Stop Talking About Pain

I know if I turn up the volume on CNBC today, everyone will be talking about pain. Last week, the Chairman of the Federal Reserve Jerome Powell said the following:

“While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

Did anyone happen to notice where Powell made this comment? He made it at an annual retreat in Jackson Hole Wyoming. I can guess what the accommodations were like at this thing.

Anyway, even though the markets tumbled, most of the talking heads were glad that Powell said what he said. Pain was needed they said.

The pain everyone is referring to is higher unemployment (“softer labor market.”) Unfortunately, as interest rates rise, so does unemployment.

Yes, there is pain from declining stock markets and lower profits, but that’s only pain on paper.

Unemployment hurts. That is real pain. Not being able to pay your bills, having to sell your house, move your kids, get a divorce, go into serious debt – all of that is tangible pain.

Maybe I’m too sensitive, but Jerome Powell talking about pain while in Jackson Hole with a dozen multimillionaire buddies bothers me. It also bothers me when the host on CNBC says something like “look I think maybe there needs to be even more pain” even though she personally makes a few million a year and is in no danger of losing her job.

I’m no fan of Bernie Sanders, but it seems like there’s a lot of money sitting in people’s bank accounts making more money instead of helping people.

What if we took one billion dollars from every multibillionaire, a hundred million dollars from everyone worth close to a billion, and one-half of one percent of the profits of all major corporations?

What if all that money -- trillions -- were managed by a private company charged with keeping unemployment low and easing financial hardship?

Does this idea make me a socialist? A communist?

No. First, I would never give this money to the federal, state, or local governments because they’d mismanage it. Second, I wouldn’t make it a tax or a law. It should be by personal choice. That is, the billionaires and gigantic corporations in this country should want to do it. And if they don’t, they don’t have to.

I find it surprising that it doesn’t already happen.

Picture yourself in the lap of Jackson Hole luxury, with deep blue skies as far as the eye can see. Big, beautiful hotel suites where everything is taken care of. The retreat is on the arm because it’s for work, so you don’t have to spend any of your billions. When your head hits the perfectly luxurious pillow at night, you’re not worried about a single bill you’re going to need to pay soon. You and your entire family will have enough money to live comfortably the rest of your lives – even if you never work again.

OK, now, in that setting could you, in good conscience, tell the world that pain is good?