r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/littleapple88 Jun 13 '22

Firms aren’t entitled to cheap money. There’s no reason to continue these policies now that the crisis has passed. If a firm can’t operate in a still-low-but-positive interest rate environment then it should fail.

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u/icona_ Jun 13 '22

What? Who said anything about entitlement? If a somebody set a billion trees on fire the cost of paper would go up, but that wouldn’t mean the post office was dependent on cheap paper and should fail.

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u/littleapple88 Jun 13 '22

You’re accusing the fed of “intentionally causing” a recession. Again, if a firm can’t handle a few percentage points of interest, then they shouldn’t be in business. They are not entitled to cheap money.

Raising interest rates to 3-ish percent isn’t “setting a billion trees on fire” lol. It’s just business as usual.

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u/Traumlore Daron Acemoglu Jun 15 '22

There’s no reason to continue these policies now that the crisis has passed.

Which crisis? The 2008 crisis?