Friday, July 29, 2022

 

8 billion humans? Population is a difficult conversation, but we need to start getting real

It’s time to rethink our broken and unfair family planning systems.


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July 11 was World Population Day, an observance established by the United Nations aiming to highlight population issues, particularly how the human population relates to the environment. The UN’s Department of Economic and Social Affairs (UNDESA) marked the occasion by releasing its World Population Prospects 2022 report, which announced that the global human population is on target to reach a new milestone: 8 billion people on the planet by November 15, 2022.

While this staggering figure should alarm even the most casual observer of the various environmental and health crises stemming from the overpopulation that is emblematic of the Anthropocene—like climate change, deforestation, ocean acidification, food and water shortages, plastic pollution, air pollution, biodiversity loss, and the sixth extinction—the UN has advanced a false narrative, trumpeting the “story behind 8 billion and how we’ve got here… [as] a story of triumph,” saying that reaching this milestone is “a cause for celebration” with “infinite” possibilities for growth.

“We must celebrate a world of 8 billion people,” writes Dr. Bannet Ndyanabangi, the East and Southern Africa regional director for the UN Population Fund, the UN agency tasked with improving reproductive and maternal health. Others are picking up that upbeat messaging.

The truth is that growth is undoing the progress we made in our response to the climate crisis. Also, our near-universal family planning systems have been based on a lie—that having kids is more personal for the parents than interpersonal for the future child, our communities, and our planet—a lie that maintains the generational privilege of the wealthy, and promotes unsustainable growth over birth entitlements that would have ensured all kids were born in conditions that comply with the United Nations Convention on the Rights of the Child (UNCRC).

The interrelated ecological and public health crises facing humanity and the planet—fundamentally driven by the Anthropocene and the population growth that defines the era—have already been causing massive harm to countless species, including people, and perhaps most problematically, children who will carry with them lifelong impacts. And we are on track to make things even worse. “The effects of human-caused global warming are happening now, are irreversible on the timescale of people alive today, and will worsen in the decades to come,” warns NASA.

We will add billions more people to this catastrophic scenario—around 10.4 billion by 2100—with the UN itself projecting widespread famine. According to the UN Food and Agriculture Organization’s (FAO) the State of Food Security and Nutrition in the World 2022 report, around 670 million people (8 percent of the world population), are expected to face hunger by 2030. Sadly, as FAO points out, that figure is the same figure from 2015, when the goal of ending hunger, food insecurity, and malnutrition by the end of this decade was launched under the 2030 Agenda for Sustainable Development. Over this 15-year period, humanity would have made zero progress in the fight to end world hunger.

More people, more inequality

Another concern is that the multitude of environmental and health impacts are not shared equally but depend on hard-to-grasp levels of inequality. Moreover, as the UN reports, inequality is growing for “more than 70 percent of the global population.” The people least responsible for the climate crisis—the poor and the vulnerable—are set to suffer the most, and yet the rich world is pushing for more humans that will exacerbate the crisis, with abortion bans on the rise across the United States, and wealthy nations like Australia, Estonia, Finland, Italy, and Japan offering their citizens financial incentives to have more babies.

Even the Pope doesn’t grasp the reality of our situation. In his 2015 encyclical Laudato Si’, the pontiff lamented ecological degradation and global warming, writing that Mother Earth “cries out to us because of the harm we have inflicted on her by our irresponsible use.” Yet he has failed to recognize that unchecked human population growth is not only damaging to the environment but also to the welfare of future generations. That failure is made clear by his encouraging young people to have more children.

Failed family planning

Designed in the 20th century, near-universal family planning models and systems treated the act of having children as personal rather than interpersonal, which caused human and societal growth to arc too high for the planet’s carrying capacity. Currently, humanity is using 1.8 times the ecological resources that the Earth is able to generate in a single year. This year, according to the Global Footprint Network, humans will hit “Earth Overshoot Day” on July 28. Put it another way, the current human population is so high that we need the resources of 1.8 Earths to sustain us for just one year.

The world’s broken family planning models have prevented a fair distribution of wealth among children, in particular, protecting pockets of extreme wealth and privilege and ensuring the gulf between rich and poor we see today. While many laud the UN Convention on the Rights of the Child, which ensures the protection, survival, and development of children without discrimination, the fact is that world leaders have never applied it to the majority of children or to future generations as a standard for birth and development conditions. Billions were born over the past several decades in conditions that blatantly violated the convention’s standards—standards we recognize as universal to develop functional societies. They were born under the myth that whether a child is born rich or poor was determined by fortune or the will of some invisible force.

