FZ didn't say anything about the new jobs for Americans generated by the infrastructure bill and inflation reduction act. Americans are being paid to make necessary, overdue repairs. These are well-paying jobs. He fails to mention profit-driven inflation went from 11% pre-COVID to 53% currently. That's companies taking advantage of inflation to increase profits. He didn't talk about the recovered and created 600K manufacturing jobs.
Corporate CEO's are being paid record amounts and corporate profits are at record highs even as they say they need to raise prices to keep up. I see a lot of greed😥
@@heemlo649 Do you understand that 'inflation' can be caused by multiple things, especially monopolies that control the market and are very greedy. The VAST majority of the 'Inflation' is actually 'Greedflation' being deliberately perpetrated by the Conglomerates that control the markets. Example, Beef in the US is provided by a grand total of 3 major meat producers even though there are over 30 'brands'... all of whom are posting RECORD revenue AND PROFITS all the while crying about inflation on their supply chain.. yet they are posting record profits and showing lower production costs in their quarterlies... That's called gouging the consumer and causes inflation.
No Zakaria. The largest expense for Americans and largest part in the inflation Fed reserve inflation index is shelter. The cost of homes, insurance, property taxes and rent has skyrocketed to grotesque levels. Increases in general consumer goods is uncomfortable, but extreme increases in shelter is downright disastrous.
True.. In California , I used to fill up my old Toyota Camry gas tank for $30 in 2019. Everything changed since Bye Den and his Climate Change hoax masters hijacked our Elections in 2020.
It was pointed out: his trade tariffs on China. As economist point out, a modest liberalization of trade could knock 1.3% off inflation from its current 3.5%, essentially achieving the feds target of 2.1%. And yes, Biden shares some blame, he’s kept those tariffs in place to boost domestic manufacturing and climate policy. Me personally, I don’t have a problem with this. We needed to manufacture more things here to insulate us from the volatility in the Chinese manufacturing sector (remember when we ran low on PPE early in the pandemic), and I knew as a result inflation would be higher for longer and planned for it. 🤷♂️
And the DJI is the highest it's ever been. What's wrong with this picture? Prices are absurd. Tent cities are growing. So are home prices and apartment rents. And it just gets worse. Whoever becomes the next president will be blamed for however it ends. Why anyone wants to be president is beyond me.
True, tariffs on Harley Davidsons, bourbon, washing machines, solar panels and raw materials like steel and aluminum are contributing to inflation. But the Bureau of Labor Statistics' most recent numbers (March 2024) identify auto insurance, rent and housing as the three biggest contributors to inflation. I'm not sure how people getting into accidents, landlord greed and homeowners selling their homes are affected by tariffs. Also, Biden did roll back some of the tariffs on steel and aluminum imports from Europe.
So why is he not taking action on price fixers? Why is he maintaining 27% tax on BYD cars import??? Why did he spent10T in 2 years, shut down everything and then open economy with zero interest??? Lol
That's not how it works. Prices rise to the point where profit is maximized and if they rise too high, then profits will decrease. With few exceptions, it''s consumers who drive inflation.
Three resources are connected to the manufacture of goods and services. Oil, gas and electricity. These energy resources have doubled in cost. Everything has gone up due to these three.
The tariffs have been a net bad, but I don't think they are causing current inflation. Tariffs should add a one time bump in the inflation rate, not continue a high rate after the tariffs have already caused the price increases.
the problem are company's they make huge profits and the 0.5 percent of the richest earn huge amounts of cash. in the netherlands they raised the minimum wage and they also send once a year compensation for the high energy prices. company's and the richest should pay a lot more. and the minimum wage should increase a lot too.
That's just not true. They've investigated the companies they claimed were doing that and found nothing. You're of course going to have record profits when the dollar isn't worth a much and making products costs more.
Salads are highway robbery from dominos, just get a large 1 topping at $7.99 comes to like $8.75 give or take based on tax. That said it is a deal for carryout only
There were dozens of armed conflicts while Trump was in office. Interest rates are a factor of inflation. Economy was booming before he took office. Domestic energy was booming before he took office. These aren't things he did but are rather things he didn't screw up.
