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Celerity

(42,628 posts)
Thu Jun 9, 2022, 10:55 PM Jun 2022

Biden's Treasury Secretary Janet Yellen Rejects Idea Corporate Greed Is to Blame for Inflation

Last edited Thu Jun 9, 2022, 11:50 PM - Edit history (3)

Treasury Secretary Janet Yellen rejected the idea that corporate greed is causing the US inflation surge, differing with fellow Democrats (my add: including Biden himself) who have accused big businesses of price gouging.

https://fortune.com/2022/06/09/yellen-corporate-greed-inflation-not-causing-recession/

Bloomberg News
Christopher Condon

Treasury Secretary Janet Yellen rejected the idea that corporate greed is causing the US inflation surge, differing with fellow Democrats who have accused big businesses of price gouging.

“Demand and supply is largely driving inflation,” Yellen said at a New York Times hosted event on Thursday, when asked about the view that corporate greed is a key cause. She said that it’s true that price-to-cost margins have gone up, but she said that’s not what’s driving inflation.

President Joe Biden has threatened price-gouging probes in gasoline, and House Speaker Nancy Pelosi backed a bill in her chamber aimed at combatting that practice — saying last month that there was “a major exploitation of the consumer” taking place.

Yellen said that she supports a “strong” antitrust policy. She reiterated that, in the battle against inflation, the administration looks “first and foremost” to the Federal Reserve to deal with it.

snip



smdh




the edits were to correct links and to add a link that was missing
19 replies = new reply since forum marked as read
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Biden's Treasury Secretary Janet Yellen Rejects Idea Corporate Greed Is to Blame for Inflation (Original Post) Celerity Jun 2022 OP
What. The. Hell?! rownesheck Jun 2022 #1
And people wonder why we're critical FoxNewsSucks Jun 2022 #2
Janet Yellen is a "corporate-friendly dem"? brooklynite Jun 2022 #4
Yellen is a dud. WarGamer Jun 2022 #5
yes, and yet after admitting she fucked it up badly, she NOW wants to assure us that she can Celerity Jun 2022 #8
Should she have anticipated edhopper Jun 2022 #11
DAMN! elleng Jun 2022 #3
Of course she does....ugh JanMichael Jun 2022 #6
Offs! Don't take the bait! It's a stupid, divisive article! unblock Jun 2022 #7
'She said that it's true that price-to-cost margins have gone up, but she said that's not what's Celerity Jun 2022 #9
Are we going to hang her unless she buys into the idea that gouging is the sole cause of inflation? unblock Jun 2022 #12
She admitted that she bungled the inflation response last year MichMan Jun 2022 #13
another non sequitur Celerity Jun 2022 #14
I guess then I'm not following what exactly she said that's so unblock Jun 2022 #15
I've always thought of her as a "closet conservative" or at a minimum very conservative Dem. walkingman Jun 2022 #10
When can our Fed secretary be worth $20, not 20 million like Yellon ??? RANDYWILDMAN Jun 2022 #16
Is Biden really in a position to "go after all the corporations?" NCLefty Jun 2022 #17
She needs to retire. One of Biden's worst cabinet choices by far. Wanderlust988 Jun 2022 #18
So, is she lying, clueless, or just not agreeing with what the administration is blaming it on? MichMan Jun 2022 #19

WarGamer

(12,103 posts)
5. Yellen is a dud.
Thu Jun 9, 2022, 11:14 PM
Jun 2022

She has one fucking job... and whiffed.

“I think I was wrong then about the path that inflation would take,” she said in a CNN interview. “As I mentioned, there have been unanticipated and large shocks to the economy that have boosted energy and food prices and supply bottlenecks that have affected our economy badly that I didn’t — at the time — didn’t fully understand, but we recognize that now.”

Celerity

(42,628 posts)
8. yes, and yet after admitting she fucked it up badly, she NOW wants to assure us that she can
Thu Jun 9, 2022, 11:33 PM
Jun 2022

say, with certainty, that the corporations are for sure not driving inflation with their insane profit margins (gained via massive price increases).