What went wrong? Past models viewed children as economic inputs to grow economies, rather than empowering them to become citizens to run the town halls that must precede and regulate economies. The impact was existential: It is now a zeitgeist to see falling fertility rates as a “baby bust” or threat to economic growth and the further commodification of nature, the children’s convention be damned. The UN’s World Population Day rhetoric reflects this old modeling, and deference to the wealthy who wish to provide an advantage for their own kids. This old modeling—treating the act of having children as more personal than interpersonal—is based on what legal theorists call a baseline error.

Externalizing costs to women and children

Many companies and governments worked together to adopt the Paris Agreement as the key standard for climate policy. It allows for significant emissions and global warming despite current changes in the climate causing massive harm to infants and children. The entities behind the agreement were making decisions about what the world should look like. And that vision, for them, sets a baseline against which to measure what’s the cost and what’s the benefit.

There is something wrong with that picture. If you believe in freedom under any theory of liberalism, it’s impossible for a group of people to define what the world should look like for everyone. The baseline, or what the world should look like, is instead itself a group of relatively self-determining (i.e., free) people. How can we know what’s the cost or the benefit, or the rules that allocate them, without being organized as participatory groups capable of making such decisions? How can we be self-determining or free in a world dominated by a singularly anthropocentric viewpoint in which some humans consent to the power of other humans, rather than a more logical and ethical nature-centric viewpoint?

Population growth-based economic gains were created by intentionally violating the standards represented in the UN Convention on the Rights of the Child, ensuring children would be born and raised in unfair and unequal conditions. A small minority of mostly wealthy white men have waged a war on women’s health, made abortion less accessible, and profited by externalizing massive costs on women and children decade after decade.

In short: 1) Humans overshot, 2) the profits went to some and costs to others based on the lie that having kids was more personal than interpersonal, and 3) justice requires we compensate those harmed.

Finding a solution

What can we do? First, we can pressure the UN to switch to nature- and child-centric family planning model as the first and overriding human right. We can give future generations a voice in their democracies, rather than just jobs in economies. Democracy—the only form of true empowerment—comes first, and groups are already asking the UN to move in this direction. The voices of young women from the Global South, some of whom are most at risk, are rising, speaking about their concerns for their future and the future of the world.

One step toward better, more sustainable, and equitable family policies involves resolving the baseline error discussed above and urging the Global North to make just climate reparations to the Global South that—rather than focusing on population—ensure that we begin moving toward a system in which all children are born into conditions that comply with the UNCRC.

The climate crisis is already causing lifelong harm to infants and children, harm that must be stopped and compensated for. Given the efficacy of family planning and climate migration reforms, one option would be family planning incentives or entitlements or reparations that will allow parents to best provide their children with the ecosocial rearing and development conditions required by the UNCRC. These payments can be funded by eliminating expensive and counterproductive pro-natal incentives (as well as expensive limits on programming for long-acting reversible contraceptives and access to abortion) in low-fertility countries in favor of climate migration reforms. Any incentivizing effect the payments might have toward large families can be offset by the universal promotion of a “smaller and more sustainable” family ethic.

We can also urge lawmakers, decision-makers, and thought leaders to publicly admit that conventional family planning models—built on a baseline error—are broken because they miscalculate the way costs and benefits are measured. We must ultimately recognize that the wealth of many was built on a system of explosive and unsustainable growth at a great cost to children, a cost that increases as the climate worsens. Because that wealth was produced under a system that externalized its costs, disadvantaged children have a moral and legal claim to part of the wealth that was accrued at the expense of their current and future health and the environment in which they live. This is a form of restorative justice. Without this change, we risk a future where the system by which many made their wealth will have done more harm to future generations than any well-intentioned philanthropy can do to help them.

Time to recalibrate, not celebrate

Voices in the Global South—those with the most at stake and the least responsible for the crisis—are now joining in the call for family planning-based entitlements and reparations. It’s a just demand that will compel many to action. There are many steps we can take to recognize that something went wrong in our universal family planning and population policies and to move toward better modeling. Nothing would have a greater impact on a larger number of people.

