According to many businesses, the problem is now that unemployment is too low.

Imagine that? They spend years building up a furor about needing to create more jobs. The immigrants are taking our jobs. Businesses need lower taxes to create more jobs.

Now, all of a sudden there isn't enough starving laborers demanding work and it's causing the working class to become emboldened and to ask for raises and benefits. Suddenly we need to raise unemployment, according to the rich people.

[media=https://youtu.be/KKD1iRvsjHA]

This page is a permanent link to the reply below and its nested replies. See all post replies »

Ynotisay · M

On the surface it makes sense that lower unemployment is better for the economy. But that's not entirely true. One of the downsides to "maximum employment' is that it makes it harder to hire and retain, which typically means higher wages, with that cost being passed on to consumers. And every time the Fed's tick up interests rates to respond to inflation that ripples through the economy too. It's a balancing act for sure. The REAL issue as I see it is corporate wealth disparity. They will move nothing from their coffers. The strategy is to always raise prices so the C-suite doesn't take a hit. And that's outside of the uber wealthy accumulating wealth. Elon Musk makes roughly $45 million a DAY.
If that kind of wealth isn't capped then this game of workers fighting for crumbs will continue.

ViciDraco · 36-40, M

@Ynotisay That is basically the crux of the problem, yes. And they operate on percentages too. If it costs them 10 cents in labor and supplies to generate a product that they sell for a dollar, that is a 1000% return. If costs increase to 20 cents, they do not then charge $1.20. They charge $2 to maintain that 1000% return.

Not only do businesses pass on the cost increases, in many cases they are raising prices beyond their cost increase and using the increased wages and supply costs as a mask. Thereby increasing their returns and blaming the economic environment.

Ynotisay · M

@ViciDraco You're right. The pandemic exposed a LOT of pricing strategies by corporations. And they had the foil of the supply chain to lean on - well after it was back and running as it was prior. And when the brilliant economists were in agreement that a recession/depression was on the horizon it gave them even more of a license.

I just hope people take a second to consider Biden's words about the UAW strike. "Record profits should mean record contracts for the UAW." That's true. But, as is always the case, a whole lot of people will stand against unions and workers because they've been systematically trained to kiss the hand that beats them. I've always felt that wealth disparity is the ONE issue that could/should coalesce all working Americans irrespective of party. But it doesn't seem to happen. "Trickle down" is still seen as viable. I don't get it.

Picklebobble2 · 56-60, M

@Ynotisay This needs to be printed out in letters six feet tall and shoved under business' nose !
The reason you can't get employees is because people have learned it's not worth working yourself ill for pennies while companies Management and boardrooms make huge sums and then not re-investing in the very people that got you there.
And employees no longer trust government to let companies know where they get off.

Want to know the up coming biggest sector in the next five years ?
The black economy.
People living and working off grid and not putting their earnings through the tax or banks because nobody trusts either

Ynotisay · M

@Picklebobble2 Very solid take. 👍

JSul3 · 70-79

@Ynotisay 'Trickle down' is the 1% urinating on those below them in the economic chain.

Ynotisay · M

@JSul3 Pretty much nailed it. But how and why people have been convinced to take it always makes me stop in my tracks. I don't get it.

JSul3 · 70-79

@Ynotisay It is bizarre, just like people continue to vote against their best interests.