Progressives Fume as Fed Holds Working Class Hostage With High Interest Rates
Progressives Fume as Fed Holds Working Class Hostage With High Interest Rates
"The last thing Americans need right now is another threat to their wallets from the Fed," said one Democratic congressman.
"The last thing Americans need right now is another threat to their wallets from the Fed," said one Democratic congressman.
Why? I thought wealthy investors are much more impacted by high interest rates because they are often heavily leveraged. It’s not like the working class has coffers full of cash to take advantage of low rates. That’s for the rich.
Americans need you to tame unchecked corporate greed. The cost of capital barely registers.
It's bullshit. Poors access significant capital pretty much only through home loan interest rates, which at this point are almost irrelevant when decades of wages that have lost purchasing power, industry and investment speculation, along with under-building have made homes unaffordable events if you went back to 2.5% rates again. Home ownership is gone for most Americans.
Lowering interest rates mostly helps business bottom lines and also fuels actual inflation (not the corporate price gouging of the last 3 years).
We need a recession economically, along with systemic wealth distribution and tax changes, not more free money that mostly only the rich and powerful can take advantage of.
Of all the things you can complain about the US government doing to disadvantage the working class to the benefit of the wealthy...this is a really big reach.
Im guessing that over the decades US middle-class has shifted a lot from a "savings" economy to a "debtor-hell" economy. With higher interest-rates savings are slightly more valuable but spending will take a "hit". Inflation will be sky-high since everything will get more expensive as less product on shelves and demand will keep rising.
You need direct stimulus into the middle-class, lower taxes or even tax-free for below median income families, massive luxury taxes on rolexes and ferraris , 60% to 90% tax on 1+ billionaires , capped-prices on essentials and rent-controlled housing. etc. etc.
Plenty of things the Fed and govt can do to rescue the middle-class. High interest rates doesnt do enough.
Agree, lowering interest rates would be a bandaid trying to stimulate spending again since most large purchases would be with debt. It's funny the article even calls out some issues that congress can work out like high rent and record profis. It's the same when student loan forgiveness is mentioned, yes you can forgive the debt but it doesn't solve the core issue.
I don’t really care about high interest rates since it is not like I’m going to be buying a house anytime. If it means investors will move somewhere other than real state, they could be higher on f it helps bring homes back to being a place people use to live vs some corporate bullshit.
The wealthy will offset the high interest rates by raising prices and increasing unemployment:
"You know who is going to bear most of the pain of the Fed's policy?" former U.S. Treasury Secretary Robert Reich asked in a video posted to social media on Wednesday. "Not powerful corporations that are ratcheting up prices to pad their profit margins. Not corporate executives, not Wall Street, not the wealthy, and not the upper middle class."
"Most of the pain will be borne by lower-wage workers and the poor," Reich continued.