Religion and Ethics Forum

General Category => Politics & Current Affairs => Topic started by: Nearly Sane on July 11, 2023, 07:36:38 AM

Title: Record wage growth fuels fresh inflation fears
Post by: Nearly Sane on July 11, 2023, 07:36:38 AM
It's like no one has even considered that in in non demand led inflation that wages would be driven by prices. The govt is clueless.

https://www.bbc.co.uk/news/business-66156713
Title: Re: Record wage growth fuels fresh inflation fears
Post by: jeremyp on July 11, 2023, 01:14:06 PM
Do you not understand that a restriction in supply is effectively the same as too much demand? Either can cause inflation and there's no magic that says an increase in demand won't cause more inflation if the existing inflation is mostly supply side.

Title: Re: Record wage growth fuels fresh inflation fears
Post by: Nearly Sane on July 11, 2023, 01:17:43 PM
Do you not understand that a restriction in supply is effectively the same as too much demand? Either can cause inflation and there's no magic that says an increase in demand won't cause more inflation if the existing inflation is mostly supply side.
What supply do you think is being restricted? Also using interest rate rises in this circumstance fuels inflation
 
Title: Re: Record wage growth fuels fresh inflation fears
Post by: jeremyp on July 11, 2023, 01:31:24 PM
What supply do you think is being restricted? Also using interest rate rises in this circumstance fuels inflation

You're the one claiming the inflation is supply side. You tell me what is being restricted.
Title: Re: Record wage growth fuels fresh inflation fears
Post by: Nearly Sane on July 11, 2023, 01:59:00 PM
You're the one claiming the inflation is supply side. You tell me what is being restricted.
Nope, I'm saying it's not demand led, and that in that circumstance interest rate rises are useless, and indeed are counterproductive.