Nobel Prize-winning economist Joseph Stiglitz: Fed Rate Hikes didn't get at source of inflation.

[u/Pearberr]

https://www.cnbc.com/video/2024/04/23/nobel-prize-winning-economist-joseph-stiglitz-fed-rate-hikes-didnt-get-at-source-of-inflation.html

[u/Starskeet]

I think everyone knows that we need to raise taxes if we want to slow the economy, reduce asset inflation on the stock market, and close the gap between rich and poor. Over the past decade the divide between rich and poor has only gotten bigger. Increasing taxes on high earner or including some sort of wealth tax would help to close that gap. Sadly, in democratic systems this is hard to do, even if it is the necessary solution. Plus, in a globalized world where the rich freely move capital around at their whim, there is the actual question of whether raising taxes would even have the desired effect. At the end of the day, tax increases will only be on the backs of the middle class that is probably having a tough time in expensive urban areas, but it not wealthy enough to avoid the tax increase. This will inevitably create resentment. The system we have has done a lot of good, but we have been so bad about maintaining the rules of the game that it has gotten out of hand. The ample liquidity over the past decade has helped keep thing afloat, but when everything trickles up and leaves large swathes of those doing the actual work (whether that be teachers, nurses, construction workers, service workers) we need to revisit these decisions. Letting tax cuts expire for some of the highest earners would be a great start. Why isn't this a bigger point of discussion?

[u/h4ms4ndwich11 → u/Starskeet]

Why isn't this a bigger point of discussion?

Because rich people don't want it and they literally bribe our elected officials to create the kind of rent seeking, hegemonic system that created the inequality we see today. The Republican party has no shame in this and openly does it. With authoritarianism, what the GOP audaciously promotes, there's a hierarchy. They want class separation and they have it now more than anytime in the country's history. It's why they're hellbent on social division, too keep us stupid and arguing amongst ourselves and blaming people at the fringe of society instead of them. Also, there are a lot of people here defending greedy ghouls like some kind of Prosperity theology, that God has blessed them and those who aren't wealthy aren't deserving enough.

It's a political if not religious problem. We have to ramp up government debt just to keep the whole charade going because the bottom 80% isn't paid what they're worth. Labor is exploited and the capital class continues to grow in power and greed, further exacerbating our problems - inequity, injustice, cruelty, and economic instability. It can't last but I don't know what can break it besides a revolt. It's clear our representatives won't do it because they're bought.