18 ms·
> For those who will say "wages catch up". They don't catch up for people on fixed income (welfare, retirement), In the UK the state pension is pegged to incre
by iso1210 6y ago
> For those who will say "wages catch up". They don't catch up for people on fixed income (welfare, retirement),
In the UK the state pension is pegged to increase by at least CPI or wages, there's no economic reason not to peg welfare or retirement to CPI, just a political one.
- dnautics 6y agohow do you peg retirement to CPI? Where is that money coming from?
- iso1210 6y agoState retirement the government simply increases it (as in the UK) For private retirement you buy an inflation linked annuity
- dnautics 6y ago"government simply increases it" print more money, cause pain for everyone who isn't privileged to work for the government. "inflation linked annuity" socialize the risk for big businesses/municipal debt (inflation linked annuities are often bundles of investments that can produce a yield that matches inflations, you can't magically create these things)
- sitkack 6y agoInflation is a tool to push wages down, you can collectively bargain against labor with inflation. If you are in the owning class, you want wages tied to a currency and not the CPI. And you want a steady form of inflation that you can account for, while labor costs can drop at 2% plus per year.
- iso1210 6y ago> Inflation is a tool to push wages down, you can collectively bargain against labor with inflation. And labour collectively bargains to ensure pay remains on track with inflation, so no problem
- sitkack 6y agoWorking As Intended.
- imtringued 6y agoInflation is a tool to increase future wages at the expense of past wages.