. ppened a and we ve got to go back to how this happened, why it happened in s too too much mn too much money was poured into this economy. we had seven pointtrillion three trillion dollars from both administrates the dow. yone listen.es t whyone who tries to conflateo co what happened until twenty ,at t twenty when we stopped the entire economy told people they couldn t go to work. businesses they could not open. and by the way, the entire world did that. t whathat th would happen in twen1 twenty one is just being disingenuous. .the point, though, is that last months those that all that money that camt all e in 2020 os it created. it s the spark. it sparked two things. one , runaway inflation, which we cannot get under control and a wage spiral when you pay o people not to work, when they make double the amount of at hy, staying at home, eating a bowl of fruit loops than they do for going to work, businesses get desperate. when they get desperate, they have to raise wages in this wa
groceries are up 1%. know surprise car dealerships are at the top of the list. this is devastating. this is absolutely devastating. and on top of that, you know, i talked about being paid not to go to work that triggered what they called a wage spiral. wages are going through the roof. they can t afford to even hire people not the folks they want to hire. it s unmitigated disaster. and, you know, we will find out tomorrow just how much the fed is paying attention to main street and not just sitting in some room in washington, d.c., you know, looking at spreadsheets. steve: you know, and yesterday, the president of the united states called for a windfall profits tax on big oil. because he says they are making too much money. listen, the 39 himself with his policies have limited the amount of oil. it s a supply and demand thing. but a week before the election, they want you to forget who exactly is putting the screws to the american consumer. i don t think the american public will fo
it s very difficult and i want to say this, sandra, when joe biden said the other day in that white house thing that he inherited a crisis and developed a resurgence, i beg to differ. with all respect to the president, you know, it s not personal with me, but the reality is, he inherited a boom and turned it into a bust. he inherited near 0 inflation, and turned it into a deeply embedded price and wage spiral. and for example, the railroad union workers got a raise, the wage hike, i don t blame them. they are responding to high prices. real wages for typical families have fallen 3.5%. 3.5% pay cut adjusted for inflation. sandra: it s brutal. larry: for ordinary typical working folks. this is an inflation recession and a recession inflation election and recession election.
not sustainable, and i want to point out this wage spiral is a fallacy. it is common sense. we just cannot be driving it is common sense. we just cannot be driving inflation if wages are falling be driving inflation if wages are falling. the thing that is driving inflation falling. the thing that is driving inflation is price gouging, record profiteering at the hands of big corporations, including the energy companies, who are using the crisis to price companies, who are using the crisis to price gouge, exploit and feed their to price gouge, exploit and feed their own to price gouge, exploit and feed their own coffers at the expense of their own coffers at the expense of the rest their own coffers at the expense of the rest of their own coffers at the expense of the rest of us. the their own coffers at the expense of the rest of us the rest of us. the guardian, rachel, truss the rest of us. the guardian, rachel, truss condemned . the rest of us. the guardian, - rachel
they ve got 7.1% pay rise, and at the times is saying that the unions are eating that as a new benchmark which would probably worry the government are hailing that. absolutely, and i think if that was replicated absolutely, and i think if that was replicated across other sectors, we would replicated across other sectors, we would definitely get that wage spirah would definitely get that wage spiral. that s much higher than the average spiral. that s much higher than the average pay increases, and well off from where average pay increases, and well off from where the government is thinking from where the government is thinking at the moment. the starting base for thinking at the moment. the starting base for this is 2%, which was agreed base for this is 2%, which was agreed at base for this is 2%, which was agreed at the beginning of this year agreed at the beginning of this year. inflation has taken a somewhat different year. inflation has taken a somewhat diffe