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(CBS News)   The Fed announces outright that enforcing wage slavery is its overriding mission   (cbsnews.com) divider line
    More: Murica, Monetary policy, Inflation, Central bank, Federal Reserve System, Fed Chair Jerome Powell, Unemployment, Great Depression, benchmark rate  
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4958 clicks; posted to Politics » on 01 Oct 2022 at 11:30 PM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2022-10-01 7:09:46 PM  
Idiots.
 
2022-10-01 7:17:53 PM  
They're jacking up interest rates in order to cause a recession and inflate unemployment - the reason is they believe wages are too high.

Wages have been stagnant for decades. Wages are still too low.
 
2022-10-01 7:19:36 PM  

dr_blasto: They're jacking up interest rates in order to cause a recession and inflate unemployment - the reason is they believe wages are too high.

Wages have been stagnant for decades. Wages are still too low.


Can't have the peons get the belief that their labor is actually worth something and that they have opportunities to make more money or advance.
 
2022-10-01 7:43:31 PM  
Of course. Of course.
 
2022-10-01 7:46:02 PM  
Meh. It'll only negatively effect the poors. If the bottom 99% wanted to be treated like people, they'd be the 1% instead.
 
2022-10-01 7:47:22 PM  
Because Fark You, that's why.
 
2022-10-01 8:04:25 PM  
When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

Has that ever worked?
 
2022-10-01 8:15:10 PM  

Bootleg: When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

Has that ever worked?


I believe the answer you are looking for is never.  Static labor costs have never kept the cost of goods down.
 
2022-10-01 8:26:58 PM  
The most recent indicators are that inflationary expectations are nosediving this week, so hopefully they're as on the ball as they were when this all started. Oh shiat
 
2022-10-01 8:59:07 PM  
Just buy more money.
 
2022-10-01 9:18:37 PM  
They've been saying this for months at least. The problem is that inflation is far outstripping wage gains. And they've been pretty clear that in order to corral inflation, they are going to put a pretty decent number of people out of work.

Whether that's a good policy or not, I do not know. But it is their plan, and it has been for quite some time. They're not trying to sugar coat it.
 
2022-10-01 9:21:32 PM  

Three Crooked Squirrels: They've been saying this for months at least. The problem is that inflation is far outstripping wage gains. And they've been pretty clear that in order to corral inflation, they are going to put a pretty decent number of people out of work.

Whether that's a good policy or not, I do not know. But it is their plan, and it has been for quite some time. They're not trying to sugar coat it.


The problem is that it won't correct anything.
 
2022-10-01 9:21:54 PM  

Notabunny: Meh. It'll only negatively effect the poors. If the bottom 99% wanted to be treated like people, they'd be the 1% instead.


Hey man, I'm in the 1% where's my mega yacht, supermodel girlfriend and Ferrari?

It was established long ago that this "1%" income earner BS was actually class war propaganda created by the 0.01% so that people earning meager 6 figure incomes who couldn't afford compounds, tropical islands and private security would face the  wrath of the burger flipping hordes
 
2022-10-01 9:24:44 PM  

The Exit Stencilist: Notabunny: Meh. It'll only negatively effect the poors. If the bottom 99% wanted to be treated like people, they'd be the 1% instead.

Hey man, I'm in the 1% where's my mega yacht, supermodel girlfriend and Ferrari?

It was established long ago that this "1%" income earner BS was actually class war propaganda created by the 0.01% so that people earning meager 6 figure incomes who couldn't afford compounds, tropical islands and private security would face the  wrath of the burger flipping hordes


"meager 6 figure incomes"
 
2022-10-01 9:27:11 PM  

wearsmanyhats: Three Crooked Squirrels: They've been saying this for months at least. The problem is that inflation is far outstripping wage gains. And they've been pretty clear that in order to corral inflation, they are going to put a pretty decent number of people out of work.

Whether that's a good policy or not, I do not know. But it is their plan, and it has been for quite some time. They're not trying to sugar coat it.

The problem is that it won't correct anything.


It may not. I'm anything but an economist. My only point is that they have a plan and they've been transparent about it since the plan's inception long ago.

Whether it works, I guess we'll see. I tend to doubt it, because this is a global problem one nation can't solve with a tweak. But this isn't breaking news.
 