Population expert Alan Weisman, the author of the best-selling book The World Without Us, spent two years visiting 20 countries to investigate the issue and impacts of human population growth. In an interview with Orion Magazine, he said that one of the questions he set out to answer was, “[H]ow many people can fit on the planet without tipping it over?” If we don’t fix our broken and unfair family planning systems, we will soon find out.

In 1989, when the UN established World Population Day, there were 5.1 billion humans on Earth. Since then, more than 2.5 billion humans have been added. (To put that into perspective, over the 140-year span from 1800 to 1940, we added just a little over half of that number—1.3 billion people—to the population.) As the Earth approaches its 8-billionth human, we don’t have “infinite” possibilities for growth, as the UN claims. Instead, we have infinite possibilities for environmental degradation, attacks on reproductive rights, and public health crises. It is not time to celebrate, as the UN urges. Instead, it is time to recalibrate around the ecosocial birth and development conditions that the UN Convention on the Rights of the Child has long required.

This article was produced by Earth | Food | Life, a project of the Independent Media Institute.


Carter Dillard is the founder of HavingKids.org. He served as an Honors Program attorney at the United States Department of Justice, and served with a national security law agency before developing a comprehensive account of reforming family planning for the Yale Human Rights and Development Journal. He has begun to implement the transition to child-centric “Fair Start” family planning, both as a member of the Steering Committee of the Population Ethics and Policy Research Project, and as a visiting scholar of the Uehiro Center, both at the University of Oxford.

Climate ‘leader’ Netflix donated to pro-pipeline, Koch-supported think tank

The Macdonald Laurier Institute then bragged about pushing a massive tar sands expansion.


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Netflix gives every impression of being one of the world’s most climate friendly corporations. 

The streaming company responsible for the blockbuster climate movie “Don’t Look Up” starring Leonardo DiCaprio and Jennifer Lawrence plans to slash or offset all of its corporate greenhouse gas emissions by the end of 2022, a goal known as net-zero.

Netflix is producing and providing a platform for documentaries, TV series, and feature films educating viewers about the climate crisis — about 160 million households globally watched one of these stories in 2020, according to the company.

“The film industry needs a leader when it comes to climate action,” Katharine Hayhoe, a chief scientist at the Nature Conservancy who belongs to an independent advisory group of experts for Netflix’s sustainability plan, has said. “I’m thrilled at how Netflix is taking on this leadership role.” 

But away from the public eye there is one area where Netflix is anything but green.

The company has donated to a rightwing think tank in Canada that has also been supported financially by the Canadian Energy Pipeline Association, the Exxon-owned tar sands producer Imperial Oil, and the Charles G. Koch Foundation, an organization linked to Koch Industries.

Known as the Macdonald Laurier Institute, this Ottawa-based think tank boasts of having “great influence” in pushing forward a massive tar sands pipeline expansion called Trans Mountain. That project’s greenhouse gas emissions could far eclipse any carbon reductions that Netflix promises in its “net-zero” plan.

The Macdonald Laurier Institute is a relatively new think tank. Founded in 2010, its board of directors and advisors come from some of the top legal, lobbying and financial firms in Canada. It is also a member of the Atlas Network, a U.S.-based coalition whose hundreds of partners worldwide include the Cato Institute, a libertarian think tank co-founded by Charles Koch.

The Macdonald Laurier Institute has partnered with Atlas on a campaign to discourage the Canadian government from implementing laws that would give Indigenous communities greater power to push against oil and gas projects on their land.

Netflix is listed as a donor to the Macdonald Laurier Institute in the organization’s 2018 annual report, alongside Imperial Oil, the Atlas Network and several dozen other supporters. “We believe that with your help we will bring Canada closer to becoming the best governed country in the world,” the annual report says of donors like Netflix. 

The Macdonald Laurier Institute, also known as MLI, didn’t respond to questions about the Netflix donation.

This might seem like an odd pairing, because Netflix by some measures is one of the most politically liberal tech companies, and MLI is arguably one of Canada’s most rightwing think tanks. But at the end of the day, Netflix is a large corporation with financial interests that could potentially be served by supporting a think tank that claims it “has been regularly recognized for our influential thought leadership in Canada.” 