Fool me once shame on you, fool me twice........and all that

She also is anti BBB (at least in terms of the size of the already greatly reduced 1.9 trillion usd package, as well as her being happy that the BIF was shredded by 80%), even though almost all studies showed it would help LOWER inflation.

ffs

edhopper

(33,164 posts)
11. Should she have anticipated
Thu Jun 9, 2022, 11:44 PM
Jun 2022

Russia invading Ukraine driving g up energy cost, a large part of current inflation?

unblock

(51,973 posts)
7. Offs! Don't take the bait! It's a stupid, divisive article!
Thu Jun 9, 2022, 11:25 PM
Jun 2022

Yellin said price-to-cost margins have gone up -- meaning, in econospeak, that companies are price gouging.

Costs go up a little, but companies jack up prices a lot.

She's agreeing that price gouging is happening.

And she's supporting anti-trust policies, meaning companies shouldn't have the pricing power to do that sort of thing.

She's also saying the fee still needs to raising interest rates because fighting price gouging alone won't completely solve the inflation problem because there are other things causing inflation.

Price gouging is by definition opportunistic. It happens when a situation arises that lets them get away with jacking up prices. It can't be the single cause of inflation, it needs some other cause to take advantage of.

But she's not disagreeing that price gouging is happening and needs to be addressed.

Celerity

(42,628 posts)
9. 'She said that it's true that price-to-cost margins have gone up, but she said that's not what's
Thu Jun 9, 2022, 11:41 PM
Jun 2022
driving inflation.'


direct quote of the article

and

you said

She's agreeing that price gouging is happening.


non sequitur

There was no claim that she said it was not happening.

unblock

(51,973 posts)
12. Are we going to hang her unless she buys into the idea that gouging is the sole cause of inflation?
Thu Jun 9, 2022, 11:56 PM
Jun 2022

What are we trying to accomplish here?

Any economist will tell you the economy is complicated and the causes of inflation are several.

It's not enough that she agrees that price gouging is among them, she has to take the simplistic view that it's alll solely due to price gouging?

MichMan

(11,778 posts)
13. She admitted that she bungled the inflation response last year
Thu Jun 9, 2022, 11:59 PM
Jun 2022

Which may now cost us the midterms. She needs to be fired now

Celerity

(42,628 posts)
14. another non sequitur
Fri Jun 10, 2022, 12:05 AM
Jun 2022
Are we going to hang her unless she buys into the idea that gouging is the sole cause of inflation?


I am not claiming (nor is Biden, Pelosi, etc) that it is the SOLE cause, as there are other forces at work, but price gouging is, IMHO, playing a greater part than what Yellen is claiming.

She admits she was wrong before, but NOW she wants us to buy into her claims again. I am not going to take her word as the end of all debate.

And she most definitely IS undercutting our messaging for the midterms.

unblock

(51,973 posts)
15. I guess then I'm not following what exactly she said that's so
Fri Jun 10, 2022, 12:41 AM
Jun 2022

problematic.

My take is that she's a bureaucrat trying to give a nuanced explanation and it sounds like you'd prefer she be more of a politician and just make a simplistic point.

Which is fair; and if so, yeah, I don't think that's in her nature. Most of the time, the secretary of treasury role calls for a bureaucrat, but it does sometimes call for a politician, and that's not her forte.

RANDYWILDMAN

(2,644 posts)
16. When can our Fed secretary be worth $20, not 20 million like Yellon ???
Fri Jun 10, 2022, 12:48 AM
Jun 2022

Most economists are out of touch, but one, worth this much, has no clue

Wanderlust988

(509 posts)
18. She needs to retire. One of Biden's worst cabinet choices by far.
Fri Jun 10, 2022, 04:01 AM
Jun 2022

The Treasury needs someone with more energy and vibrancy in the job. We need a Buttigieg clone in that department that can calm economic anxiety and has a good TV presence to be a spokesperson for the administration.

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