Who will bear this pain? Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
By Robert Reich, LA Progressive
This week’s consumer price index report shows annual inflation still roaring at 8.3%. Even without food and energy included, core inflation rose back above six percent year-on-year, according to the U.S. Bureau of Labor Statistics.
This means the Fed will almost certainly raise interest rates by another three-quarter of a point when it meets next week. And then probably keep raising rates.
How much economic “pain”—as Fed Chair Jerome Powell recently called it—will be needed to control the worst breakout of U.S. inflation since the 1980s?
Researchers at the International Monetary fund are now saying that the unemployment rate may need to reach as high as 7.5%—double its current level—to end the country’s outbreak of high inflation. This would entail job losses of about 6 million people.
Who will bear this pain? Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
Recent Posts
We’ve Officially Entered the Twilight of Late-Stage Trumpism
Take Action Now It’s all there in a new CNN poll, and it’s heartening to see: Large majorities are sick of Donald Trump’s vanity, venality, and…
Socialist Francesca Hong Could Be Wisconsin’s Next Governor
Take Action Now Currently leading in the polls in a major swing state, democratic socialist Francesca Hong has a good shot at becoming Wisconsin’s…
The Wars Are Still Based on Lies
Take Action Now Major lies that have gone largely unquestioned include the lie that, despite so many horrible and unpopular wars, there may be a good…
Gaza: This is not a ceasefire. It is structural violence by another name.
Take Action Now Nine months into this so-called ceasefire, the wounds of war are not only unhealed — they are still being inflicted.By Doctors…