Topics discussed include the theory of inflation, dynamic pricing, different schools of economic thought, OPEC's oil price increase, tension between business and economics programs, the origins of the Nobel Prize in economics, transphobic articles by the New York Times, healthcare access story manipulation, consequences of basing bans on lies, increase in gun violence and controversy over firearm regulations, unintended consequences of protecting people from the car serial system, impact of gentrification on Albuquerque's native population, diversity of nationalities at the border, mutual aid at the border crisis, role of religious organizations in providing assistance, extreme conditions faced by asylum seekers, formation of a grocery store union, motivation behind union organizing in progressive workplaces, and the power of labor organizing.
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Quick takeaways
Raising interest rates is not an effective strategy to control inflation, as there is no clear inverse relationship between the two.
Inflation is mainly influenced by exogenous factors like supply chain disruptions and geopolitical events, rather than changes in interest rates.
Misguided monetary policies based on the belief in interest rate hikes' ability to curb inflation can lead to negative consequences like increased unemployment.
The governor of New Mexico has announced a ban on carrying firearms in response to the surge in gun violence in Albuquerque.
The development of the Trans Data Library aims to provide journalistic resources on trans issues for informed decision-making.
Mutual aid efforts and community support are crucial in improving the difficult conditions faced by migrants at the border.
Deep dives
Interest rates have no impact on decreasing inflation
The podcast episode discusses the belief that raising interest rates can control inflation. However, various studies and economists have found no evidence to support this belief. The correlation between interest rates and the general price level is weak at best, and there is no clear inverse relationship between the two. Even when interest rates are raised, prices often continue to rise. Additionally, the notion that raising interest rates will lead to higher unemployment and ultimately lower prices is not supported by empirical evidence. In fact, attempts to raise interest rates to control inflation have often resulted in limited impact on prices and unemployment rates. Overall, the idea that interest rate hikes can effectively decrease inflation does not hold up under scrutiny.
Inflation is driven by supply chain and exogenous factors
The podcast episode highlights that inflation is mainly influenced by exogenous factors such as the chip shortage, labor shortage, and geopolitical events like the war in Ukraine. These factors cause disruptions in supply chains, leading to increased costs and price increases. The theory that raising interest rates can directly control inflation overlooks the complex dynamics of the economy. Supply chain pressures and exogenous shocks have a more significant impact on prices than changes in interest rates. It is crucial to consider these factors when analyzing and responding to inflationary trends.
Raising interest rates can have unintended consequences
The belief that raising interest rates can effectively control inflation has led to misguided monetary policies. While some argue that higher interest rates can induce a partial recession, resulting in lower prices, empirical evidence does not support this claim. In reality, raising interest rates has limited impact on prices and can lead to other negative consequences, such as increased unemployment and economic instability. Additionally, the correlation between interest rates and the general price level is not strong, further challenging the idea that interest rate hikes can effectively curb inflation. It is crucial to reevaluate traditional economic theories and consider alternative approaches to address inflationary pressures in the economy.
Increase in Gun Violence in Albuquerque
There has been a significant increase in gun violence in Albuquerque, with the number of shootings and murders almost doubling in recent years.
Controversial Ban on Carrying Firearms
The governor of New Mexico has announced a ban on citizens carrying openly or concealed firearms within the county that contains Albuquerque, citing the surge in gun violence as the justification for the ban.
New Mexico's Response to the Ban
The ban has sparked mixed reactions, with some supportive, some indifferent, and others angry about the restriction on their right to carry firearms.
Creation of Trans Data Library
There is a new resource called the Trans Data Library being developed to provide information on various groups and activists involved in trans issues. It aims to be a journalistic resource to help journalists and politicians make informed decisions and avoid misinformation.
Lack of services provided by Border Patrol
Border Patrol is not providing any services to the migrants between the fences, claiming they are not detained and can return to Mexico if they want.
Mutual Aid Response
Several organizations are providing mutual aid to the migrants, offering water, food, blankets, and phone charging. Religious groups are also involved in the mutual aid efforts.
Challenges and the need for solidarity
The migrants face difficult conditions, including extreme temperatures and lack of essential services. Mutual aid efforts, community support, and solidarity play a crucial role in helping improve their situation.
Formation and Growth of the New Seasons Union
The New Seasons Union was formed through grassroots efforts at the individual store level, with workers organizing around issues such as the attendance policy, low wages, and healthcare. The initial organizing efforts began at the seven corners store and quickly gained momentum, leading to the formation of the union. The organizing efforts spread to other stores, and within a year, the union now has nearly a thousand members. The progressive reputation of New Seasons attracted workers who were initially hopeful for a better work environment, but were disappointed by management's actions. The union's goal is to improve working conditions for current employees and future workers.
Recent Developments and Strike Readiness
Recent developments in the New Seasons Union include an ongoing battle over the attendance policy, which management has changed for non-union workers in a regressive manner. The union has filed an unfair labor practice charge against the company for bad faith bargaining. In response, the union is preparing for strikes and organizing practice pickets as a show of force and to build a culture of unionism. The union is also seeking support through a GoFundMe campaign to establish a strike fund and receive necessary resources. Despite facing challenges such as turnover and apathy, the union remains determined to fight for the rights of New Seasons workers and build solidarity within the labor movement.
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