I have been surprised that Democrats have been so mealy-mouthed about inflation. Yes, inflation is bad, and it hurts everyone, especially those living from paycheck to paycheck. Gasoline costs more than we are used to paying (while the big gas and oil corporations are reporting record profits).
But why don’t Democrats tell the facts: Inglation is a global problem. The Ukrainian war—Putin’s war—has cut off energy supplies and raised prices. Europeans have as much inflation as we do, maybe more. There have been mass protests against inflation in other countries.
To hear Republican ads, Joe Biden is uniquely responsible for inflation. Is he causing inflation around the world or shouldn’t we be talking about the “Putin tax”?
Michael Hiltzik of the Los Angeles Times reveals an important truth: the Republicans have no plan to reduce inflation. It’s their biggest issue, by far, and they have not said what they would do to curb inflation.
A look at the GOP’s election manifesto, the “Commitment to America” recently issued by House Minority Leader Kevin McCarthy (R-Bakersfield), reveals no specifics. Nor have Republican candidates done so during the multitude of appearances they’ve made on cable talk shows, despite specific and pointed questions by the hosts….
Here, for example, is Rep. Andy Barr (R-Ky.) on Aug. 21, responding on “Meet the Press” when Chuck Todd asked, “What is the Republican plan to deal with inflation other than not supporting Joe Biden policies?”
“Well, we have a positive agenda. We have a commitment to America, and we’re going to get back to basics. … We don’t need more IRS agents. We need more Border Patrol agents. And we have a common sense plan to reduce the cost of living, to lower the cost at the pump.”
But what that “common sense plan” was, Barr didn’t disclose.
Nothing is new about this campaign technique from a minority party. It consists of repeatedly citing a problem and tying it to the party in power, assuming that voters’ impulse to “throw the bums out” will deliver electoral victory…
The “Commitment to America” also claims to have a scheme to “regain American energy independence and lower prices at the pump.” A couple of problems with that. One is that the U.S. already is energy-independent — it’s been a net exporter of oil almost every month since the last quarter of 2019 and a net exporter of natural gas since mid-2017, according to government statistics.
When McCarthy says he intends to “maximize production of reliable, American-made energy” as though that will bring prices down at the pump, he’s emitting vapor.
Additional production of energy within the U.S. will simply enter the international market, where it will be subject to global price pressures such as the supply reduction caused by the Russian invasion of Ukraine and by OPEC’s decision to reduce its own output. Those are the influences driving up gasoline prices here, not the pace of production from U.S. wells….
Republicans would extend the tax cuts they enacted in 2017, when they controlled both chambers of Congress and the White House — a giveaway mostly to the rich and corporations that blew a hole in the U.S. budget estimated at $1.5 trillion to $3 trillion over 10 years — and one without any lasting positive effect on economic growth.
They’re talking about benefit cuts for Social Security and Medicare recipients, which would certainly make it harder for those households to make ends meet. They’ve talked about refusing to increase the government’s debt ceiling next year, using it to extract benefit cuts. As I’ve reported, this is playing with fire….
Undoubtedly, more can be done. President Biden is jawboning oil companies about their huge run-up in profits, but that’s just one industry. Corporate profits have soared since mid-2020 while average worker earnings have remained muted — a little-noticed spur to inflation.
Has the GOP embraced those ideas? Of course not — corporate managements and the big oil companies are its patrons. Instead of pointing the finger at them, Republicans complain that Social Security beneficiaries are collecting too much and the rich are staggering under the burden of the lowest marginal federal tax rates in more than half a century.
If you want to know why that party has nothing to offer on inflation, it’s because anything that really would address it in a way that helps average Americans would hurt its friends. We can’t have that, can we?

The fundamental assumption that both you and Hilltzik get wrong–we all did and do for all the right reasons, which is no longer a valid standard–is that republicans are interested in the nation’s general welfare. They have made it quite clear that they will govern for a select few and others just have to deal with it, preferably in easily-monitored communities. Given that mindset, they do have a plan for inflation–ignore and lie about for popular consumption and giving tax breaks and other financial advantages to their only constituents, who will profit so much, the rate of inflation will not matter to them in any way.
