Why is the Federal Reserver trying to drive down wages?
Why is the Federal Reserver trying to drive down wages?
Some policy experts are urging the central bank to stop jacking up interest rates before it tanks the economy.
Does it make anyone else angry that Janet Yellen and the Federal Reserve are trying to "Get Wages Down"? I would ask who these people work for, but that's fairly obvious at this point, and it certainly isn't any of us.
Wages have failed to keep up with the rest of the economy for decades now. The middle class belongs on the Endangered Species List. But paying people a moderately comfortable wage, or even a living wage, would get in the way of maximizing corporate profits.
Late stage capitalism is bad enough without having the government actively trying to make it harder on the average worker. We need to protest these policies!
If you want inflation to stop just put extra tax on companies that have increased consumer prices in last 12 months. In 12 months you see that inflation under control again.
Of course this is never going to happen but we all know the reason for inflation.
Just need to make corporate taxes similar to personal ones, but as a percentage basis. Did you have a 40% profit? Okay, you pay 37% in taxes on money earned above that. 35% profit? 33% tax.
Stock buybacks should be considered profit for tax purposes.
If an employee gets paid more than 50% in stock/stock options and the company has more than 10 million in revenue per year, the company should pay taxes on that as well.
If we did that and closed a few other loopholes, we’d probably see companies investing more into the business and prices would also not rise quickly.
That sounds like it would be really difficult to track and implement in practice though. Companies would just bring in very slightly different models with new names, or do a bit of shrinkflation. Tracking like-for-like equivalents would be a nightmare and everything would get tied up in the courts.
The government would rather a few percentage of its population suffer than add a windfall profits tax to the corporations. The powers that be do not want everyone realize this shit is all because of greedy corporations.
Its not rocket science. Ruling class is going to do ruling class shit.
I had the same question after watching Cathy Wood of Ark Invest’s jobs report yesterday. My thought being “isn’t higher wages a good thing, and can help people weather inflation?”
As others have said, there are better ways the fed can go about dealing with inflation than wanting the average person to have lower wages. It’s frustrating.