Robert Reich debunks inflation myths
Former United States Secretary of Labor Robert Reich on Thursday dismantled several of the most pervasive myths about economic inflation.
Reich's argument was based on four points.
1. Wage increases are not the cause:
Although wages have been rising, they’ve been rising more SLOWLY than prices. Hourly wages grew by 5 percent in the past year — but prices rose 8.6 percent. This means, when you adjust for inflation, workers actually got a 3.5 percent pay cut over the past year.
2. Corporate greed is at the heart of inflation
Corporations are raising prices above what’s needed to cover their higher costs. These mark-ups have soared. Corporations are getting away with this price gouging because they face little to no competition. And they’re using the specter of inflation as a cover.
Last year, corporations raked in their highest profits in 70 years. One recent study found that over half the increase in prices we’ve been experiencing can be attributed to fatter corporate profits.
3. COVID-19 stimulus money saved millions of families from financial ruin:
Most families — who haven’t had a real wage increase in years — used the assistance to pay down debt or save for the future. The assistance was barely enough to keep working families afloat.
4. Republicans have obstructed President Joe Biden and the Democratic Party from combating inflation:
Republicans want to blame them for rising prices. But Democrats have tried advancing bills to bring down prices and address corporate price gouging, yet Republicans and a handful of corporate Democrats refuse to pass them.
So don’t fall for the corporate myths about inflation.
Watch below or at this link.
Debunking 4 Myths About Inflation | Robert Reich youtu.be
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