2022-10-01 10:09:12 PM  

The Exit Stencilist: Notabunny: Meh. It'll only negatively effect the poors. If the bottom 99% wanted to be treated like people, they'd be the 1% instead.

Hey man, I'm in the 1% where's my mega yacht, supermodel girlfriend and Ferrari?

It was established long ago that this "1%" income earner BS was actually class war propaganda created by the 0.01% so that people earning meager 6 figure incomes who couldn't afford compounds, tropical islands and private security would face the  wrath of the burger flipping hordes


Dude, 1% is $500k of annual income.  You're not exactly eating cat food.  If you really want a yacht you could probably figure out a way to make that happen.
 
2022-10-01 10:25:46 PM  
We should be in the streets.
Every day.
 
2022-10-01 11:07:48 PM  
CRAP! The ECONOMICS  are TRICKLING DOWN!
Plug it!!
 
2022-10-01 11:32:02 PM  
Since we're all acknowledging the game is rigged, we're finally gonna get UBI right?

Right?
 
2022-10-01 11:34:33 PM  
They should have been raising rates the entire trump administration. Powell is right.
 
2022-10-01 11:34:45 PM  
Fark user imageView Full Size


dr_blasto: They're jacking up interest rates in order to cause a recession and inflate unemployment - the reason is they believe wages are too high.

Wages have been stagnant for decades. Wages are still too low.


If wages stayed on pace with productivity, the minimum wage would be at least $25/hour today. If they stayed on pace with Wall Street bonuses, the minimum wage would be $63/hour today.

America needs a maximum wage in addition to the minimum wage, e.g. if a $30/hour minimum wage means a corresponding maximum wage at $1500/hour.
 
2022-10-01 11:36:41 PM  
We, as a species, are due for a reckoning.
 
2022-10-01 11:37:01 PM  

OdradekRex: Because Fark You, that's why.


Inflation is farking people too
 
2022-10-01 11:37:19 PM  

dr_blasto: They're jacking up interest rates in order to cause a recession and inflate unemployment - the reason is they believe wages are too high.

Wages have been stagnant for decades. Wages are still too low.


Real reason is unions are gaining traction.  Can't have that!
 
2022-10-01 11:40:40 PM  
If poor people lose their jobs, then they should just cash in some of their stock or take a small loan from their parents. I don't see what the problem is.
 
2022-10-01 11:45:11 PM  
How're many here got a 10% raise this year?

You think you're keeping up with inflation? You want them to do nothing about inflation? Well, pick one.
 
2022-10-01 11:45:36 PM  
Blame the political institutions that Americans voted for and govern the Fed. This is the outcome when the Fed has a complex problem to solve, and was only given a hammer with which to solve it.
 
2022-10-01 11:45:42 PM  
Too bad it won't put a bunch of the 1% out of work, pretty sure their bottom lines will get fatter over this.
 
2022-10-01 11:45:53 PM  
How much of this is about tanking the Democrats in the midterms?
 
2022-10-01 11:46:29 PM  

Bootleg: When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

Has that ever worked?


Companies should and will raise prices until units aren't being moved. Then prices will drop until units move.
 
2022-10-01 11:50:14 PM  

BizarreMan: Bootleg: When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

Has that ever worked?

I believe the answer you are looking for is never.  Static labor costs have never kept the cost of goods down.


Even during slavery when labor costs were effectively zero (yeah, there was housing and feeding the slaves), prices still rise to what the market will bear.

The only way to avert inflationary pressures is to tax corporate income higher. And, with a progressive tax structure to make sure that high EBT get taxed more than thise with low EBT. (EBT = earnings before taxes.)
 
2022-10-01 11:51:21 PM  
This ⤵

Fark user imageView Full Size


is the same stupid argument as "tax cuts create jobs."
 
2022-10-01 11:51:48 PM  
Starve the masses to feed the rich.

Because that's never backfired ever.
 
2022-10-01 11:53:10 PM  

Billy Bathsalt: How much of this is about tanking the Democrats in the midterms?


No.

One of the feds main jobs is control inflation.   There other is grow the economy.  Which are two very different tasks.   But This is their main tool to control inflation, which everyone agrees is way to high now.  Could they have done more earlier or slowly ramped up that's debatable.

For everyone whining about wage growth or taxes on the Uber rich, which is certainly worth talking about, taxes are not the feds job.  That's congress.
 
