Jeff Bezos steps up feud with the White House over inflation, arguing prices would rise even higher if Biden's economic agenda passed

  1. It looks like this post may have political content. Remember that this subreddit is for sharing and discussing economic research and news from the perspective of economists. Please focus on the economic content of the link and avoid off-topic discussion.

  2. Here's a thought. Don't raise prices and wait it out. If I hear record profits one more time I'm going to fucking put my fist through a wall.

  3. Record money harvesting. They got to take all the money the government gave out. Artificially creating monetary kings.

  4. Well, if real growth was 0 and there was a high rate of inflation, a company would have nominally record profits every year...

  5. I don't know why reddit doesn't understand that "record profits" is a massively common thing DUE to inflation. And not because of greed.

  6. The whole "record Profits" thing is so bogus. Pick five random companies and look up their profits for the past 10 years or so. Most of those years were "record profits" because companies grow. 2021 was unique for two reasons. 1. People had a ton of pent up money from not traveling and eating out in 2020. 2. Two stimulus checks. Take those two things and then add in inflation and it would be shocking if companies didn't have record profits.

  7. Funny how quickly people on this thread start complaining about Biden and the government instead of realizing that obviously Bezos is sowing dissent on BBB because he doesn't want to pay his fair share of taxes.

  8. Ya ...I'm more "so the billionaire who rides a peen into space woth a cowboy hat during a pandemic doesn't like a thing? I believe we must absolutely need that thing"

  9. I mean, most of the tax policy in the BBB was pretty subpar, but it wouldn’t have impacted Bezos much at all (unless it’s through Amazon, which would’ve been largely impacted)

  10. Tweet looks to me like Bezos is just pointing out that inflation and corporate tax rate have little direct effect on each other, which is fairly true, but nobody seems to want to actually debate that in this thread...

  11. The current way of fighting inflation (raising interest rates) puts Bezos in a place of losing tens of billions of dollars (and already has).

  12. Before the trickle down nonsense started one income could support a family, housing was reasonably priced, as were cars. Giving rich people more money in their pocket is destroying the middle class. My house increased in value by 55% in five years. That’s ridiculous. We will be a nation of renters, serfs, if we do not start taxing the rich again.

  13. Funny how progressives don't realize that Biden saying "tax the rich" is a pathetic ploy to distract people from his horrible record on inflation.

  14. “It’s your fault the people are poor” Says the evil dragon as he’s sitting atop a mountain of gold and jewels that overlooks the slaves in the mines.

  15. Hey. . . .the governement doesnt require businesses to raise prices based on profit margins. . . . Maybe they could just idk make less money and maintain similar prices based on average income increases.

  16. When people have more money and things cost the same the demand eventually outpaces the supply which is limited by production capacity. When shelves are empty consumers are mad. Then a side market breaks out selling those items for more than retail value because people are willing to buy. Its a no win situation but we’ve seen it play out many times before. Society is setup for the haves and the have-nots

  17. Do you not understand how inflation works? Businesses aren’t just all of a sudden raising prices en masse because they WANT to. Economic conditions mean it’s costing more to DO business. Which means you have to raise prices to keep up, and keep your business open. Kind of like that old adage that raising minimum wage doesn’t really do anything, because said business will have to raise prices to generate the extra revenue needed to pay higher salaries on the same sales. Effectively rendering the pay raise pointless. Prices are rising on everything as a result of Biden’s poor policies. Handing out free money with no limit. Adding to the national debt 10 fold over what it was. Incentivizing people to continue to NOT work. Leading to a national labor shortage. Everything is fucked because this administration is more focused on handing rainbows and butterflies out for free on the tax payers dime over and over again, rather than incentivizing hard work and pulling your own weight to form a strong, functioning society.

  18. Do people really believe the government handing out money for things doesn’t create inflation? The daycare next to my daycare got 350k from the government for covid??? since they had low income kids - they used the whole chunk on playground equipment and then raised their rates since now they have cool playground equipment. No additional day care capacity was created and prices were successful raised along with consumption of unnecessary playground equipment. Bezos isn’t the sympathetic figure to try and push back against the Biden/media narrative/propaganda- but glad this is getting a little attention. The “nationalize everything” conversation is taking off.

