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Does this surprise anyone?it’s amazing that companies are permitted to increase prices due to “inflation” but not simultaneously increase wages. But more impor
by olliej 4y ago
Does this surprise anyone?it’s amazing that companies are permitted to increase prices due to “inflation” but not simultaneously increase wages.
But more importantly all these companies blaming inflation for prices increases but then reporting proportionately increased profits should be required to pay a recovery tax to bring their profit back down to pre “inflation” proportion.
And of course this is all moot, because inflation calculation intentionally ignore anything that doesn’t impact corporations (cost of living, credit interest rates for individuals, etc), and does include things like interest rates that corporations receive.
- Natsu 4y agoWhat do you mean by "allowed"? Inflation happens because we print more money than there are goods to buy and all costs begin to rise because there's still only the same amount of stuff to go around, but more demand. You can mandate price fixing, but that just tends to cause death spirals where the cost of producing something rises above what you're allowed to charge, so you either keep producing and can't pay your own workers or you stop producing and there's no further supply at any price. Of course, the fact that this has played out before means that I know that people will just ignore the lessons from Brazil, Zimbabwe, etc. and screw themselves yet again because inflation solves political problems while causing real ones.
- gruez 4y ago> it’s amazing that companies are permitted to increase prices due to “inflation” but not simultaneously increase wages. The implied proposal sounds like a great way to get a wage-price spiral.
- switch007 4y agoI guess we'll just have to shut up and accept a price spiral
- krageon 4y agoEventually when enough people are starving we'll have either a revolt or people collapsing in the streets, much better than having to think very hard about how to make basic needs affordable for everyone.
- gruez 4y agoThe "spiral" in "wage price spiral" implies it's a feedback loop. "shut up and accept[ing]" it would imply accepting rampant inflation like in venezuela or turkey.
- switch007 4y agoWe have some pretty rampant inflation in the UK too, the past couple of years. A lot of it now is just greed As in, greed is "spiralling" out of control