The Solution To The Inflation Crisis That Worked TWICE Before!
The text included with the above video:
There’s no question that the inflation crisis is here and it’s not going away any time soon. So what was the cause – the Ukraine War, government spending, sun spots? And what’s the best way to solve the crisis? The New School economics professor Richard Wolff says the explanation for the current crisis is actually quite simple, and notes that the government has acted dramatically to curb inflation twice in the past, and could do so again if only those in positions of power had the political will to challenge corporate interests profiting handsomely off the high prices.
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My summary of the video:
How do you stop inflation? The simplest and fastest way is wage and price freezes. Both FDR and Nixon did this. Couple that with a tax on windfall profits.
Higher inflation. Is it because of the Ukraine war or weather or supply chain problems? No.
Who sets the prices of goods and services? Employees? Consumers? No. Employers set prices. They are raising prices and increasing their profits to record levels. Where does all that money go? Mostly not for supplies that they need to produce their own products. Not for wage increases to deal with inflation. It goes into the stock market or in stock buybacks, and it goes into the pockets of the wealthy.
Will it help if the Feds increase the cost of borrowing by raising interest rates? No. Who are the people that are in debt? Consumers. Not the wealthy. Consumer interest rates on mortgages, auto loans, credit cards, etc., are often tied to federal interest rates. It's the people with those debts that will be impacted.
Will cutting 'entitlements' and raising the retirement age help? No. Social Security is self-funded and has for decades been putting surpluses into the Trust Fund to handle baby boomer retirements. Cutting Social Security only changes the date that the Trust Fund zeros out. There is no effect on federal budget deficits or the National Debt.