The primary reason I feel we are headed to fascism is because the material situation for virtually all supporter will likely get better. If it doesn’t, this reality of some populations deemed to be “unAmerican” falling behind it terms of rights, enforcement of laws, new law from populations deemed to be inferior. The gap that will be created will create an illusory world of, “at least I’m doing better than them.” Plus the favoritism that will come in all aspects of life is lagniappe. That’s the unspoken bond, “the hollow collegiality of shared skin”, that creates “the Duke Effect.”
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Their framing of the inflation issue fits this like a glove, it explains a lot.
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Yes. Thank you for your always enlightening comments, GregB.
The NYT runs hundreds of articles amplifying the narrative that Democrats are to blame for inflation and the Republicans have a plan to fix it. That infuses every article. In fact, what is shocking is that reporters there claim that since “everyone knows” (i.e. everyone in their own little circle of self-described liberals) that the Republicans have no plan to fight inflation, it would be a waste of time to mention it in the hundreds of articles they write about how the Republicans are attacking the Democrats about inflation, and the other hundreds they write about how voters blame the Democrats for inflation.
It’s like a supposedly “liberal” newspaper in Nazi Germany writing thousands of articles about how the Nazis blame the Jews for this and that and that (with the disclaimer that “some Jews disagree”) and then that newspapers’ so-called journalists explain that “everyone knows” that the Jews aren’t to blame so it isn’t newsworthy to include it in the articles. Not mentioned is the fact that the Nazis might be mad at them and they are cowards, so they have convinced themselves that never mentioning any truth that Republicans don’t want mentioned is because there is no need to mention that truth because “everyone knows”, so the truth is not newsworthy.
The liberal media has done more to normalize fascism than Fox News ever did. The few times their reporting didn’t normalize lies — as when they refused to take the bait on the Hunter Biden story or when they refused to take the bait on the “Obama’s minister hates America”– the right wing propaganda failed.
But that is rare.
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James O’Brien, the British radio commentator I’ve posted here occasionally, has the best descriptive term I’ve yet heard about our politics today. He laments the “footballification” of politics; that people choose sides instead of discuss ideas.
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Most of the mainstream media seems to be attributing inflation to the Democrats. There is no mention that more than half of inflation is due to “excess profits” with many companies making record profits. The media is amplifying GOP talking points.
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Inflation is international.
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Ugh, “republicans are NOT interested…”
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Wall Street is the driver of the global economy, and there is only one way to reduce global inflation, trust busting. Both Republicans and DLC Democrats are complicit in causing inflation by allowing monopolies to flourish. Raising interest rates will only put people out of work and lead to a recession. Regulation is the only way out, but instead, Washington D.C. is allowing more mergers, more corporate welfare for chip manufacturing in labor suppressed countries by companies that still engage in stock buybacks, more price gouging and war profiteering. Watching it happen is like watching my school district mandate standardized testing all year long. It’s self defeating corruption.
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A BIG round of applause to you! Gov’t used to be the regulators of big business….now the Gov’t subsidizes (using tax $$) and gives tax incentives to big business. Both sides do it equally. If the Gov’t started doing its job for “We the People”, this whole messy situation would be a whole lot easier to clean up….and we would have the $$$ for the social programs that most Americans want/need (M4A, SS etc.). Get the Economists out of every aspect of Gov’t!!
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For decades, the GOP has been blaming Liberals for every issue they can invent and/or inflame and often the problems behind those issues were caused by Republicans, not liberals, who do not control the Democratic Party.
But the GOP has still been very successful demonizing the Democratic party by painting it as a liberal party controlled by socialists and communists.
Trump did not invent the BIG LIE. The Nazis did that under Hitler but the Republican Party and its extremists elements have continued to refine big lies, many of them, for decades.
