White House press secretary Jen Psaki last week made a statement that shows Democrats either have no understanding of how the economy works, or they do, and they favor socialism.
More likely both, with an emphasis on the latter.
Psaki was commenting on the notion that companies have reacted to increased taxes by passing costs onto consumers.
“There are some — and I’m not sure if this is the case in this report — who argue that, in the past, companies have passed on these costs to consumers,” she said. “We feel that that’s unfair and absurd, and the American people would not stand for that.”
Note the psychology here. Businesses are supposed to behave as the government wants them to — absorb tax increases — not as economic need demands. Of course they’re going to raise prices in response to higher costs in the form of taxes.
Is her thinking that they also should not raise prices if another cost — say, that of raw materials — rises? Or just when the government makes them pay more?
The next step, of course, is for the government to start telling businesses what to charge for goods and services. Then, are deeply into socialism.