In his interview with Lawrence O’Donnell, Larry Summers exposed the inconvenient truth about inflation and much more; It is shameful.
He makes it clear inflation is a fraud
The main engine of our form of capitalism is essentially neoliberalism. This exchange between Lawrence O’Donnell and former Treasury Secretary Larry Summers exposes its draconian nature. But you must read between the lines. They are experts at shrowding its implementation of antiseptic slavery in terms that seem like a matter-of-fact of how the system must operate.
Here is a relevant part of the exchange below. Please watch the entire video because one sees how one can seem benevolent yet authoritative in presenting evil on the working and middle-class.
Lawrence O’Donnell: What is happening to “purchasing power” this year. We know inflation, and you gave an early warning on inflation. You gave us an early warning on it. But what has happened to “purchasing power” and incomes along with inflation?
Larry Summers: Wages have come down. That’s the usual experience, the usual experiences that past a certain point when you start seeing wage increases running above four and a half or 5%. It actually goes with decreasing real wages, decreasing purchasing power for workers. That’s why it’s so unfortunate that the economy was overstimulated last year. That’s why it’s important that the Fed act strongly to bring down inflation. Now, we’ve caught a very bad break coming on top of the seven and a half percent inflation. We we have. We now have extra inflationary pressure coming from oil prices and coming from wheat. And it’s something we’re going to need to really go after with policy. That means strong monetary policy. And that means sensible supply side policies where the government concentrates on procuring as inexpensively as possible, where we open up shipping to whoever the cheapest shipper is, rather than require that it be an American shipper. Carrying oil, for example, from Houston to the east coast of the United States, that we yes, absolutely. Look after child care, but we focus on making sure that we’re doing as much as we can for children, not for child care providers. We can contain inflation, but it requires focusing on containing inflation.
The statements that I bolded and numbered above are crucial to understanding the evil nature of neoliberalism. The aggregate codifies working Americans as antiseptic slaves in our economic system.
- The notion that after the corporatocracy raises wages over 4.5 to 5%, the worker is penalized with purchasing power loss proves that the economic system is defective. It is equivalent to saying that it cannot give the masses a living wage that makes one’s life comfortable. It proves that every cost in the economy must be borne by the people and never at the expense of corporate profits and executive bonuses. They must always win.
- When Summers states that the Biden administration overstimulated the economy, what the hell does he mean? Does he mean that people must suffer at the expense of a flawed economic system unable to function for all? We must remember that this neoliberal system extended the pandemic first, seeking profit. They held their patents on vaccines developed with taxpayer dollars, limiting the distribution of the vaccine globally.
- Summers’ claim that the inflationary pressure comes from Russian oil sanctions and Ukraine’s inability to plant a crop this year is a farce. This war is occurring early enough that governments could incentivize farmers to grow in America, Central America, South America, and the Caribbean. But for neoliberals, that would mean government involvement that will affect their profitability. You see, they want inflation in oil and wheat. Why? Less product at a higher price means more profits for the people moving the product, not the ones growing or mining the product.
- When he says “strong monetary policy,” he means higher interest rates for the masses. Of course, we can help the people by instituting much higher taxes on those who accumulated wealth from underpaying their employees. That ensures that providing healthcare, childcare, family leave, student debt relief, etc., is not inflationary even in this draconian economic system where 60%+ live a life of struggle.
- When the thief masquerading as a benevolent economist claims that we need to institute supply-side policies, he wants additional pilfer on the masses. Summers wants to disregard the Jones Act that forces shipping between U.S. ports on the U.S.-built and operated vessels. He wants to kill yet another American industry to enrich the few by allowing cheap shippers to enter the U.S. market. You see if our farmers produce more wheat and we have more oil to ship, in his opinion, the rich can make more money by reducing the cost of the hops between U.S. Ports.
- Now Summers understands that lack of childcare keeps many American “antiseptic slaves,” read potential employees, from going to work. But he wants to minimize the cost of relief. He wants just enough but not too much. The undercurrent is that they offer nothing to those small daycare providers. But guess what? The economy of scale says that a new market for the big guys to open daycare may be at hand.
Please do not believe the word salads from these quacks who continue to find ways for us to pay for their well-being. They are a type of parasite that attempts to justify their method.
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