One of those big lies was Reagan’s A Nation at Risk report that declared war on the nation’s public schools, its teachers and their labor unions.
The school-to-prison pipeline was another one of those big lies that never goes away because the Republican party won’t stop repeating that lie. Once the GOP finds a big lie that works, they keep pounding on their war drums stirring up their ignorant, easy to influence base of voters.
And the Democrats are guilty of mostly being incompetent when it comes to countering those endless, repeating big lies.
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What does Hiltzik mean, “Republicans have no plan”?
Republican Fed Chair Jerome Powell clearly has a plan. It’s called “raise interest rates until the housing market and economy tank in recession.”
Powell’s plan is clearly to create the sort of public disillusionment and outright suffering that will get a Republican elected President in 2024.
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Mission Accomplished!
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Powell always looks like he has been sucking on a lemon, while the real lemon stares him in the face every time he looks in the mirror to shave.
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People are going to blame Biden when the country goes into recession and millions lose their jobs as a result of Powell’s interest rate hikes.
And I can’t say that they won’t be at least partly right to do so.
Biden should have fired Powell and appointed a new Fed Chair the day he became President.
Why he kept around — and STILL keeps around — a Trump appointee is a complete mystery. One needs to know nothing more than that Trump liked Powell.
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Biden should have regulated Wall Street. But that’s the opposite of what Biden always stood for.
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Although, the information noted at the following link adds a little something.
https://prospect.org/economy/powell-sold-more-than-million-dollars-of-stock-as-market-was-tanking/
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What is new? Republican Bob Dole, by all accounts a “moderate”, stood at the 1996 convention and blamed the “failure of American Schools” on Teacher’s unions. His solution? he had none. Since the Great Depression, the Republican Party has had one line: Things are terrible so elect us and they will be peachy. The fact they have succeeded at this is a savage indictment of the American population.
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Things are terrible so elect us and they will be peachy.”
Republican Fed Chair Jerome Powell is doing his damnedest to make the “things are terrible” part a reality.
Then Trump, DeSantis and other Republicans will only have to lie about the second part.
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When it comes to sabotage, it’s always good to have a guy on the inside.
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Robert Reich posted this on social media today. He is frustrated with the Fed too. “Memo to Fed: Interest rate hikes aren’t working because inflation is coming from corporations using it as cover to price gouge.”
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Note to Robert Reich: Never assume ignorance when partisan politics is a more plausible explanation.
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“This is the current inflation story. Companies have passed higher costs on to customers. But they have also taken advantage of circumstances to expand profit margins. The broadening of inflation beyond commodity prices is more profit margin expansion than wage cost pressures.” — Chief Economist at UBS
https://www.commondreams.org/news/2022/11/03/top-economist-major-global-bank-says-corporate-profits-are-fueling-inflation
That’s precisely what people mean when they say ” corporate greed (in the form of price gouging) is a significant driver in the current inflation.”
The hilarious thing is that TEs “it may be ” caveat basically admits (albeit tentatively) what he criticizes others for saying. You know, the “argument” he has a big problem with
If TE has a “big problem” with that argument may be he should take it up with Paul Donovan, chief economist for UBS Global Wealth Management.
I’d love to be the fly on the wall witnessing that “debate” , which I suspect would end with Donovan laughing (at TE, not with him)
Ha ha ha
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To say that “it may be that corporations are taking advantage…” is actually to misrepresent the situation as if it were unknown.
It’s not “unknown”.
Corporations ARE taking advantage, in some cases jacking the price up way beyond what is justified by increased costs, which exacerbates inflation.
The Economic Policy Institute did an analysis that detailed as much and House Committee also just released a report that documented the same thing.
Click to access 2022.11.04%20ECP%20Staff%20Report%20re%20Excess%20Corporate%20Profits.pdf
TeachingEconomist won’t admit it, but greed IS fueling inflation.
He is simply wrong. What else is new, right?
