this post was submitted on 18 Dec 2023
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The economy’s strength and stability — defying many of the most optimistic predictions — represents a remarkable development after seemingly endless crises

As 2023 winds to a close, Powell and his colleagues are far from declaring victory on inflation. They routinely caution that their actions could be thwarted by any number of threats, from war in the Middle East to China’s economic slowdown. Americans are upset about high costs for rent, groceries and other basics, which aren’t going back to pre-pandemic levels. The White House, too, is quick to emphasize that much work remains.

Yet the economy is ending the year in a remarkably better position than almost anyone on Wall Street or in mainstream economics predicted, having bested just about all expectations time and again. Inflation has dropped to 3.1 percent, from a peak of 9.1. The unemployment rate is at a hot 3.7 percent, and the economy grew at a healthy clip in the most recent quarter. The Fed is probably finished hiking interest rates and is eyeing cuts next year. Financial markets are at or near all-time highs, and the S&P 500 could hit a new record this week, too.

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[–] givesomefucks@lemmy.world 76 points 11 months ago (3 children)

When a handful of corporations control entire industries, capitalism stops working.

It's supposed to be a bunch of competitors trying to get as many sales as possible by having the lowest prices or highest quality.

But in the current economy, if a corporation raises their prices across the board, the rest raise their prices. The only times they lower prices, is straight to a loss to force small competitors out of business. The large corporations can deal without profits for six months, smaller companies go under and often have to sell to the giant corporations.

This cycle has been repeating for decades, it's not hard to notice it

The only solution is breaking up those giant corporations. Republicans sure as shit won't do it, but neither will the moderate wing of the Democratic party. It would cut into their donations too much.

If anything in the economy is "too big to fail" the solution is breaking them up, not bailing them out whenever necessary.

[–] Semi-Hemi-Demigod@kbin.social 27 points 11 months ago (1 children)

It also stops working when the vast majority of the population lacks capital. The recent experiments with a UBI in Kenya show this pretty well. Folks who decided on a lump-sum payment rather than monthly invested in creating businesses and were better off.

[–] givesomefucks@lemmy.world 27 points 11 months ago (3 children)

I mean, there's been studies in America too.

Give an average American a dollar and it boost the local economy by more than a dollar.

They tend to already have things they're saving up for, and spend it at local businesses.

Give the wealthy a dollar, and they hide it in Panama. Remember that big thing where we found out they all do it and then nothing happened?

That money never gets spent, it sits in a bank somewhere anonymously and is often permanently removed from the economy.

[–] Uranium3006@kbin.social 7 points 11 months ago

Worse is when that rich man's dollar gets dumped into real estate, directly harming everyone else by making housing even more unaffordable

[–] Daft_ish@lemmy.world 5 points 11 months ago

We do have to constantly remind ourselves that the ultra rich aren't bound by any boarders and have no loyalty to any government.

[–] blanketswithsmallpox@lemmy.world 2 points 11 months ago* (last edited 11 months ago) (1 children)

Why do people even try to say nothing happened with Panama papers. I'll be the person this time and every time that shows LOTS has happened. From nearly day 1.

https://en.m.wikipedia.org/wiki/Panama_Papers

https://www.icij.org/investigations/panama-papers/five-years-later-panama-papers-still-having-a-big-impact/

[–] SCB@lemmy.world 1 points 11 months ago

People follow the initial headlines but don't care enough to stay with a story.

Same thing with Biden and the rail workers.

[–] Zorque@kbin.social 26 points 11 months ago (2 children)

When a handful of corporations control entire industries... that is capitalism. Capitalism isn't some self-correcting system that benefits all, its a system that supports and benefits those who make the most profit possible. When companies have less competition and more control, they're better able to make money. And thus, are better at capitalism.

This isn't capitalism failing to function, this is capitalism working as intended. The "free-market" is an illusion created on hope and delusion.

[–] givesomefucks@lemmy.world 0 points 11 months ago (2 children)

What you're doing is the same as saying universal healthcare and communism is the same thing...

All capitalism isn't "free market". The government (at least supposed to) regulate capitalism. There was a time in America when it would even break up giant corporations who had monopolies. Lots of Americans alive today were even alive when it happened.

Things changed in the 1990s when James Carville convinced people Bill Clinton caused the Dotcom boom with neoliberal economics.

Suddenly both parties were bending over backwards to funnel money to the wealthy at the expense of what's left of the middle class.

[–] frezik@midwest.social 0 points 11 months ago (1 children)

You're demonstrating exactly why capitalism doesn't work. Once corporations capture politicians and grow fat, it is incredibly difficult to get them out. This isn't an aberration. It's inevitable in thew long run.

If Keynesians could implement their policies and hold them indefinitely, capitalism might work. They can't.

Unionize all the things.

[–] SCB@lemmy.world -2 points 11 months ago

Unions imply capitalism, so... Sure I guess?

Like the history is wrong, and the reasoning is hellaciously wrong, but unions are indeed good.

[–] Kedly@lemm.ee -1 points 11 months ago

If Russia and China are what real world Communism always turns out to be, North America and Europe are what Capitalism always turn out to be

[–] SCB@lemmy.world -3 points 11 months ago

This isn’t capitalism failing to function, this is capitalism working as intended.

Capitalism "working as intended" includes functional institutions that address externalities.