"Raising interest rates puts the burden of fighting inflation on low-wage workers," notes former Labor Secretary Robert Reich. "For once, let's take aim at an actual driver of inflation: corporate profits."
what's crazy is it will technically hurt businesses too but i think this is also intentional. the big businesses with the big donors and megabilloniares will be fine in fact will come out on top as usual. plus this is telegraphed so far ahead they have plenty of time to reshuffle now and prepare for controlled layoffs to keep those shareholder dividends flowing. small busineses and corps will shutter, exactly as planned, proletarianizing more petty boug and leaving plenty of discount assets for the big players to scoop up. i wonder if recessions have been scary for these guys at all in the last 70 years now or just seen as opportunities.
Depends on the sector and impact. Companies which make items/services that are largely inelastic can see it as a boon; and ones which are looking to 'diversify their portfolio' would certainly see it that way, since any companies they'd be trying to acquire would have lower price tags due to deflated stock prices+lowered asset values.
On the other hand, higher interest rates makes borrowing harder, and a lot of companies saw loans as (nearly) free money for ages, since interest rates have been so low for so long; some companies would just borrow money and then simply beat the (low) interest rate for free money. So I'm sure quite a few are pissed those money pools are drying up.
Unfortunately not from my personal experience; I had the misfortune of getting an advanced degree as a bean counter, so I was taught much of this, and textbooks are extremely dry and neglect to connect much of the reasoning behind the framework, or for that matter even having examples outside of a vacuum with 'completely elastic supply and demand' (l m a o) as it were for things such as econ.
I have heard good things about some of Richard Wolff's work, in particular "Contending Economic Theories: Neoclassical, Keynesian, and Marxian", but I'll leave it to others to comment on that particular piece.
Aside from Richard Wolff who is mentioned below, I recommend Michael Roberts (https://thenextrecession.wordpress.com/) and Michael Hudson (https://michael-hudson.com/). None of them are perfect but they all have interesting takes on economics.
what's crazy is it will technically hurt businesses too but i think this is also intentional. the big businesses with the big donors and megabilloniares will be fine in fact will come out on top as usual. plus this is telegraphed so far ahead they have plenty of time to reshuffle now and prepare for controlled layoffs to keep those shareholder dividends flowing. small busineses and corps will shutter, exactly as planned, proletarianizing more petty boug and leaving plenty of discount assets for the big players to scoop up. i wonder if recessions have been scary for these guys at all in the last 70 years now or just seen as opportunities.
Depends on the sector and impact. Companies which make items/services that are largely inelastic can see it as a boon; and ones which are looking to 'diversify their portfolio' would certainly see it that way, since any companies they'd be trying to acquire would have lower price tags due to deflated stock prices+lowered asset values.
On the other hand, higher interest rates makes borrowing harder, and a lot of companies saw loans as (nearly) free money for ages, since interest rates have been so low for so long; some companies would just borrow money and then simply beat the (low) interest rate for free money. So I'm sure quite a few are pissed those money pools are drying up.
This was a really interesting comment thread, btw. Can you recommend some additional reading/videos/podcasts etc. to learn more?
Unfortunately not from my personal experience; I had the misfortune of getting an advanced degree as a bean counter, so I was taught much of this, and textbooks are extremely dry and neglect to connect much of the reasoning behind the framework, or for that matter even having examples outside of a vacuum with 'completely elastic supply and demand' (l m a o) as it were for things such as econ.
I have heard good things about some of Richard Wolff's work, in particular "Contending Economic Theories: Neoclassical, Keynesian, and Marxian", but I'll leave it to others to comment on that particular piece.
ah thanks :rat-salute-2:
Aside from Richard Wolff who is mentioned below, I recommend Michael Roberts (https://thenextrecession.wordpress.com/) and Michael Hudson (https://michael-hudson.com/). None of them are perfect but they all have interesting takes on economics.
why are so many michaels into marx?
Also Marx biographer Michael Heinrich