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A big problem with the argument that corporate greed is causing inflation is that corporations were just as greedy when inflation was low.
Part of what is going on is classical inflation: too much money chasing too few goods. Part of what is going on is a change in the relative price of energy, making energy intensive goods more expensive.
It may be that corporations are taking advantage of the inflation that exists to raise profit margins without consumers abandoning their product. The corporation’s ability to do this will disappear when inflation returns to a relatively low level.
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Right. This is spot on. In reality, inflation is hard to curb. Both parties share responsibilities for it, though it is correct that the wealthy corporate leaders gain the most from it. COVID relief is part of the cause: Republicans were running things when we gave out lots of money to folks to spend to help get them through the Covid crisis, though Democrats and most of us agreed relief was needed at that time. IF Republicans have a plan, it might include holding wages down (as during Nixon’s time), cutting government benefits–such as Social Security. Such cuts might help reduce price-push demand, but would certainly hurt lots of lower income folks. In reality, “inflation” is just a political buzzword, like “crime,” etc. Republicans of today don’t actually believe in using government to help average folks, but only to benefit their rich benefactors.
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The NY Times reported today that GOP leaders are planning to cut both Social Security and Medicare and raise the age of Rligibilty.
Unfortunately, most Republican voters don’t know that. They would rather talk about crime in NYC or Detroit.
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Today?? Because the NYT felt that it was not important for readers to know the obvious until a few days before the election??
What an embarrassment that newspaper has become to journalism.
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The BLEAT goes on…
Sheep make bleating sounds,
which is the sound that we
hear as “baa” (it’s the other).
They make these sounds to
communicate with other sheep,
to let other sheep know of
their status in society…
Tagging old Joe with inflation,
’cause he said
“the buck stops here” is a big
DUH that ignores the cabal
of omnipotent, appointed
shepherds. Scotus and Fed chair
for starters.
Baa, Baa, Baa,
Baa, Baa, Shazam.
Pull the wool over their
eyes, it’s ameri-can…
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Where are we this week . Are we in an out of control wage price spiral or are we in a recession. Hard to tell which from the Media. Well GDP grew nicely so I guess you can scratch recession . That was a great recession we had 3.5% unemployment “If that is what it was I love it” .
Wages annualized in July and August went up at 3.8 % they were 3.6 % in 2018 . I guess someone forgot to tell the workers there was a wage price spiral . What ever stimulus was paid out, is it sitting in workers bank accounts being drawn on to pay increased prices weekly? I don’t think so!
So as the NY Times article the other day stated employers especially in the Food and Restaurant sector are adding fat profit margins on top of their increased costs . Business responsible for driving 54% of inflation vs labor in the 70s and 80s, driving 70% . Wages today only 8% . Record profits not seen in 75 years .
. But why? Because they can. The “Bad News Media” drove hysteria about inflation and people came to expect it. I mean $3.40 gas last November pre Russia . Peoples memory must be short, from 2011-2014 four whole years gas averaged between $3.60 and $3.90. I don’t recall the hysteria. How much have wages risen in the last 11 years . Americans keep their cars an average of 12 years. What is the millage of the average car on the road in 2022 vs 2011. Americans today are working substantially fewer hours to pay for gas than in 2011 .
Wages were up but mainly in the bottom 1/5 of the labor force. A well deserved raise. The media provided the cover for price gouging with endless tales of worker shortage and rising wages.
But why have businesses been able to maintain prices . Well if you think its the stimulus 1.5 to 2.5 years later I have a few bridges to sell. Covid not only disrupted Manufacturing , Supplies and and the Supply Chain. It disrupted spending patterns and labor markets. Two trillion dollars bouncing from Services, Leisure Travel and Entertainment to Goods in 2020 and 2021. Then back into Leisure ,Entertainment and Travel in 2022. Creating higher demand on a rolling basis in each sector but not much more total demand. .Total demand for goods and services in 2021 about where it was projected to be for 21 back in 2019 . That is not a story of stimulus causing inflation.
