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Other People’s Blood | Online Only | n+1
Those who praise Volcker like to say he “broke the back” of inflation. Nancy Teeters, the lone dissenter on the Fed Board of Governors, had a different metaphor: “I told them, ‘You are pulling the financial fabric of this country so tight that it’s going to rip. You should understand that once you tear a piece of fabric, it's very difficult, almost impossible, to put it back together again.” (Teeters, also the first woman on the Fed board, told journalist William Greider that “None of these guys has ever sewn anything in his life.”) Fabric or backbone: both images convey violence. In any case, a price index doesn’t have a spine or a seam; the broken bodies and rent garments of the early 1980s belonged to people. Reagan economic adviser Michael Mussa was nearer the truth when he said that “to establish its credibility, the Federal Reserve had to demonstrate its willingness to spill blood, lots of blood, other people’s blood.”
us  history  central.banks  interest.rates  neoliberalism  monetarypolicy  factor.shares 
april 2019 by zesteur
A new theory for why Americans can’t get a raise.
The answer could change how we think about unions, monopolies, and the minimum wage.
factor.shares  US  labourmarket  competition  monopsony  minimum.wage  trade.unions 
january 2018 by zesteur

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