Globalization helped keep inflation low for the past 20 years. Now it is reversing as geopolitics cloud economic sense. Inflation and interest rates will stay high. US debt problem will get worse.
Lowering interest rate increases the money supply. Every time a bank makes a loan, it literally creates money. If you lower interest rates it stimulates increases in the money supply. That means every dollar decreases in value - Inflation. The Federal Reserve primary control on inflation is regulating interest rates to regulate the money supply.
@@vinceena I'm sure he would. Fortunate we don't live in a dictatorship (for now) where presidents determine banking and monetary policy based on purely political reasons. Countries like Venezuela have tried that with disastrous results like hyperinflation. You do understand that lowering interest rates runs up the printing presses injecting even more dollars into the economy? I believe the term for that is inflation, the thing that people are complaining about these days.
@@dmac7128 Look I don’t like dictatorships any more than you do. I am talking about corporate greed. Where credit cards have gone to 30 percent from 12 percent Stick to the basics. People need relief.
1400 Companies in America increased prices because of all of the pandemic spending by the US Government and putting more money in people's hands. When Corporate America knew that people had more money to spend they just increased prices just for the hell of it.. Remember what Bernie Sanders stated Corporate America had the highest profits ever in the US history during the pandemic and after. At least %50 of inflation was from Corporate America.
Blocking the Keystone XL pipeline, which started during the Obama administration, and Trump pulling out of the PPP are two huge factors that eventually led to the inflation we have today.
What we need is for Americans, both conservatives and libs, to get the money out of politics and impose term limits. No politician is going to fix campaign financing. We have to do it.
@@ElleGen That will never happen. Too busy worrying about culture wars instead of the true emerging threats to the majority of us which are economic and which both parties keep in place.
Fareed Zakaria exposed his extreme ignorance of the causes of inflation. Congress passes spending bills, not presidents. Presidential administrations spend the money that by law Congress has allocated. Between January 2020 and June 2022, the Federal Reserve Bank increased the money supply by $6 trillion--a 41% increase--by just creating extra money! That and the spending bills is what created inflation. The tariffs were just a very small fraction of the total.
Fareed, for the last 2+ years, continues to ignore the continuing "record profits" officially reported over the majority of the last almost 7 quarters in the food and oil sectors. Producer price index peaked in June 2022, yet inflation remains sticky but Fareed never mentions this? It's greedflation officially!
Are you serious? Duh! if there’s more money in circulation, more people shop at companies and CEO’s make more money. This is the government’s doing nut job
The 80-90-2000-2010 had the best year of the costumers. Being dependent in manufacturing for that long, comes back and hits you hard. In the 80-s there were 15-16 big food distributors. Check it out now. And that's just the food industry. Company greed is tearing up the common man. Wall Street, Shareholders, Bitcoin is doing this. Where is Teddy Roosevelt at with his baseball bat.
I'm acanadian, where costs (food in particular) have skyrocketed. I was just in California and was shockex by how expensive food is there. I don't know how Californians are feeding their families. It's BS!
If we rise the tax the consumption we encourage not to spend more. If you low tác the product cost will low you purchase more. If you raise the price of the product and you make less monies you will buy less items if you low the price of products you can buy the product with less monies and you have extra left over from monies you can choose for saving
Sadly the political goals are costing Americans! True, in the last 3 decades it trained the consumers to shop smarter though the retail biz collapsed except the air fares are faking price hikes with pseudo sell outs! Also the good thing was the manufacturing costs are done effectively with less wastes. Sometimes the adversity brings a bright side but now the Leaders should optimize these theories with the help of the smart economists to beat the inflations and working great for the economies! As a biz woman in the garment trade when the retail marks up 3 times just for greed knew it was matter of time and this was 20 years ago and the manufacturers declined to believe then and see how they had to downsize today.
One thing you left out. Capitalism. Consumers that flock to stores selling goods at higher prices instead of finding the same goods at less expensive stores. Buying fresh veggies from farmers markets instead of Costco…. But… playing political blame games in election years is an expected thing to do. Finding the cheapest gas in your area instead of buying from the place you always go. Consumer reluctance to competitively shop… allows greedy corporations to thrive. Prices will come down… if stores lost their customers.