The Great Retirement or Resignation what ever it may turn out to be, allowed low wage workers to get substantial raises that make the price increases a bit more bearable. The increase in work from home has given those families a huge savings in commuting and other costs . Money that more than offsets inflation. Housing Costs according to the San Francisco Fed substantially driven by increases in working from home. People moved out of Cities no longer tied to an office or sought more space for a home office. And while we are at it how many millions of Homeowners refinanced their mortgages at record low interest rates giving them a lot more disposable income. Inflation is sticky because many American Consumers are not in as bad a place as the media makes them out to be, some are but many aren’t.
But what could Democrats have done about it . They could have had the strength of their convictions and explained to the American people repeatedly that raising interest rates wont put one more car on the lot or Chicken on the shelves as Warren and AOC did. But they were in a very small club willing to challenge the Fed and the conventional wisdom from economists and talking heads who by and large had missed the coming Financial Crisis in 2008.
Biden finally woke up in the last few weeks to use the bully pulpit about price gouging something that should have been done back in March . House Democrats should have proposed a new excess profits tax every time Republicans blocked it in the Senate. As Republicans did with ACA. Nancy walking it over to Chuck weekly reading off the list of Republicans who blocked it.
Biden should have threatened and used the Defense Production act to Nationalize the American Oil Industry in a time of a proxy hot war being fought to defend Democracy against authoritarians not limited to Russia. Picture the Republicans screaming socialist as gas prices came tumbling down .
I am not a big fan of James Carville however as he said every good story needs a villain . And what better villain than big oil and Corporate greed .
But that is not who Democrats are is it .
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“they were in a very small club willing to challenge the Fed and the conventional wisdom from economists and talking heads who by and large had missed the coming Financial Crisis in 2008.”
The irony is that Fed Chair Powell is actually not an economist (he’s a lawyer) and even his own Fed economists (along with a significant number of outside economists) are telling him that his continuing interest rate hikes will very likely lead to recession and layoffs of a large number of workers.
A fairly recent analysis by Fed economists estimated that if the Fed raises interest rate to something on the order of 5% , it will lead to over a million layoffs. But Powell either evades the issue entirely or when asked point blank by folks like Warren, uses Alan-Greenspanesque language (euphemistic gibberish) like ” soft landing” to describe recession and unemployment.
If he hadn’t been appointed by Trump, who only hires men and women to do his bidding, it would be hard to understand how Powell got the job to begin with. He’s completely unqualified by traditional standards.
Then again, for his purposes, he doesn’t even have to understand the ramifications of his actions. Nor does he give a damn.
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But as I said above, when the inevitable results of Powell’s actions become apparent to everyone, voters will blame Biden. And Powell will simp!y collect his (fake) economics Nobel Prize for “saving the world from inflation” , as happens so frequently.
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A key element that Powell is “missing” is the “lag” in some economic sectors (outside the stock market, of course) between a raise in interest rate by the Fed and the resulting outcome.
Powell just keeps raising interest rate willy nilly without even waiting to see what impact it will have. He either doesn’t understand or simply doesn’t care (or perhaps both).
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Or having been upended by the Russian invasion, Powell is taking the safe alternative to preserve his reputation. What could go wrong listening to Larry Summers???!! . After all “inflation affects everybody”. 7% unemployment only decimates 8 -10 million people and tens of millions more who get laid off or seek to change Jobs every month.
Solving supply problems on the demand side is a half a– backwards approach . But ” a recession is when you are unemployed a depression when I am unemployed” and nobody cares until it hits them . Powell will certainly not be affected .
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And with the recent 1% interest spike by the Fed, it is blatantly obvious that our economy is meant to serve those who dominate it, not those of us who depend upon it. The problem is that the Republican Party serves corporate America and political obstruction serves their interests. The fact that the Democratic establishment is so passive means they are either jealous of Republican success or that their advocacy for American workers rings hollow.
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