2022-10-01 11:53:28 PM  
From TFAWith an additional million or two people out of work, the newly unemployed and their families would sharply cut back on spending, while for most people who are still working, wage growth would flatline. When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

"Some of you may starve, lose your homes, and even die from this, but that is a price we are willing to pay to maintain shareholder profits."
 
2022-10-01 11:54:53 PM  

Peki: Since we're all acknowledging the game is rigged, we're finally gonna get UBI right?

Right?


They don't want to pay you to work.  You think they're going to pay you to not work?
 
2022-10-01 11:58:14 PM  

Bootleg: When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

Has that ever worked?


"The financial crises of the past two decades, and our failure to predict them, have wreaked havoc on more than just the global economy. The bursting of the dot-com bubble in 2000, the Enron scandal and the global financial crisis of 2008 have led to a loss of faith in economics itself.

But these crises and scandals do not mean that the science of economics is inherently unreliable. Most of them occurred because we ignored what we knew.

Perhaps most obviously, we deputized - and continue to deputize - the wrong people as authorities. For instance, many assume that the real experts on the subject of money are those who have a lot of it. But the opinions of wealthy tycoons are often dissociated from scientific evidence, out of touch with reality and all too plainly wrong. Amassing wealth as an individual is not the same thing as building and sustaining broad economic growth across nations. Often, making a private fortune is a matter of luck. 'Fortuna' is the Latin word for luck, after all."

http://www.latimes.com/opinion/op-ed/la-oe-ioannidis-economics-is-a-science-20171114-story.html
 
2022-10-01 11:58:32 PM  
The problem is that the nation is in a labor shortage and will be for some time.

I've said this for a while. There are two ways to deal with the problem with a labor shortage. You either increase the pay and willingness to train until you get the workers you need, or you shrink the jobs needed in tertiary services until the labor needs balance out, which would likely come from retail, service, and hospitality.

Making it harder for corporations to spend money to fix the problem will leave them with the only option of downsizing. It likely won't budge the unemployment much, as you are getting rid of empty jobs no one is doing, but it will implode a lot of companies that won't be able to ride it out. A lot of board members will likely see this as the end of short term gains in Wall St. and finally jump ship.

People will cry about the corporate damage, but any normal human being won't give a fark... nothing will change other than having to drive farther to get your Whopper or Nitro cold brew.
 
2022-10-02 12:00:14 AM  

educated: We should be in the streets.
Every day.


I've been told repeatedly that this course of action and things like a general strike are 1) impossible and 2) ineffective. Truth is Americans are simply too fat, lazy, and stupid to repair the situation. I'm including liberals in that as well, especially the ones in the red states. Lived in Texas for decades and it was a big joke to them that they no longer lived in a representative democracy.

So, since actual action is impossible/ineffective, I created the Do Nothing Movement. If you have the means, everyone should check out from this broken society as much as possible. I convinced my landlady (not my mom, I swear) that my rent is as much as I can, when I can. No longer give money to big corporations for entertainment and head off to family/friends to watch things as a group. Productivity/consumerism has resulted in such a global sized disaster that we're seeing mass extinctions and we all have literally polluted blood. Give up trying to make yourself rich and especially some other asshole rich. Don't work a second more than you have to and if you can, don't work at all. Things can maybe go back to "normal" with the first generation that doesn't have plastic in their bloodstream.
 
2022-10-02 12:00:33 AM  
And I take very seriously that unemployment is painful, and that its costs have been disproportionately concentrated among groups that have traditionally been marginalized

bUT F*CK THEM. aS LONG AS WE DON'T INCONVENIENCE ANY BILLIONAIRES.
 
2022-10-02 12:00:40 AM  

dr_blasto: They're jacking up interest rates in order to cause a recession and inflate unemployment - the reason is they believe wages are too high.

Wages have been stagnant for decades. Wages are still too low.


This is what they do every time wages go up. Every. Time.
 
2022-10-02 12:02:29 AM  

dr_blasto: They're jacking up interest rates in order to cause a recession and inflate unemployment - the reason is they believe wages are too high.

Wages have been stagnant for decades. Wages are still too low.


Well stated.
Except, you have to consider the mission of the talking heads that the people in charge have hired to explain to the bottom 60%...

You are in the bottom 60%.

The only reason we tolerate the 20% above you is so that we can be assured you never reach our level.