  19. Which is why progressives were against giving out PPP loans unconditionally. Yes the Republicans giving out $90 to corporations for every $1 given to the people when most the businesses didn't need it was profoundly stupid.

  20. The government handing out billions to corporations then those corporations having supply chain issues caused some inflation. Then when the word "inflation" was spoken, corporate opportunists raised their prices before experiencing inflation, and wall street speculators increased the prices of commodities.

  21. I think if inflation were truly driven by government "handing out money" and nothing else, you'd see that reflected in companies Financials. I think it's too early to tell, but...its looking like it might be something else.

  22. Exactly. Any government subsidized program just means things will cost more. You think that day care worker is going to keep making pennies when they know you’re getting government aide to send your kid there? We live in a very expensive country.

  23. Unfortunately an entire half of the political spectrum thinks the president has no affect on inflation, energy prices etc

  24. Yes, lots of people believe it. Maybe even the majority here. Although, "believe" might not be the right word because as soon as the issue becomes political most people these days just shut off their brains and repeat what they heard in Fox News\CNN\MSNBC. If you gave them the question on an Econ test they might get it right, but when it actually comes to the real world politics they forget that part.

  25. You’re right we have inflation because of the money given to daycares. Not because trump cut rich peoples taxes by $1.3 Trillion. Or the fact that he gave corporations and other wealthy donors $7.2 Trillion in the space of a week in April of 2020 as “stimulus”. Now if you’re really telling the truth in your anecdote and you believe that’s why we have inflation then you’re not very smart and you probably shouldn’t speak about economics. If you’re lying well then come up with better lies.

  26. Your example is literally “Companies are being greedy and increasing their prices for no reason. FUCKING BIDEN!”

  27. That was an unforeseen consequence of using COVID funds for unintended purposes. the money provided by the government was not intended for the use they decided to give it. Same with all those corporations that used it for stock buybacks, etc. Now we have inflation and is somehow the fault of the government, the same way it was the increased unemployment COVID pay the cause of people “not wanting to work”.

  28. By raise rates do you mean kept up with inflation or doubled the prices? Cause that shit has always gone up every year

  29. They probably raised their rates because they have to pay daycare workers decently now, more than slave wages, after the pandemic and inflation is driving up costs. But Biden is the narrative the right always seems to find more politically convenient, of course.

  30. Daycares allow more parents to enter the workforce more reliably, which reduces inflation. Any spending which increases productive capacity counteracts inflation.

  31. Everyone is self interested. Is anyone surprised? People with money dont want to lose it at the expense of others. People without money want it at the expense of others.

  32. If only Bezos would pay Amazon’s workers a living wage that keeps up with inflation. Once he pays taxes and pays his workers I might care what the oligarch has to say

  33. You do know that Amazon is actually losing money right? I cannot believe how many weird takes we have in a supposedly economy sub.

  34. The government spending is not the most major factor in inflation. It's the supply chain issues. It's very easy to prove as you can see similar levels of inflation in different countries that had different levels of government spending in response to Covid but are suffering the same across the board from supply shocks.

  35. I’m sure a multi-billionaire knows nothing about money, why would we listen to the richest man on the planet when it comes to financials? After all, this is Reddit, so I’m sure all these comments are just about how he could give each person on earth $23 or “single handedly solve world hunger.”

  36. And wat exactly is the plan of the GOP? Because every tax break for the rich has led us right to here. Is certainly hasent helped to stave it off one bit, so truly, what do they actually bring to the table?

  37. Why would anyone still listen to Biden and the current cabinet ? Originally they said no don’t worry there won’t be inflation. They got that wrong. Don’t worry this inflation is transitory. They got that wrong. Don’t worry we’ve peaked. They got that wrong. How many times do they have to get it wrong before the Twitter teenage mob starts to question their benevolent overlords.

  38. The "transitory" nature of inflation was a narrative Jerome Powell, chair of the Fed pushed. Credit where credit is due. Powell was speed printing money into the economy before Biden was president and before we even saw how much egg prices were rising. By all means, clown on Biden for the stuff he has control of, but we are talking about Fed policy here. People need to take their political hot takes aside for a second and read about what the Fed does. Its not a red or blue issue (Powell served under both Trump and Biden). Its a Federal Reserve issue, and our collective ignorance has allowed them to treat our economy like a carnival. (See recent insider trading episode if the overnight reverse repo bonanza if inflation doesnt get you hit and bothered enough.)

