this post was submitted on 21 Apr 2024
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When you have cheap money (low interest rates), fractional reserve banking, and a government borrowing trillions of dollars, you inflate the amount of currency units being injected into the system. The more currency you have chasing the same amount of goods, the higher prices go.
There's definitely an element of greed as they will take advantage in certain areas but the underlying issue of inflation is those that I mentioned above.
Demand for the US dollar hasn't gone anywhere. Wages aren't going up in any meaningful way. The money keeps collecting at the top and not going to anyone. The economy has been an absolute farce since the 2008 crash, we've just collectively decided that was fine despite not fixing any of the underlying issues, and in many ways doubled down on them.
It's been a farse well before 2008. That's why it crashed. The fact that they decided to do QE was what made it worse. You had multiple QE programs after that, then you had lockdowns which not only injected more but stopped production. So now you have less goods and more money supply.
You have a debt crisis. Most businesses and corporations are swimming in debt. That money is paid to someone, investments, projects, jobs... Which eventually finds its way into the economy.
You have a housing problem. Your house prices have ballooned higher than 2008. You can't say that's corporation greed. That's simply the debt fuelled economy which leads to a devalued dollar.
And to your point, America didn't collectively agree, the government fucked it's people and will fuck them again purely because people just didn't know. That's why it's so important to know where to direct your anger. Corporations? Yeah fuck them but there's a root to all the problems. And that's monetary policy.
I have to agree, monetary policy is the root of the evil that besets us.
On the housing crisis? Two words. Private Equity.
Corporate greed incarnate has been buying up wide swaths of housing to either demolish single family units in favor of apartments, or simply jack up rents to astronomical levels.
So yeah, I can say corporate greed plays a part in the housing crisis, at least as much as CDOs figured into the 2008 debacle.