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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBiden'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 its true that price-to-cost margins have gone up, but she said thats not whats 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
rownesheck
(2,343 posts)I'm with you!
FoxNewsSucks
(10,375 posts)of establishment corporate-friendly dems.
brooklynite
(93,834 posts)The list grows every day...
WarGamer
(12,103 posts)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 didnt at the time didnt fully understand, but we recognize that now.
Celerity
(42,628 posts)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)Russia invading Ukraine driving g up energy cost, a large part of current inflation?
elleng
(130,126 posts)She just can't let them hear truth from her?
JanMichael
(24,846 posts)unblock
(51,973 posts)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)direct quote of the article
and
you said
non sequitur
There was no claim that she said it was not happening.
unblock
(51,973 posts)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)Which may now cost us the midterms. She needs to be fired now
Celerity
(42,628 posts)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)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.
walkingman
(7,505 posts)RANDYWILDMAN
(2,644 posts)Most economists are out of touch, but one, worth this much, has no clue
NCLefty
(3,678 posts)Wanderlust988
(509 posts)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.