  39. So Biden has now pissed off the two richest men in the world. These men control the Washington Post and the other will soon control Twitter. Is he trying to not be reelected? Because that's how you do it.

  40. “Pissing off the richest men in the world won’t get you re-elected.” Fuck, there’s so much wrong with this, America is so broken.

  41. Its almost like Neoliberalism is dead, and before you can try to enact some FDR-like policy as a charade to bring everyone together, you have to get the people behind you in addressing the real underlying problems.

  42. The White House is being dumb here. Obviously corporate taxes have nothing to do with inflation and won’t fix the problem.

  43. Please tell me he isn’t trying for a 2024 election. If so Elon can u compromise and just build a quick refuge on the moon while working on Mars and ban Bezos from both please, not that I want either of them in the running for any office job on this planet but certainly not Bezos

  44. Wait…you’re asking one snake to save you from another? Certainly there is an ancient parable that fully illustrates this folly.

  45. It's almost like all these billionaires are creating demand for goods by increasing prices! If they just left prices low, nobody would buy them!

  46. Everybody would agree with biden's agenda causing all these inflation. I'm sure even biden administration knows this, they just won't admit it and try to lie about it and hopefully people will be stupid enough to believe them so they will vote dems for midterms. Tanking that build back broke bill is so necessary for the economy. Otherwise fed would have to raise rates to 10% or more to tame inflation.

  47. Wrong. You’re an idiot if you think a President who is handling a pandemic that killed a million Americans, a gop that wants to run the US like a religious fifedom for the benefit of the billionaires, Russian invasion of a democratic country, a hurricane that knocked out refinery’s in Texas and they still aren’t fixed yet to bring prices down, hmmm. Sounds like it’s all Biden’s fault to you? How many Americans would be alive if trump encouraged vaccines and mask use in hos party? Many many many. Try to wake up and remember, Biden isn’t the problem. The world is, and he’s doing pretty damn well, all things considered. One reason inflation is so high is because economy is red hot and Biden push through a $1.9 trillion spending plan on infrastructure because that’s what grown-ups do and it’s heated up the economy even more. People are getting raises because they’re not putting up with the bullshit wages bosses used to pay so that drives up prices too because people are making a decent wage now. So you’re full of shit if you think inflation is all his fault.

  48. Bezos just recieved a bailout of 10billion because Blew Organ lost bid for luner lander for @nasa to @SpaceX 170 bil worth then like gates has a family investment fund rumered worth 500 billion Now inflation? Lower prices @jeffBesos

  49. I love how you left all your @s in your comment you copied straight from Twitter, where this kind of blatant misinformation is rampant and completely false.

  50. Yeah it’s just Amazon and bezo’s investments that are affected. Meanwhile I’m paying the lowest prices I’ve ever seen at the local grocery….

  51. If this was a just world the government would be able to nationalize Amazon and stop having to worry about robber baron ass bastards like Bezos but we don’t live in a just world

  52. I’m a little more protectionist than some and if you fix prices with the threat of exemption from the US market, you can probably get what you want from companies. I’m by no means a free market idealist but the companies worth keeping need the US market, that’s where the business is.

  53. Well one day when becoming a billionaire is a crime and we arent allowing these asshats to rape the economy of its wealth, monopolize industry and garner influence at a level unseen before Bezos’s magic penis ship might take him into space on a one way journey. Im all for growth but maybe instead of all the wealth going to one man invest back inti the labor force. Do you need 200 billion as they rape the evonomy

  54. Let prices rise, if Bozo wants to price himself out of the market by all means go for it. If he doesn't want profit margins to decrease, let the free market decide.

  55. We wouldn’t have to raise government involvement if Bezos and other billionaires paid taxes and fair wages. But they don’t. So We The People have to vote and bother government to step in where private sector fails.

  56. i mean fuck it - we already let goddamn Larry Fink set the fed monetary policy that got us into this fuckup. Best way to close it all out is letting Bezos decide what gets passed as law.

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