This morning's Twitter thread:
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Read more about me
If you like what I do please support me on Ko-fi using credit or debit card or PayPal
Tax Research UK Blog is written by Richard Murphy unless otherwise stated and published by Tax Research LLP under a Creative Commons Attribution-NonCommercial 3.0 Unported License.
Design by Andy Moyle
Buy me a coffee!
Even if increased pay feeds back into increased inflation – see the recent IMF work which indicates the feared “wage-price spiral” is a fiction – can anyone explain how that works for the pay of public sector workers, such as those working in the NHS, or the Border Force? What prices are driven up by paying them more? More to the point, how can 10% inflation be driven by 2% public sector pay increases, when many private sector workers are receiving increases of 6% or more.
The differentials in pay and conditions already make public sector work unattractive – the market has spoken: witness the large number of unfilled vacancies. Anyone who is determined to make public sector work even less attractive must recognise the effect will be to further harm public services.
Ministers are always keen to talk about inputs – amounts spent, new training places, new hospitals – but not about outcomes. However much they are doing, it is not enough.
It is a point rarely heard – that the NHS, for example, has bo price and so inflation cannot be fuelled by it
But the attack on wages is ideological anyway
I fear that the government will take credit for the fact that “maths works” – of course inflation (the rate of change of prices) will fall…. and you are correct to point out that this has virtually nothing to do with government policy.
However, just because prices stop rising does not mean all is well. If you can’t eat/heat this year then, even at zero inflation, you won’t be able to next year either (unless you get a pay rise)….. it is simple maths….. but we have a political class that fails to see this.
But, at its heart this is not about macro economics, maths or political theory… it’s about empathy and support for ordinary folk trying to lead ordinary lives without being in fear of where their next meal comes from or whether they will stay warm tomorrow.
I agree entirely Clive
Do they not understand, or is this deliberate?
It appears to be quite deliberate, and I am with PSR (below) on this one.
Whether liars or fools they are not fit to govern.
Short, simple and absolutely hitting the mark, Clive.
I totally agree.
Craig
“….. this is not about macro economics, maths or political theory… it’s about empathy and support for ordinary folk trying to lead ordinary lives without being in fear of where their next meal comes from or whether they will stay warm tomorrow”
The Guardian has a section of the site covering those suffering… “The Heat or Eat Diaries” – some of the stories are almost Dickensian. The Independent has a long read today covering Oldham:
https://www.independent.co.uk/news/uk/home-news/oldham-bills-unemployment-poverty-hunger-b2244333.html
Same sort of stories as in The G’.
The problem is that the tories have no empathy. They never have and they never will. This is a point that needs to be made, repeatedly, tories all of the time are the no-care party. The poor people profiled in the Indy & G will never see any alleviation as long as there is a Tory gov.
In the post “What Labour has to do to get its act together” PSR made a fine attack (in my view) on centerism. Expressed another way: the gravitational pull of no-empathy-tories both drags and infects Liebore into a “centerist position” – “the poor are always with us – we can’t do much” style of. Good grief what a situation.
Thanks
Agreed
Pig shit rules in Neo-liberal land I’m afraid.
Given that petrol prices have dropped by about 30p/litre over the last month or so and Diesel isnt far behind perhaps we are seeing the beginning of the end of inflation
Although Jonathan Pie does not talk about inflation – he does talk about striking workers. The anger is palpable.
If I was a tory I’d be worried since I think he reflects the deep anger felt by many. Most of the people I talk to – in the past they would have been either one-nation tories or labour people that recognised that a mixed economy is needed – are incandescent with rage at the current situation.
https://www.youtube.com/watch?v=Gljtvwhcdhc
Rightly so