonus, there would be Environmental Conservation.
Then, we should get back to teaching Reading, Writing and Arithmetic rather than Social Justice debatable cultural issues, allowing our younger generations to have the tools for making better choices in their careers.
Less demand for housing? How insane is that idea?
I am curious, I am conscious I live in my own media bubble, but is it just my feeling, or are Americans are getting more and more concerned and fed up by, what I could quickly over-simplify as, capitalist oppression?
Thanks Professor Reich for interviewing heroes like her!
Hero lol. She's a moron
When people get hungry and there kids are hungry .What do you think they gona do?
I know people love to trash Powell but imo the case for inflation being transatoy. A big chunk was caused by supply chain issues that should have been solved quicker than it was. 7/16" OSB hit $50/a sheet and is now $11 which is lower than pre-covid.
Yes, companies have keep raising prices because Americans have kept buying it. If Americans are willing to keep paying $5 for something that was $1 of course the company isn't going to lower the price. If Americans stop, the company will lower the price until there are enough buyers to support their production. I see carts at WalMart full of crap while the shoppers complain about high prices. Silly.
3:40 "No where in the US can a person on min wage afford an apartment." Duh. That has never been possible. The goal was never to have a min wage career. When I earned min wage I shared an apartment. Yup, that's right. Millions of years ago humans shared a living space. Back then, before electricity existed, there was no social media to tell us we were entitled to our own place on a min wage. We were so dumb back then we thought the only way to better our lifestyle was to learn a more valuable skill than pouring coffee or pushing products over a scanner.
Inflation is caused in no small part by moronic thinking. If you don't like the price of fuel...stop driving so much. If you don't like the price of your frozen pizza don't buy it. There are many foods that haven't gone up in price. Fresh green cabbage hasn' gone up a penny in 3 years. Healthier too! But nah, Americans love to buy, buy, buy.
I may sound like I;m complaining about morons but nah, I make a great living selling crap to lazy dumb people. They demand it, I provide it, win-win. There's nothing wrong with the wealth gap, but one side is more fun imo.
A little math and basic accounting common sense will let you know that employees wages and corporate income tax rates have nearly zero effect on product (and service) prices.
Right from the start, a product is sold for a price, then minus the cost of the product to import/make, then minus all other expenses of the entire company (rent, utilities and such including wages) equals the profit of the company. By this math it is easy to see that the wages of employees is only a fraction of the expenses of the company. So an increase in employees salary only increases the company expenses by a small fraction of the salary raise by percentage. So giving the employees 10% more only increases the expenses of the company by maybe 1%. But that is only 1% of the overhead still not counting the cost of the goods imported. So in a 50% margin product the employees 10% wage increase would only represent 0.5% of the product price. Maybe a bit more for a service company, but often much less for a retail company. And if you just look at front line minimum wage earners instead of everyone up to executive it is way way less.
But that is not how companies price products. Products are always priced to maximize profits from sales and overhead costs are never really considered in the math. Pricing is based on a formula of consumer price tolerance vs volume to maximize profit from sales. Then there is a consideration of cost of sales as in maybe increasing the product cost will improve quality and increase consumer price tolerance faster than it reduces demand volume and increase profits. But then companies take the volume sold minus cost of sales to get profit from sales, then see if that profit from sales will pay overhead. If yes run the business if no then close the business or make some different product quality choices to find a better balance of consumer price tolerance vs demand volume.
Nowhere in there are employee wages or corporate income tax rates affecting the price of the product.
To say that employees wages or corporate tax rates are in the pricing formula would be saying "companies are not currently maximizing profits from sales, but if we increase their payroll or taxes THEN they will be forced to maximize profits from sales!!!" Really, I doubt there is any company not maximizing profit from sales on purpose today just in case taxes go up in the future.
And consumers having more spending money increasing demand may have a tiny effect on consumer price tolerance in some industries. But never more than the amount of extra money the consumers have. So you will always be able to buy more stuff with a wage increase even after inflation caused by your wage increase increasing demand.
The idea that employee wages and corporate income tax have any significant effect on product prices is 100% fabricated by people who want to pay themselves instead of their employees and pull profits out of the company into their personal wealth with as little tax as possible.
So Jerome Powell believes that the biggest barrier to controlling inflation are high wages? Does he suggest that Americans take a pay cut?
I believe the stock market is the real inflation hog of everything.
The small saver needs high interest rate.
How to get UBI? Petitions in cities for iniative ballot voting to create first then state level after then federal..
This is not demand pull inflation or cost push inflation. This is price gouging inflation. Learn mmt please
@@Zach-ju5vi how in the hell are you going to devalue a fiat currency can you tell me that please
@@Zach-ju5vi you can't devalue a fiat currency you moron. The currency itself has no value. It's the real resources that have the value not the currency.
@@Zach-ju5vi because the government has said that the dollar our unit of account. It is the spending of money that causes inflation. Not how much money is being created. If I have 5 trillion dollars and I take it to Mars how is that possibly going to cause inflation. Carefully targeted spending can lower inflation. It is not the amount of dollars that are being created it is how they are spent
@@Zach-ju5vi well let's do that let's start all over again Zack or whatever the f*** your name is. If I have one trillion dollars put out into the economy the economy being human beings and resources. If there is 1 trillion dollars of goods and services to absorb that spending safely then there is no inflation. If there is two trillion dollars put out into the economy and there is two trillion dollars worth of goods and services real resources available to absorb that spending then there is no inflation. Why is this so difficult for you to understand.
@@Zach-ju5vi I will say this much you're the most obnoxious little f*** I've ever encountered and you're going away
Super interview but I was a bit distracted by the dying plant. 😞
truth