“Just because the Macdonald Laurier Institute is seen as more conservative, and Netflix is seen as having a more progressive agenda, doesn’t necessarily mean that their interests don’t align,” Donald Abelson, a professor of political science at the University of Western Ontario who is an expert on think tanks, told DeSmog.

But Abelson cautioned against assuming that Netflix supports MLI’s full political agenda; more than likely, its donation had nothing to do with pipelines. “Let’s say you joined a political party, does that mean you agree with all the policies or platforms that emerge from that party?” he said. 

Netflix’s climate satire ‘Don’t Look Up’ broke viewing records when it was released in 2021. Credit: Netflix

Netflix didn’t respond to questions from DeSmog about the size of its donation or whether it was aware of MLI’s support for Trans Mountain, a pipeline designed to export an additional 590,000 barrels per day from the tar sands. 

The think tank has an entire section about the pipeline in its report naming Netflix as a donor. That section doesn’t once mention climate change and claims that a failure to build Trans Mountain “threatens Canada’s economy.” 

In the year that Netflix donated to the think tank, tensions were increasing over the Trans Mountain project, a 714-mile pipeline expansion connecting the Alberta tar sands to oil-carrying supertankers in the west coast city of Vancouver.

Many environmental groups and First Nations were opposed to the project, and so was British Columbia Premier John Horgan, whose government delayed issuing crucial permits while arguing that the environmental risks of a potential oil spill couldn’t be justified. 

“I do believe we have a mandate to defend the coast,” Horgan said in 2018

Kinder Morgan, the Texas-based company building the expansion, threatened to walk away entirely. All this constituted a “nightmare” to the Macdonald Laurier Institute, which argued in a report that “the attractiveness of Canada as a place for major investments is at stake.”

In May 2018, a senior fellow at the institute named Dwight Newman testified to Canada’s Senate, where he argued that the federal government had the legal authority to override environmental opposition to the pipeline in B.C. “Canada does have the legislative powers to get this project done if there is the will to do so,” Newman said

Two weeks later, Prime Minister Justin Trudeau announced that the federal government would pay $4.5 billion to buy the pipeline from Kinder Morgan, effectively nationalizing the project. Trudeau called Trans Mountain “a vital project in the national interest” in a tweet, just one day after his government had declared a national “climate emergency” in Canada.

The Macdonald Laurier Institute was thrilled about the role it played in the pipeline fight. It claimed in its 2018 annual report to have shaped “government efforts to deal with the constitutional issues surrounding Trans Mountain,” adding that, “We have been at the forefront of efforts to chart a way out of the pipeline impasse.”

The Macdonald Laurier Institute didn’t say in its report how much money Netflix donated that year. But it is possible to quantify the climate damage that will be caused by Trans Mountain. 

The pipeline, whose cost has now risen to CAD $21.4 billion, could result in up to 15 million tons of greenhouse gases released into the atmosphere annually once it’s completed in 2023, according to calculations by Environment and Climate Change Canada.  

Netflix, by contrast, is now promising to cut or neutralize roughly 1 million tons of greenhouse gases related to its operations by the end of the year. 

Trans Mountain threatens to wipe out those climate gains entirely. 

Geoff Dembicki is an investigative climate journalist based in New York City. He is author of The Petroleum Papers and Are We Screwed?

Why workers are turning to unions

Besides fighting for better wages and working conditions, unions confront favoritism and discrimination when no one else will.


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Image Credit: Seth Perlman/AP

Amy Dennett long endured understaffing, low pay and indifferent bosses in her job at the American Red Cross in Asheville, North Carolina.

But she decided she’d had enough when management’s failure to provide basic resources forced her and her coworkers to build, jury-rig and dig into their own pockets for items needed to operate the blood donation center.

Dennett helped lead a union drive in 2020, resulting in the group’s vote to join the United Steelworkers (USW), and the 24 workers gained raises, greatly improved health care and much-needed equipment even before signing their first contract.

More and more workers like Dennett are realizing that unions fight for them every day, providing a path forward even in tumultuous times like a pandemic.

Gallup surveyed Americans on their confidence in 16 U.S. institutions ranging from the Supreme Court to television news. Over the past year, Gallup found, Americans’ confidence fell in all of them except one—organized labor.

