‘Economic Policy’ Is a Propaganda Facade to Extract Wealth From the People
Leaked documents from Bank of America revealed a stark truth about economic policies. While politicians and the media discuss solutions to economic problems as if “we are all in this together,” behind closed doors, insiders prioritize policies that benefit employers at the expense of employees and the public.
Inflation (i.e., the general increase in prices) directly affects the living standards of the majority (99 percent) while employers (one percent) decide on pricing. If inflation outpaces wage increases, it redistributes wealth from employees to employers, highlighting the class struggle inherent in capitalist economies. Unfortunately, there is no democratic process that holds employers accountable for their pricing decisions, so that society bears the brunt of selfish decisions.
The government’s response to economic downturns, as with the COVID-19 pandemic, includes policies such as quantitative easing (QE). QE provides money to large financial employers, hoping they will lend to non-financial employers and stimulate the economy. This policy primarily favors the employer class, with the hope that benefits will “trickle down” to the majority. Quantitative tightening (QT), meanwhile, reduces money circulation and raises interest rates, disproportionately burdening smaller businesses and individuals.
Fiscal policies, like monetary policies, tend to favor larger employers. During recessions, government spending on infrastructure and defense mainly benefits well-established capitalist enterprises. Direct support for employees is often delayed or reduced due to employer-class pressure. Similarly, tax cuts disproportionately favor corporations and the wealthy, while less stimulative taxes on the middle and lower-income groups are overlooked.
Inflation discussions often overlook employer decisions. When demand rises, employers can choose to produce more goods or increase prices. Their profit-driven choices influence inflation rates, yet these decisions are frequently excluded from policy debates to evade responsibility for inflation. Policy discussions typically focus on aggregate tax and spending figures, obscuring the class dimensions involved. Raising or lowering taxes and spending without considering their impact on different income groups favors the employer class and perpetuates inequality.
Economic policies, carefully tailored to maintain the employer-employee structure of enterprises, serve to preserve the capitalist system. By exposing this bias, policy discussions can explore alternative options, including systemic change, to address the pressing issues facing global capitalism. Economic policies, often presented as solutions to societal problems, frequently serve as a façade for the interests of the employer class. A deeper analysis of class struggles in capitalism is crucial for crafting policies that promote economic equity and systemic change.
🔭 This summary was human-edited with AI-assist.
