Journalist and activist HadasThier breaks down why it's often workers who pay the price for rise in production costs, through higher unemployment and higher costs of living. | ✍️SkyPattersonFC👇
,” Hadas Thier, a New York-based writer and activist, argues that the Fed’s monetary policy forces working-class people to pay the ultimate price for inflation. And in a recentinterview, Thier explains why Chicago is the birthplace of conservative economic policy and discusses alternative government responses to inflation that prioritize the economic well-being of workers—a break from the Chicago school of economics.
The Federal Reserve’s response was basically to take up a lot of the ideas of Milton Friedman and the Chicago school of economics and engineer an unprecedented hike in interest rates and therefore a recession. This was very explicitly not just an economic attack, but a political attack. It raised interest rates, essentially creating mass unemployment, which peaked at over 10 percent in 1982.
For Friedman and the Chicago school, the best way to fight inflation is to constrict the money supply, pull back government spending, increase unemployment to curb workers’ bargaining power, and so on. Friedman believed if you let the market do what it does, it will always reward the best ideas with profits.Those ideas are certainly very dominant today.
So, the main way that the Federal Reserve has responded to inflation is to raise interest rates. At best, that is a kind of blunt instrument because when you raise interest rates, you make it harder to borrow money by making credit more expensive. It means that it’s harder for businesses to borrow money because credit is expensive. So there’s less production and less employment.
The United States, under President Franklin D. Roosevelt, was kind of a wartime economy. Prices and controls played a very critical role in the price Stabilization Act. Rent control was a big part of that because companies just couldn’t get away with taking advantage of the state of the economy to drive up prices. There are different aspects of price controls that still exist in some places. Medicare being able to negotiate prices is a form of price control.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Kimski at Kedzie, Family Holiday Community Musical, and Clickbait - Chicago ReaderYour Monday Agenda is live with picks from kerryreid JuggaloReporter and hollo Kimski at Kedzie, Family Holiday Community Musical, and Clickbait 👇
Consulte Mais informação »
Temp workers have rights - Chicago ReaderChicago-area worker advocates said many of the temp workers they interact with have complained about wage theft, retaliation, and workplace safety issues. Here's what to do if your rights have been violated. | ✍️city_bureau👇
Consulte Mais informação »
Good riddance - Chicago ReaderHit the road Ed! 14th Ward alderperson Ed Burke is finally doing something good since taking over for his father 50 years ago–he's retiring.| ✍️joravben👇
Consulte Mais informação »
Manasseh teases a new collection of psychedelic soul with a full-band MCA show - Chicago ReaderPlus: FromChicagoToTheWorld and Real Ones host a Cole’s Bar showcase of emerging R&B-influenced singers, and young indie rockers Friko drop a new video and headline Metro.
Consulte Mais informação »
Looking back at some of the best productions and biggest stories of 2022 - Chicago ReaderIn her final Ghost Light column of 2022, Kerry Reid looks back on the stage plays and productions that most inspired and gave hope, this past year. | ✍️kerryreid👇
Consulte Mais informação »
Leaked call shows alleged bribe by Wilson consultant to Ja’Mal Green - Chicago ReaderA consultant for mayoral candidate Willie Wilson has been accused of trying to bribe challenger JaymalGreen into dropping out of the race, and the leaked audio footage speaks volumes. | ✍️Waldens_Block | Andrew Davis👇
Consulte Mais informação »