Viewers get a throw-away line about Big Three’s “record profits” but no sense of what those profits have been: Ford, General Motors and Stellantis made a combined $21 billion in profits in just the first six months of this year. According to the UAW, they’ve earned a quarter trillion dollars in profit since 2013.
This right here. There is a staggering lack of understanding about just how money is circulated in the economy. The assumption is that if you let billionaires and corporations concentrate capital it will be good for the rest of us because they will create jobs. That is true at the margin when capital is at a premium, but in an era easy money, investment isn’t the problem. You can also rest assured that without unions corporations will cut every job they can to boost the bottom line.
Conversely, there is this puritanical sense among some that if you pay workers more, then they will get lazy … or something … and that is bad for the economy. This is bullshit. Billionaires hoard capital. Workers, because they have to, spend their paychecks (lower marginal propensity to save) and keep money circulating. Paying people decently is good for the economy.