The Federal Reserve Wants To Lower Your Paycheck

[NightskyeB4Dawn]

I heard about this from Russell Brand. And I agree with him that this may indeed be the straw that breaks the camel's back.

Federal Reserve chair and former private equity exec Jerome Powell has promised to tackle inflation by lowering workers’ wages. At the same time, he has declined to implement a law to reduce the skyrocketing paychecks of his former colleagues on Wall Street.
https://jacobin.com/2022/06/federal-rese...-inflation

I was visiting with a friend earlier this week and she was lamenting that her 24 year old son, won't get a job. I asked her why he needed a job. I pointed out that he does not need money. He has everything he wants. He gets up when he wants to. He goes to bed when he wants to. He eats when he wants to. She takes him any place he wants to go. I asked her, what was his incentive to get a job. He has none.

I ask this same question in the opposite direction. Why would anyone get up and go to work for a company that is paying them less money for the work they do? Why would anyone work more for less, when all their expenses is increasing across the board. They are pricing people out of their homes, making food and gas hard to obtain, and I guess it just is not disintegrating fast enough. So down with the hammer? Cut your wages. Yep, that is the ticket.

If you are going to have to accept the fact that you will have to do without, even if you are working hard, at some point it makes very little sense to continue to work for less, only to get less.

[ChiefD]

Spot on! I totally agree on both points. If an adult is living with a parent that is giving them whatever they want and not asking anything in return, that is just messed up. Said parent(s) need to pull themselves up by the bootstraps and give that lazy adult an ultimatum. Not easy, but it should be done.

Also, on your second point, I believe that is why so many people are quitting their jobs and looking for something where they will be paid decently and treated with a modicum of respect. The Great Resignation is very real, and is impacting so many things in this country.

[ABNARTY]

The Fed will raise their rates. Economics 101 states that will increase unemployment for some time. Per the Chairman, he wants ~%5 unemployment for 5 years or ~%10 for a year. Never mind that's millions of people.

Inflation is the enemy they created by printing trillions of dollars and injecting it into Wall Street in the insane belief it would not make its way into the economy. Gotta' protect those portfolios. We all see how that worked out. 

The part that gets me the most angry is the attitude of the DC/media class on the matter. Blame the citizens who had no say in the matter. "Just get used to it. Be happy you still have a job. Try eating less meat. Ride the bus. Skip health care for your pets." 

How about STFU! Congress is AWOL and the President is a elder abuse victim. There is no help coming from them. Matter of fact, they helped get us here in the first place. So, I guess I would not want any more "help" from them.

ETA: Good, quick video on supply side problems with raising rates.

[Ninurta]

I ask this same question in the opposite direction. Why would anyone get up and go to work for a company that is paying them less money for the work they do? Why would anyone work more for less, when all their expenses is increasing across the board. They are pricing people out of their homes, making food and gas hard to obtain, and I guess it just is not disintegrating fast enough. So down with the hammer? Cut your wages. Yep, that is the ticket.

If you are going to have to accept the fact that you will have to do without, even if you are working hard, at some point it makes very little sense to continue to work for less, only to get less.

EXACTLY!

That is why labor unions have never made any sense to me. They say " there is more power in collectively bargaining", and I can't see that. I believe there is far more power, personally, in saying "pay me what I'm worth, or shove this job up your ass" and walking away to find a job more in keeping with your own abilities and needs.

Both I and Grace have used that approach, and in every single case but one, it was less than 24 hours before the boss was on the phone or at the door saying "ok, let's talk".

I don't need to pay dues to no stinkin' union to exercise my power... especially when those dues all go to support politicians that I would not support on my own.

And now, with this "wage reduction"  - good luck with that. I don't work for wages, and you can't reduce what ain't there to be reduced.

So they can kiss my ass, too.

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