If you had any appreciation for the effort that we put into moving around programs and policies that make you think you really have a chance at any measurable wealth...well...it sure is a lot, let me tell you!

So if you will be patient, we will come up with another scheme that involves taking $10 from you with our right hand while simultaneously sprinkling $6 in front of you in the form of food stamps and tax rebates and such with our left hand.

Would that be alright then? Yes? Well thank you and see you in the bread line. Ta for now, there you go, one cross each, line on the left, careful as you go...
 
2022-10-02 12:02:55 AM  
Completely different response if a first-term Republican were in the White House
 
2022-10-02 12:04:27 AM  

The Exit Stencilist: Notabunny: Meh. It'll only negatively effect the poors. If the bottom 99% wanted to be treated like people, they'd be the 1% instead.

Hey man, I'm in the 1% where's my mega yacht, supermodel girlfriend and Ferrari?

It was established long ago that this "1%" income earner BS was actually class war propaganda created by the 0.01% so that people earning meager 6 figure incomes who couldn't afford compounds, tropical islands and private security would face the  wrath of the burger flipping hordes


Try working for a living, parasite.
 
2022-10-02 12:06:04 AM  

Bootleg: When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices.

Has that ever worked?


Hahahahaha.

No.

It doesn't work unless you have higher taxes on profits, to a) offset the social cost of unemployment and b) make it more attractive for companies to hire people as a tax write off, limiting unemployment.

The entire policy is now a "fark you I got mine" that both Gordon Gekko and Quark would think is a little too extreme.

But at least Quark has the lobes to know, as a bar owner, that more money in people's pockets, more employed people and more leisure time off work to spend at the bar, is good for business. Just not for his employees. And that's where the system breaks down.
 
2022-10-02 12:08:58 AM  
So I kind of scanned the comments but I don't know if anybody noticed that the writer of that article confused the target inflation rate as if it was a target unemployment rate.

Which is not the case.

They are not the same.
 
2022-10-02 12:12:22 AM  
Fark user imageView Full Size
 
2022-10-02 12:13:02 AM  

OptionC: The Exit Stencilist: Notabunny: Meh. It'll only negatively effect the poors. If the bottom 99% wanted to be treated like people, they'd be the 1% instead.

Hey man, I'm in the 1% where's my mega yacht, supermodel girlfriend and Ferrari?

It was established long ago that this "1%" income earner BS was actually class war propaganda created by the 0.01% so that people earning meager 6 figure incomes who couldn't afford compounds, tropical islands and private security would face the  wrath of the burger flipping hordes

Dude, 1% is $500k of annual income.  You're not exactly eating cat food.  If you really want a yacht you could probably figure out a way to make that happen.


You are proving his point. That kind of wealth is (almost always) earned by labor, and is subject to normal income taxes. It is not associated with having a team of people who work to find any and all ways to minimize taxes. It is not associated with having the ability to single-handedly change political races. 

A rich person would slit their wrists if they woke up with that kind of money.
 
2022-10-02 12:15:39 AM  
It's still mostly price gouging ..Drove half a mile to an Arco station , paid $5.10 a gallon , Chevron across the street from me is at $6.39 for regular .. Food price on a lot of regularly bought items have increased as much as 40 % ..
 
2022-10-02 12:17:02 AM  

quiotu: The problem is that the nation is in a labor shortage and will be for some time.

I've said this for a while. There are two ways to deal with the problem with a labor shortage. You either increase the pay and willingness to train until you get the workers you need, or you shrink the jobs needed in tertiary services until the labor needs balance out, which would likely come from retail, service, and hospitality.

Making it harder for corporations to spend money to fix the problem will leave them with the only option of downsizing. It likely won't budge the unemployment much, as you are getting rid of empty jobs no one is doing, but it will implode a lot of companies that won't be able to ride it out. A lot of board members will likely see this as the end of short term gains in Wall St. and finally jump ship.

People will cry about the corporate damage, but any normal human being won't give a fark... nothing will change other than having to drive farther to get your Whopper or Nitro cold brew.


The easiest way is too eliminate Medicare for a short time period, say 10 years. This would force 65+ back into the workforce in order to obtain medical insurance. Couple with with a 50% decrease in Social Security and the job markets would be flooded with workers. Unemployment would sky rocket very quickly.
 
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