leviathan-supersystem:

leviathan-supersystem:

mysterioustrickster:

leviathan-supersystem:

i need you to understand that the ruling class hates you and wants to hurt you as much as they possibly can

as always, tumblr is wont to take things deeply out of context. please read news sources:

Source: Bloomberg

Image Description:

Two screenshots of a Bloomberg News article that read: “The promise of wages moving up is a great thing,” Powell told reporters on Wednesday after the Fed raised interest rates by a quarter percentage point and signaled six more to come this year. “But the increases are running at levels that are well above what would be consistent with our 2% inflation goal over time.”

Wages rose at a year-on-year rate of 5.8% in February, the fastest pace in data going back to 1997, according to calculations by the Federal Reserve Bank of Atlanta. That’s markedly above the roughly 4% level that would be consistent with 2% inflation and 2% growth in worker productivity.

The Fed sees inflation, as measured by the personal consumption expenditures price index, falling to 2.7% by the end of next year and 2.3% by the close of 2024, according to the median forecast of policy makers released on Wednesday. The figure was 6.1% in January. 

As Powell suggested, that’s probably not doable unless wage gains slow. But it’s not clear how that would come about if the labor market stays as tight as policy makers expect. They forecast unemployment will fall to 3.5% by the end of 2022 from February’s 3.8%, then basically hold at that level through 2024. That’s below the 4% mark they reckon is consistent with maximum employment in the longer run.

“It’s fanciful to think that we don’t see an increase in the unemployment rate,” given the impact that the Fed’s planned rate increases will have on the economy, said Diane Swonk, chief economist at Grant Thornton.

In other words, the fears of the Fed are specifically that these high wages indicate inflation much higher than is ideal, and that they will lead to higher unemployment numbers. The Fed is in charge of regulating inflation and unemployment through setting federal interest rates, and if they’re saying something bad is about to happen, it’s worth paying attention to. Please read real news articles before reblogging things that seem sensationalist.

“uhm, it’s actually good that the fed wants to reduce your wages, because they pinkie promise they have a good reason to. see, it says so right here, in fucking bloomberg”

i am begging you to stop being a stupid chump

my god, and you didn’t even read your own excerpt. did you see where it said they were worried the forecasted 3.5% unemployment rate would be too low, and that they’re aiming for a 4% unemployment rate that they consider to be “consistent with maximum employment in the longer run”? they’re trying to raise the unemployment rate you moron.

dear fucking god you’re so desperate to shill for the fed you’re not even reading your own sources. jesus.

having had some time to cool down and get less mad about what a moron they are, let’s explore why they probably misread the article as meaning the fed wanted to reduce unemployment.

what i suspect got them was the phrase “maximum employment in the longer run”- now, someone who isn’t well-versed in economics might assume that’s they mean the maximum possible employment. that is not the case. what they mean is, the maximum that they, the fed, want to allow. it is capitalist gospel that an unemployment rate approximately 4%-5% is ideal, and the fed, following this gospel, want to raise unemployment to the level they consider preferable.

in truth, achieving and sustaining lower unemployment rates is entirely possible. cuba has an unemployment rate of 1.6, and Laos maintains a shockingly low 0.6. the claim that 4%-5% unemployment is in any way desirable is just an ad-hoc justification for trying to maintain a reserve army of labor to force the market value of labor down. the next time you witness the suffering caused by unemployment- the next time you see people sleeping on the street, their health failing as the elements take their toll- remember that this was deliberate. rich, powerful people worked hard to make sure that happened. every day they are working to find new ways to hurt you, so that they can buy that second yacht, that third vacation home.