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pettter (pettter@mastodon.acc.umu.se)'s status on Wednesday, 31-May-2023 22:07:15 JST pettter
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- Waldo Jaquith
@waldoj That's only the "solution" (and a temporary one at that) if you ignore any path towards democratic control over the means of production.

In conversation Wednesday, 31-May-2023 22:07:15 JST from mastodon.acc.umu.se permalink
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  Waldo Jaquith (waldoj@mastodon.social)'s status on Wednesday, 31-May-2023 22:07:16 JST Waldo Jaquith
  
  It's interesting seeing economists finally come around to what has been obvious for ~18 months now: the majority of inflation is being caused by a handful of large companies using economic upheaval as a fig leaf for profit-seeking. It's called a “a profit-price spiral,” and it's what has beset the United States. The solution? Competition! Enforcing anti-trust law! Break up oligopolies to restore functioning capitalism. https://www.npr.org/2023/05/11/1175487806/corporate-profit-price-spiral-wage-debate https://www.nytimes.com/2023/05/30/business/economy/inflation-companies-profits-higher-prices.html
  In conversation Wednesday, 31-May-2023 22:07:16 JST permalink
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  1. Domain not in remote thumbnail source whitelist: media.npr.org
    
    What has been driving inflation? Economists' thinking may have changed : Planet Money
    
    Economists say that inflation is just too much money chasing too few goods.But something else can make inflation stick around.If you think of the 1970s, the last time the U.S. had really high sustained inflation, a big concern was rising wages. Prices for goods and services were high. Workers expected prices to be even higher next year, so they asked for pay raises to keep up. But then companies had to raise their prices more. And then workers asked for raises again. This the so-called wage-price spiral.So when prices started getting high again in 2021, economists and the U.S. Federal Reserve again worried that wage increases would become a big problem. But, it seems like the wage-price spiral hasn't happened. In fact wages, on average, have not kept up with inflation.There are now concerns about a totally different kind of spiral: a profit-price spiral. On today's show, why some economists are looking at inflation in a new light.This episode was produced by Sam Yellowhorse Kesler and engineered by Katherine Silva, with help from Josh Newell. It was fact-checked by Sierra Juarez and edited by Jess Jiang.Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney.
  2. Domain not in remote thumbnail source whitelist: static01.nyt.com
    
    Companies Push Prices Higher, Protecting Profits but Adding to Inflation
    
    from By Talmon Joseph Smith and Joe Rennison
    
    Corporate profits have been bolstered by higher prices even as some of the costs of doing business have fallen in recent months.

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