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Dwindling exports, government spending, and shrinking markets in the U.S. conspired to produce a withering Gross Domestic Product. Pointing toward another potential recession, the GDP fell by an annualized rate of 1.4% in the first quarter of 2022. Still, U.S. federal authorities want to tighten the economy even more to force down wages for the working class and weaken the effectiveness of what some call the “Great Resignation.”

Inflation and a tight monetary policy are the latest tools in a systemic class war targeting U.S. workers. Since the pandemic produced a massive shift in the economic organization in 2020 and 2021, many workers refused to work except in jobs and professions that provided the best incomes.

As labor activists Sarita Gupta and Erica Smiley write in their recent book, The Future We Need, millions of workers “were able to leverage a tight labor market to simply leave their jobs and not work for anything less than what they deemed fair.”

In addition, more workers found joining or organizing labor unions an excellent choice to strengthen their bargaining position with employers.

Employers and their political allies reacted swiftly. Many corporations drove up prices, and corporate-owned media began to talk about the problem of inflation and budget deficits. They demanded and got a federal monetary policy that would protect their profit margins.

Even before employment rates had reached pre-pandemic levels—which were already showing signs of weakness—U.S. politicians and the Federal Reserve authorities pushed to tighten the money supply with higher interest rates. President Joe Biden backed off promises for new rounds of economic investments—even as the U.S. political system ground to a halt unable to pass new laws to stimulate long-term economic stability.

Promises to forgive hundreds of billions in student loan debt have been kicked down the road. Little action has been taken to push for a higher minimum wage, and new investments in education, infrastructure, and technological research are lacking.

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