Susan Rice knows very little about domestic policy and was put at the head of the White House Domestic Policy Council as a favor to Obama. It's classic incompetence.
While personally I think student debt cancellation is a good idea, it's ok if the Biden White House goes in a different direction. But they have to do something somewhere about some problem. There's no one doing anything about anything.
An irony here is that Susan Rice's mother was key to creating the Pell Grant program.
I'm sympathetic to the argument that forgiving student debt is bad politics because it mostly helps people that go to college and will breed resentment. But the way out of that is to find ways to help other large groups, not to sit on your hands and say fuck everybody.

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More from @matthewstoller

3 Jan
This is good. It shows the Biden administration has recognized that the forty year experiment of consolidation in every industry is a failure.
If concentration is systemic, then taking on monopolists is an inflation-fighting strategy. 60% of inflation increases are going to corporate profits. mattstoller.substack.com/p/corporate-pr…
Meat is an obvious case. Back in October I pointed out that the economists blocking action on meatpacking consolidation had manipulated data to protect monopolists. Higher beef prices are one result. mattstoller.substack.com/p/economists-t…
Read 24 tweets
2 Jan
Here’s a useful @JosephPolitano piece attacking my argument on inflation and concentration. (Ht @GeorgeSelgin) apricitas.substack.com/p/are-rising-c…
I think my response to @JosephPolitano is that his analysis is divorced from the underlying reality of commerce. Like most macro-economists, he assumes that individual markets are generally competitive, and that concentration is not the norm.
Take this argument on how meatpacking monopolists don't really matter because meat is a small portion of the CPI. This only makes sense if you assume that meatpacking is an outlier. But is it? No.
Read 12 tweets
2 Jan
Rather amusing to see a debate over price controls as if we have a functional government who could implement them in time to do anything about inflation. Adorable!
People who cite John Kenneth Galbraith as controlling inflation often neglect to point out that there was a large competent bureaucracy and public support to implement them. What are we gonna do today? Hire McKinsey?
The anti-monopoly movement spent years studying how to organize the bureaucracies and it’s still really hard to turn the ship around. The idea you can snap your fingers and return to a WWII model of economic organization should be embarrassing to its proponents.
Read 4 tweets
1 Jan
I’ve lost huge amounts of respect for academic historians over the last fifteen years, with superficial and cringe essays like this. Elite historians are increasingly just MSNBC pundits with phd’s. politico.com/news/magazine/…
I remember under Obama how ‘top’ historians just loved him, and ignored his policy choices. Under Trump they mostly followed the same obnoxious groupthink.
Like all progressive institutions, the university system is in crisis. And academics should expect political attacks because they are upholding an increasingly illegitimate order.
Read 5 tweets
31 Dec 21
I love writing my newsletter, but I always get nervous before hitting send. This year BIG hit 50,000 subscribers, and that's a lot of people if I get something wrong.

The top five pieces for BIG this year were...
(1) Amazon Prime Is an Economy-Distorting Lie mattstoller.substack.com/p/amazon-prime…
(2) The War in Afghanistan Is What Happens When McKinsey Types Run Everything mattstoller.substack.com/p/the-war-in-a…
Read 8 tweets
29 Dec 21
Inspired by Larry Summers and his tirade against antitrust, I looked into inflation and market power. It turns out 60% of the rise in inflation is going to corporate profits. mattstoller.substack.com/p/corporate-pr…
This is the corporate profit increase from 2019 to 2021, from $1T to $1.7T, or $2,126 per American. Yes, you pay more than two thousand dollars a year more for everything than you did before the pandemic, purely because corporate profits have gone up that much.
"For every American man, woman and child in the U.S., corporate America used to make about $3,081 in 2019, and today corporate America makes about $5,207 in 2021. That’s an increase of $2,126 per person." mattstoller.substack.com/p/corporate-pr…
Read 6 tweets

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