Prof. Richard Wolff: How to Fix Inflation

The Zero Hour has the interview, Prof. Richard Wolff: How to Fix Inflation.

A lot of babble that I can agree with, but some of it I don’t.

My memory of the time of Nixon was what he did not succeed in bringing down inflation. The combination of Paul Volcker and Ronald Reagan succeeded in controlling inflation by creating such a deep recession that people couldn’t afford to buy things anymore. What they didn’t buy included gasoline which broke the power of OPEC.

In Nixon and in Roosevelt’s times we didn’t depend on outsourcing so much to supply consumer demand. We can’t put a price freeze on what China sells us. We can raise the prices of what China sells us by fighting a trade war, but that is the opposite of keeping prices down. We can also fight an economic war with Russia to take their energy supplies out of the market. Our economic war with Russia only makes inflation worse.

As Michael Hudson explains on so many of the posts that I have put on this politics blog of mine, the financialization of the USA economy puts such a debt burden overhead on our workers, that we can no longer compete in the international market for labor.

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