“That doesn’t surprise me. We’re supposed to have faith in our elected officials and other leaders. But it’s a lot easier for a worker to have faith in the guy standing next to them than a guy in some other place you’ve never met who’s supposed to represent you,” Dennett said of the findings, noting that unions helped workers during the pandemic while many of the 16 institutions failed or exploited them.

With the help of a lone Democrat, for example, the Republicans in Congress killed legislation that would have expanded struggling families’ access to education, health care and child care.

Some banks socked borrowers with illegal late fees and charges despite their enrollment in a pandemic program temporarily pausing mortgage payments, compounding the homeowners’ hardships.

Corporations jacked up prices on food and other essentials, raking in ever-higher profits on the backs of working Americans. And tech companies like Amazon and Apple tried to beat back workers’ fights for better wages and working conditions.

In stark contrast to all of this, unions stepped up during the pandemic because their members needed them more than ever. They not only empowered workers to secure the personal protective equipment, paid sick leave and affordable health care they needed to safeguard their families but also continued winning the raises and benefits essential for years to come.

Those successes drove Americans’ support for unions to record levels and unleashed a wave of organizing drives among workers who put their lives on the line to keep companies operating during the pandemic.

“These workers have figured out, ‘Hey, I’m essential. I deserve to make enough to pay my bills,’” Dennett said, noting the USW “absolutely changed the dynamic” in her workplace.

Once “blatantly ignored,” she said, workers now have a seat at the table. And no longer do Dennett and her coworkers have to build their own organizers for tape and Band-Aids or scrounge parts for items like television assemblies.

“We ended up with the equipment that we need,” explained Dennett, a collection specialist, noting her coworkers now have quality computer carts like the one she had to buy for herself a couple of years ago.

The USW also represents Red Cross workers in Alabama and Georgia. When a cost-of-living analysis revealed the urgent need for raises in some of those locations, Dennett and her underpaid colleagues also received pay bumps, even before completing their first contract.

Workers’ demand for union representation cuts across all economic sectors, from manufacturing and retail to emerging clean industries and professional sports.

Players in the new United States Football League (USFL) recently voted to join the USW to ensure adequate housing, meals and health care, among other essentials, and to guard against the kinds of nightmares that followed the collapse of the Alliance of American Football in 2019.

That league folded overnight, stranding players in the cities where they were playing.

“There was no transportation home,” explained Kenneth Farrow, president of the United Football Players Association, which advocates for USFL players.

Farrow said the Alliance players got kicked out of their hotels, had to fund their own flights and rental cars and got stuck with ongoing medical expenses for game-related injuries. “There have been quite a few ugly situations,” he said, explaining why the USFL players wanted a union.

Besides fighting for better wages and working conditions, unions confront favoritism and discrimination when no one else will.

With the support of other unions, USW Local 7600 took a stand last year on behalf of thousands of members working at Kaiser Permanente health care facilities in the Inland Empire area of Southern California.

The union challenged Kaiser’s practice of paying those workers, many of them people of color, significantly lower wages than their counterparts performing the same jobs at the health care giant’s locations elsewhere. Some of the Inland Empire workers made 30 percent less than peers in Los Angeles and Orange County.

Kaiser tried to blame the pay gaps on a higher cost of living in Los Angeles, an excuse that fell flat with the USW members.

“I’m from LA. It’s not that much higher,” said LaTrice Benson, an anesthesia technician affected by the disparities.

In the end, Kaiser agreed to commit millions to closing wage gaps for the USW members as well as workers represented by other unions.

“It means the world to me and my colleagues,” Benson said. “We’re sincerely thankful for our union.”

Dennett sees the growing appreciation for organized labor even among the blood donors she works with every day. When she tells them she joined a union, she often gets the same response: “Congratulations.”

This article was produced by the Independent Media Institute.

Recession Fears Spark Calls to Stop Hiking Interest Rates and Rein In Corporate Greed

"As Americans stare down the abyss of a potential recession, Fortune 500 c-suite executives are doing better than ever," noted one critic, "while their workers' wages have severely lagged behind."



Demonstrators rally in front of PhRMA's Washington, D.C. office to protest high prescription drug prices on September 21, 2021.
(Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images)


JESSICA CORBETT
July 28, 2022

As new government data on Thursday stoked fears of a looming recession—and even led to some claims that the nation is already experiencing one—progressives renewed calls for the Federal Reserve to stop hiking interest rates and policymakers to take on the corporate profiteering driving inflation.

