Discussion about this post

User's avatar
Ted Carter's avatar

In her recent book "The Capital Order" Clara Mattei, describes the establishments use of austerity to control the workforce.

As Powell, Summers, and others keep saying, the Fed needs to keep going until unemployment rises.

That has everything to do with inciting insecurity in the workforce, and nothing to do with inflation.

Expand full comment
John Zelnicker's avatar

Powell isn't done yet, because he has not beaten down the labor force as he said he wants to do, just like Volker in the 80's. He wants to reduce wages, not just keep increases modest.

This is the goal of the billionaire class and the corporate leaders who can't stand the idea of higher wages cutting into their profits, not even a little bit. The recent increases in union organizing have got the wealthy elites shaking in their booties. The illegal anti-union efforts of Amazon and Starbucks show just how worried they are.

The Fed is going to engineer a recession and they know it. That will increase unemployment and create the the desperate workers who will take any job for far less than they are worth. The only question is how deep a recession we will have and whether it will qualify as a depression.

I am not sanguine about the prospects.

Expand full comment
10 more comments...

No posts