The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
To spell it out - the major cause of spending power erosion for working people is corporate and financial action.
In reality, there is no other cause. Between increased costs due to speculation, oligopolistic profiteering, and overbilling for government services, with a bit of corruption to grease the wheels, wage demands and government welfare spending are pretty much irrelevant. (And when was the last time you heard of someone making a wage demand?)
The 'by definition' part is the fact that even on those rare occasions when corporate and financial action is quietly - very quietly - allowed to have created inflation, the only acceptable remedies are further downward pressure on wages, and cuts to government spending.
Price - i.e. profit - controls are utterly unacceptable.
In economic propaganda-land, there is no causal link whatsoever between increased prices created by asset/commodity profiteering+speculation, and official unicorn fart inflation, which is the number that gets bandied around on the news as a target.
Only worker demands and public spending can create inflation. No other economic agent is ever responsible.
If it starts to look like some other agent might be responsible, you can - and should - change the technical calculation used to define the inflation figures, and all is right with the world again. (E.g. I understand that by using vintage definitions of inflation, the real rate in most Western countries is very much higher than the 2% or so we're told it is.)
Of course all of this is insane double-think, and a naked lie. Even so - it's a very popular and persistent lie.
I don't doubt some economists have a more sophisticated understanding. But if they do they won't get a lot of air time, and they'll have even less opportunity to set policy.
by gmoke - Jun 10
by Frank Schnittger - May 31
by Oui - May 30 50 comments
by Frank Schnittger - May 23 3 comments
by Frank Schnittger - May 27 3 comments
by Oui - May 13 66 comments
by Frank Schnittger - Jun 10
by Oui - Jun 91 comment
by Oui - Jun 58 comments
by Oui - Jun 257 comments
by Oui - Jun 112 comments
by Oui - May 31122 comments
by Oui - May 3050 comments
by Frank Schnittger - May 273 comments
by Oui - May 2742 comments
by Oui - May 24
by Frank Schnittger - May 233 comments
by Oui - May 1366 comments
by Oui - May 928 comments
by Oui - May 450 comments
by Oui - Apr 30273 comments
by Oui - Apr 2666 comments
by Oui - Apr 8108 comments
by Oui - Mar 19145 comments