A smaller REAL effort from our govt would be to make the exact same claim to industry that it makes to its citizens. "For all these factors, it is going to cost you more to do business, and while it may move your profit margins down, the American citizens should not bear the brunt of these costs alone. And the America people should abandon any company who maintains their profit margins while we spend more to shore up our positions within the global economy." I am surprised and disappointed at #fareedzakaria for such an inflammatory and overtly divisive report.
Record revenue and profits for corporations - square that with the lie of rising manufacturing & logistic costs. This is Greedflation. Stay in your lane, Fareed.
Yes the tariffs are a tax, and it is bad for inflation, however one of the biggest problems is still the war in Ukraine, and the Republicans not allowing the weapons from the US to be delivered. With the billions of dollars in aid to Ukraine, the economy would be stimulated further, and that has a follow-on to the inflation rate. In the long term tariffs cannot work on the world economy, other markets will take up cheaper exports from China, at a cost to the US.
What do we do about price gouging by corporations and the inflation of corporate profits and CEO pay? Those things are causing out of control inflation
If you think a company is "price gouging," then don't buy their product. Otherwise stop crying, their costs have gone up, so they will pass that cost on to you and maintain their current level of profitability and try to grow it at the same time.
Wages are also outpacing inflation and in a global economy what happens in the world effects US and whole world economy is inflationary: US is doing better economically than ANY other country
@@wifiphone1032truth be told, it is on both, but more on Trump since Biden is still having to deal with an ineffective Congress. I mean it's not like anything really went on 2016 to 2020 other than watching Trump try to sell America and his followers parading like it was golden.
This is a conflation of ideas, though. If costs are higher for Americans due to tariffs, and that lessens Americans’ spending power, then that would be a way to ultimately combat inflation in the same way the feds combat inflation by raising interest rates. Both strategies make it harder for people to spend, i.e it hurts the consumer. Lessening tariffs would do the opposite, it would make consumer goods less expensive and therefore spur on consumer demand to spend and raise inflation. The reason this is important is that the short term promise of cheap goods comes at the long term cost of jobs in America and continued inflation.
Trumps COVID relief was necessary in 2020. The Covid relief in 2021 should not have been done because we had the vaccine and most of the PPP went to rich people. Even Tom Brady got an interest free loan
But he didn’t import 20 million people to compete with us for goods and services plus housing while at the same time increasing gas cost especially with the latest conflicts we inherited from other countries
Oh Fareed, which Administration will you continue to have the freedom to do your show…under a Dem Biden Administration or an authoritarian Trump. Trying to be so fair on air when is a clear choice in 2024.
Farheed has been very critical of trump, and he has called him out, multiple times as a threat, and has offered some insight and possible explanations as to where it came from. He is a friend and ally to liberal democracy. This was about inflation. It's policy. Save your outrage for the truly outrageous. I don't automatically think Biden is great at everything. Both presidents had policy. I do want to spare some time in our discussion for conversation about actual policy and outcomes - and we should do dispassionately and honestly so we develop the correct solution. Save the partisan hat for politics. This isn't politics.
Inflation has stated bad because of the behavior of the Progressives... the constant printing and dissemination of national debt is killing our economy.
I agree that too many were quick to call globalisation dead, and characterise that as a good thing. I don't know any socio-economic change that was received as perfect across society. Similarly, I don't know any change that was an improvement on the status quo that wasn't attacked for being imperfect. We have unrealistic expectations largely born from a laziness that kicks in as soon as we find the explanation that sits easiest in our egos.
This is the reason tariffs impact inflation. Domestic producers will match the price increase of the same foreign produced goods if the resulting price is higher. Take light trucks. Since the 60's, tariffs have been in place on all foreign made light trucks imported into the US. (about 25 percent). The result is the price of all light trucks increased about 25 percent from what they were before the tariffs.
I’ve been pointing to the inevitable inflationary wholesale and retail knock-on effect of those tariffs since they were first imposed by Trump. And here we are. Inflation.
