Alternative Visions- Has Union Concession Bargaining Ended in 2023? + Why the CPI Underestimates Inflation

Today’s show addresses two important developments of the past year. Dr. Rasmus reviews the major union contract settlements of the past year (Railroad, Teamsters, Longshore, Auto) to determine if the past 44 yrs of union concession bargaining has finally ended in major contract negotiations in the USA. Concession bargaining ‘markers’ like 2-tier wages, in benefits, hiring of temps, ending of COLAs, and other contract provisions are reviewed. Result: Latest Teamsters (UPS) and Auto Workers contracts mark the end of concession bargaining. Not so clear re. railroad workers and writers and actors, however. So mixed picture. But positive trend. The show also dissects the latest CPI inflation report showing continuation of the trend of goods prices decline but services prices stuck at 5-6% for months. Rasmus concludes Fed has decided to ‘live with’ 5%+ services inflation and not raise rates further (which have limited effect on prices in 21st century in any event). Fed’s decision now resulting in big surge in stock and bond prices and wealth of investors.