The stock market has no problems and line go up forever.
Well, they probably will decrease inflation, by crashing the economy. So they can’t decrease inflation per se, but they can crash the underlying economy and the huge reduction in demand decreases inflation. And they probably know it & want it. Because it will be good for big corporations in multiple ways;
- more desperate labor force
- big corporations will still be able to get cheap loans (who wouldn’t give loans to Walmart for example), so they will be able to buy their smaller competition
- the Fed might crash the economy by raising interest rates while restarting QE, a money-printing program that is specifically targeted to help only the big banks and big corporations
And if inflation is ultimately caused by shortages due to lack of investment, what happens when the recession/depression ends? Inflation resumes. I’m starting to wonder if the rate of profit is so low now that inflation (fake profits) will be more or less continual as long as capitalism remains dominant. They fixed it by gutting the new deal in the 70s but there’s not a lot left to gut now.
We have high (legal, financial and logistical) barriers to entry for new competition under a capitalist system and the entire economy is dominated by large corporations that are able to raise prices at will? At the same time the government is giving even more money to big corporations and refuses to build even basic state-owned infrastructure to at least alleviate the stranglehold of the big corporations on the entire system, much less talk about nationalization??
Hello, latestagecapitalism!