@@anthonywilson4181 - there a delay based on how long it takes for existing inventories to be drawn down. And thanks to the fumbled response managing affairs in 2020, the economy slowed WAY down, thus pushing the inevitable knock-on effects into the next administration as the economy finally rebounded under steady leadership.
@@BooksForever cost-push inflation driven by bad fiscal policy such as energy regulation and labor cost. Also demand-pull inflation driven by consumer borrowing (credit card debt) also unchecked federal spending pumping unearned cash into a fragile economy. The national debt now exceeds $34 trillion.
Fareed got it totally wrong this time. He might be an expert in geopolitics but his lack of economic background shows. No, inflation is NOT APPRECIABLY affected by the tariffs of the Trump and Biden administrations. The main driver is monetary policy, instead.
It costs a hell of a lot more to dig an economy out of a recession that can quickly escalate into a depression than the cost of inflation from an overly aggressive stimulus program. And that's just to end up back in the same place.
There was no deal with OPEC. The Saudis laughed at Trump when Trump wanted them to stop the oil dumping policy that was designed to put frackers out of businesses. When the dumping policy scared away fracking investment, OPEC drove up prices. The Saudis laughed at Biden when he asked them to drop prices.
I understand how interest rates and energy prices can affect all kinds of products and services, from rents to groceries. I can also understand Fareed’s argument about tariffs and inflation with respect to imported products (from China). But why can’t NAFTA countries like Mexico become an alternative to China for some products? Also, why is there so much inflation in services, like healthcare, insurance and education? Is it because personnel costs have gone up to keep with cost of living (housing, cars, groceries etc.?). These industries are not clearly linked to Chinese manufactured goods and account for a good portion of the inflation that Americans are experiencing. I would like to see a more granular breakdown of inflation by sector (which is easy to track; data is available) but then also how each sector is affected by the Trump tariffs or other explanatory factors like personnel cost, corporate profits etc. From a recent analysis I saw, a lot of price increases are simply due to executive decisions to boost corporate profits. This is only possible in a world where there is insufficient competition, since many US industries are now effectively colluding oligopolies.
I see many people blame "corporate greed" for inflation. As if corporations weren't greedy 5 years ago. It's actually backwards. Corporate profit is an effect of inflation, not the cause. Corporations perform better in high inflation environment precisely because they are greedy. They are much more efficient at driving up prices and suppressing their cost than the average person. Deficit spending pump large amount of money into circulation while COVId shut down the global economy. Inflation was inevitable. Now the tariff just makes it so much harder to restart the global economy. These are just some very basic concepts economists have been saying for years. The irony is that poor people tend to turn to nationalism and protectionism when they struggle in life, yet these policies usually hurt poor people the most.
When deaf Americans discuss the 2024 White House candidates, some of them use a sign representing the president's classic aviator sunglasses to refer to Joe Biden, or make a gesture mimicking Donald Trump's signature comb-over hairstyle. Experts say many of the approximately one million deaf and hard-of-hearing American Sign Language (ASL) users in the United States may not be participating in politics at all, due to the inaccessibility of campaigns. In a country where the last two presidential races were decided by only tens of thousands of votes, the group represents a potentially significant but untapped voting bloc. Presidential campaigns that receive federal funding are legally required to caption their ads, but captions can be glitchy or inaccurate, and most candidates don't hire interpreters for live events. And captions do not always provide sufficient access. ASL is its own language separate from English, with its own grammar, word order and idioms. When deciding who to support, deaf voters may be interested in candidates' stances on issues related to their disability, such as funding for specialist schools, but they are focused on the same issues other Americans care about too.
To all my Trump supporters, don't be silenced, don't be shamed, don't be afraid. That's what the masses want - keeping you in the shadows, keeping you quiet without a voice. Speaking up is your God-given right - use it or lose it. Stand strong 💪 stand united 🇺🇸
Yes both old geezers contributed to this mess... But neither one of them is doing anything about it or the price gouging thats going on with the supermarket chains and other products and services that are over-priced... It doesnt matter which one you vote for they both will just allow this to continue!