"Reining in corporate greed is the key to bringing down costs for families and kickstarting economic growth."

The Bureau of Economic Analysis at the U.S. Department of Commerce released gross domestic product (GDP) figures that show two consecutive quarters of negative growth, which prompted some Republican lawmakers—hopeful to regain control of Congress later this year—to declare that "America is in a recession" and it is the Democrats' fault.

While two straight quarters of negative growth is often seen as a signal of recession, it is not that simple. Harvard University economist Jason Furman pointed out on Twitter Thursday there is "well over a 50% chance that Q1 and/or Q2 gets revised to positive."

"That's part of why NBER doesn't rely on advance GDP to call recessions," Furman added, referring to the National Bureau of Economic Research.



Alex Durante, an economist with the Tax Foundation think tank, told The Hill that "there's this perception, and people are not wrong to have it—it's probably even in my economics textbook from college—that it's two negative quarters of GDP that NBER uses to determine if there's a recession. That's actually not completely true. It actually looks at a wide variety of economic indicators to make that designation."

"They'll look at employment, personal income, durable goods, housing permits, so the GDP is certainly part of it, but they're looking at other indicators, as well," Durante explained.

As Dean Baker, senior economist and co-founder of the Center for Economic and Policy Research (CEPR), detailed Thursday:

The modest drop in GDP reported for the quarter is not good news, but it was hardly a surprise. It also was entirely due to inventory quirks, which will not be repeated in future quarters. Consumption is still growing at a respectable pace, as is investment.

The Fed has been raising interest rates ostensibly out of concern that the economy was growing too fast, causing inflation. This report should help to stem those fears. While people are apparently not so concerned about a recession to keep themselves from taking trips and going to restaurants, they are still not spending down their pandemic savings. The sharp drop in the inflation rate reported in the core [Personal Consumption Expenditures] deflator should also alleviate concerns about a wage-price spiral.

CEPR co-founder and co-director Mark Weisbrot argued in a Thursday opinion piece for MarketWatch that the Fed—which on Wednesday hiked interest rates for the second straight month—will be to blame if there is a recession.

"As many economists have noted, the vast majority of the increase in inflation that we have seen over the past 18 months has been a result of external shocks, most important the war in Ukraine, which has raised food and energy prices (the CPI energy index rose 41.6% over the past year from June); and the economic disruptions caused by the pandemic," Weisbrot wrote.

"Some of these prices have begun to reverse; and in any case it's difficult to see how the Fed's interest rate hikes are going to lower these prices, as Fed Chair Jerome Powell stated last month," he continued.



Critics of the Fed's interest rate hikes—from Sen. Elizabeth Warren (D-Mass.) and Rep. Pramila Jayapal (D-Wash.) to economists who formerly served in the federal government like Robert Reich and Claudia Sahm—have called on the central bank to rethink its approach, and some have taken aim at Powell.

Rakeen Mabud, chief economist and managing director of research and policy at the Groundwork Collaborative, said Thursday that the "GDP report makes it crystal clear that Jerome Powell is willing to push millions out of work and throw away our economic recovery in the name of an arbitrary 2% inflation target he doesn't even believe he can hit."

"We can all agree that fighting inflation should be a top priority," she added, "but asking the workers and families who have been hit hardest by rising prices to also bear the brunt of a potential recession is not just cruel—it's bad policy."

The GDP report came less than 24 hours after Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Joe Manchin (D-W.Va.) announced the Inflation Reduction Act, compromise legislation on climate, healthcare, and taxes. While some progressives have concerns about the specifics on climate, others called on congressional Democrats to swiftly pass the budget reconciliation package, which follows months of obstruction by Manchin.



"Sky-high inflation is a major contributor to the economic slowdown, and nothing is driving up costs more on everyday families than corporate greed," said Kyle Herrig, president of the government watchdog Accountable.US, in a statement Thursday.

"Across industries, we've seen major corporations continue to post record high profits and approve billions of dollars in shareholder giveaways while disingenuously claiming to have no choice but to raise prices so high," he noted. "As Americans stare down the abyss of a potential recession, Fortune 500 c-suite executives are doing better than ever, averaging over $18 million in compensation while their workers' wages have severely lagged behind."

According to Herrig:

Reining in corporate greed is the key to bringing down costs for families and kickstarting economic growth, and fortunately Congress has the opportunity [to] do it. Passing the Inflation Reduction Act will ensure corporations will finally begin to pay their fair share in taxes. This bill will put billions of dollars more into the pockets of Americans by reducing the leverage Big Oil, health insurance, and drug companies have to charge whatever they please—all while creating thousands of new jobs. Congress must not squander the best opportunity they may have for years to create an economy that works for everyone, not just billionaires and greedy corporations.

Unrig Our Economy campaign director Sarah Baron similarly asserted that the legislation "is a significant step towards combating corporate greed and making an economy that works for working people," highlighting the same provisions as Herrig.

"The vast majority of Americans rightly blame corporate greed for driving inflation, so it is heartening to see Democrats unite around a bill that addresses the issue at its source," Baron said. "As the bill is considered by Congress, Unrig Our Economy urges all members to decide where they stand—with corporations or with the hardworking constituents they were elected to represent."

Groundwork Collaborative executive director Lindsay Owens also backed the bill, saying that "the Inflation Reduction Act gets it exactly right: We bring down costs for families by making needed public investments, not pulling back on spending when we need it most."

"We bring down energy costs when we invest in clean energy and lessen our dependence on Big Oil profiteers. We bring down healthcare costs when we use public power to counter Big Pharma and get a fair price for seniors. And we strengthen our democracy and our economy when the largest corporations contribute to these investments, instead of buying politicians to oppose them," she added. "Congress should send the Inflation Reduction Act to the president's desk as quickly as possible."

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The Fed Will Be to Blame if the Economy Crashes Into a Recession

We don't need a recession—which would be devastating—to solve our inflation problem.



The U.S. Federal Reserve building in Washington, D.C. on June 22, 2022. U.S. Federal Reserve Chair Jerome Powell said Wednesday that the central bank is trying to bring inflation down without inflicting too much damage, but the Fed's aggressive rate hikes could tip the U.S. economy into recession. (Photo: Liu Jie/Xinhua via Getty Images)

MARK WEISBROT
July 29, 2022
 by MarketWatch

The Federal Reserve's interest rate policy is one of the most important economic decisions that our government makes. If it were more widely understood, and the Fed were held more accountable, Fed officials would probably be more careful about the downside risks of raising interest rates too much.

A Fed that is overly aggressive in raising interest rates is expanding and solidifying the structures of inequality in the American economy, as it has done previously for decades in the past.

People talk about the Fed not being able to bring the economy in for a "soft landing" when inflation is too high. But when the Fed gets it wrong, and pushes the economy into a recession—as it has done in ending the vast majority of economic expansions that have taken place in the United States since World War II—it's not like a couple of bumps on the runway. It's more like a plane crash. Millions of jobs can be lost.

The Fed raised interest rates FF00, 0.00% another 0.75 percentage points Wednesday, continuing its most aggressive monetary tightening in four decades. How far will this go?

The "inflation hawks," e.g. economist and former Treasury Secretary Larry Summers, say that if "inflation is to be contained, unemployment is likely to rise to somewhere in the vicinity of 6% or more." And he appears to be talking about a recession. The difference between even 6% unemployment and the 3.6% we have today is more than 3.9 million jobs.
No inflation spiral expected

Why should anyone sacrifice the future of so many people? The argument is that inflation will otherwise become permanently higher, or even spiral out of control.

But the economists who, with many millions of dollars of resources, produce the most reliable estimates of future U.S. inflation, tell a different story. The International Monetary Fund (IMF) this month projected 3% inflation for 2023. The Organization for Economic Co-operation and Development is projecting 3.5%. And the Federal Reserve itself, in June projected 2.6% for 2023.

Few economists would be scared of these levels of inflation for next year. But the inflation hawks have offered us more to fear than fear itself. What if we have an "inflationary spiral," in which there is some self-reinforcing mechanism that drives inflation continuously upward into dangerous territory?

The most popular version of this is a wage-price spiral, where rising prices cause workers to demand—and somehow get—higher wages, which leads to higher prices and so on. But clearly that is not the world we are living in. Wage growth has fallen from a 6% annualized rate at the end of last year, to just over 4% for recent months. So, there is no wage-price spiral, nor evidence that we are headed in that direction.

Scary scenario B is about expectations: if people or markets begin to increase their long-term expectations of what future inflation will be, that can also spiral upward as prices rise. But that has not been happening either.

The 5 year break-even rate, which is used as a proxy for market inflation expectations, has been about 2.6% since the start of July; about the same as it was a year ago.
Solidifying inequality

It is well established that lower-wage workers and Black workers are hit much harder by recessions in terms of both unemployment and lost income. Conversely, in years when the economy is closer to full employment, wage gains are proportionately greater for the lower-paid sectors of the labor force.

So a Fed that is overly aggressive in raising interest rates is expanding and solidifying the structures of inequality in the American economy, as it has done previously for decades in the past.

As many economists have noted, the vast majority of the increase in inflation that we have seen over the past 18 months has been a result of external shocks, most important the war in Ukraine, which has raised food and energy prices (the CPI energy index rose 41.6% over the past year from June); and the economic disruptions caused by the pandemic. Some of these prices have begun to reverse; and in any case it's difficult to see how the Fed's interest rate hikes are going to lower these prices, as Fed Chair Jerome Powell stated last month.

At the press conference Wednesday, Powell said that "having a soft landing is what we're aiming for" but added: "at the beginning we said it was not going to be easy. It was going to be quite challenging to do that. It's unusual. It's an unusual event. It's not a typical event, given where we are."

But the Fed has not explained why a "soft landing"—avoiding a recession—would be so difficult. We do not have a giant real estate bubble as in 2006, or a stock market bubble as in the late '90s. Both of these were so large that it could be shown in advance (and it was shown) that they were unsustainable and capable of causing a recession when they burst.

This time, it's just the Fed's interest rate hikes that are threatening to cause a recession. The Fed should be able to make sure that it doesn't make that mistake.

Copyright © 2021 MarketWatch, Inc.

Mark Weisbrot is Co-Director of the Center for Economic and Policy Research (CEPR), in Washington, DC. He is also president of Just Foreign Policy. His latest book is "Failed: What the "Experts" Got Wrong about the Global Economy" (2015). He is author of co-author, with Dean Baker, of "Social Security: The Phony Crisis" (2001).
Debunking Four Myths About Inflation

Higher prices are not being driven by wage increases. They were not driven by federal assistance to people during the pandemic. And Democrats aren't to blame.



People shopping in the egg and dairy case on March 13, 2020 at Whole Foods Market in Vauxhall, New Jersey. (Photo: Rich Graessle/Icon Sportswire via Getty Images)

ROBERT REICH
July 29, 2022 by RobertReich.org


The truth about inflation is getting covered up by countless myths spewed by corporations and their political lackeys.

Here are the facts:

Fact #1: Inflation is not being driven by wage increases

Although wages have been rising, they've been rising more SLOWLY than prices. Hourly wages grew by 5 percent in the past year—but prices rose 8.6 percent. This means, when you adjust for inflation, workers actually got a 3.5 percent pay cut over the past year.

Fact #2: Corporate profits are one of the main drivers of inflation

Corporations are raising prices above what's needed to cover their higher costs. These mark-ups have soared. Corporations are getting away with this price gouging because they face little to no competition. And they're using the specter of inflation as a cover.

Last year, corporations raked in their highest profits in 70 years. One recent study found that over half the increase in prices we've been experiencing can be attributed to fatter corporate profits.

Fact #3: Federal assistance to people during the pandemic did not overheat the economy

Most families—who haven't had a real wage increase in years—used the assistance to pay down debt or save for the future. The assistance was barely enough to keep working families afloat.

Fact #4: Inflation is not the result of President Biden's or Democrats' policies


Republicans want to blame them for rising prices. But Democrats have tried advancing bills to bring down prices and address corporate price gouging, yet Republicans and a handful of corporate Democrats refuse to pass them.

So don't fall for the corporate myths about inflation.

Higher prices are not being driven by wage increases. They were not driven by federal assistance to people during the pandemic. And Democrats aren't to blame.

Inflation is being driven in large part by record corporate profits. The best way to fight it is to remove corporate incentives to raise prices through a windfall profits tax. And reduce monopoly power through tougher antitrust enforcement.

Know the truth.

Watch: