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> The author, in my mind, has tunnel vision for workers’ rights and wages, and won’t see the impacts of 6% inflation on the lives of that same working class. T

by lapcat 4y ago

> The author, in my mind, has tunnel vision for workers’ rights and wages, and won’t see the impacts of 6% inflation on the lives of that same working class. The very next paragraph after the one you quoted: "today’s inflation is caused by commodity market speculation, not wages. And if workers demand higher wages to deal with the inflationary impact of higher energy and other commodity prices - that is a consequence, not a cause of commodity price inflation"

Kalium 4y ago
Something can be both a consequence and a cause. That's how feedback loops work, and inflation is distinctly prone to feedback loops. Insisting that something is a consequence and therefore not a cause smells like politics being placed over rigor.
- lapcat 4y ago
  The author has analyzed this elsewhere, for example: https://annpettifor.substack.com/p/grain-inflation-starve-the-poor-feed https://annpettifor.substack.com/p/grain-inflation-starve-th...
- deleted 4y ago
  [deleted]
mjburgess 4y ago
So, absolutely nothing to do with the money supply? I mean, if it had to do with the money supply, then the fed is acting well to reduce it, right? https://d3fy651gv2fhd3.cloudfront.net/embed/?s=unitedstamonsupm2&v=202303041002V20220312&d1=20130324&h=300&w=600 https://d3fy651gv2fhd3.cloudfront.net/embed/?s=unitedstamons... > has tunnel vision for workers’ rights Seems correct to me
Aunche 4y ago
Commodity market speculation is also caused by too much cheap money sloshing around with nothing productive to do, and the solution is still to increase interest rates. By the time central banks decided to raise interest rates, wage growth had already lagged behind inflation, so workers demanding higher wages is not enough to offset inflation.
- lapcat 4y ago
  > Commodity market speculation is also caused by too much cheap money sloshing around with nothing productive to do, and the solution is still to increase interest rates. By the time central banks decided to raise interest rates That's a fair statement, but the timing is crucial, as you seem to note above, and the timing of the interest rate hikes is what the author is criticizing: "But as importantly, through lack of analysis, regulation, oversight and foresight - central bankers have shown this last week they were prepared to use high rates to risk and even precipitate bank failures and global financial instability. They have done so, and continue to do so by deliberately tightening monetary policy into heavily indebted economies, with falling real incomes. Economies that have still not fully recovered from both the GFC and the pandemic." "In other words, their effective preference is for class war over financial stability." "The big question central bankers must address is this: why did speculators and venture capitalists notice these imbalances while they and financial regulators did not?" > wage growth had already lagged behind inflation Wage growth almost always lags behind inflation, because it's much easier and quicker to raise the price of goods than for workers in general to demand and receive wage increases.
  - fundad 4y ago
    A lot of the money sloshing around started in 2017 with tax cuts and increased spending on DOD

by lapcat 4y ago

Kalium 4y ago

Something can be both a consequence and a cause. That's how feedback loops work, and inflation is distinctly prone to feedback loops. Insisting that something is a consequence and therefore not a cause smells like politics being placed over rigor.

lapcat 4y ago
The author has analyzed this elsewhere, for example: https://annpettifor.substack.com/p/grain-inflation-starve-the-poor-feed https://annpettifor.substack.com/p/grain-inflation-starve-th...
deleted 4y ago
[deleted]

mjburgess 4y ago

So, absolutely nothing to do with the money supply? I mean, if it had to do with the money supply, then the fed is acting well to reduce it, right? https://d3fy651gv2fhd3.cloudfront.net/embed/?s=unitedstamonsupm2&v=202303041002V20220312&d1=20130324&h=300&w=600 https://d3fy651gv2fhd3.cloudfront.net/embed/?s=unitedstamons... > has tunnel vision for workers’ rights Seems correct to me

Aunche 4y ago

Commodity market speculation is also caused by too much cheap money sloshing around with nothing productive to do, and the solution is still to increase interest rates. By the time central banks decided to raise interest rates, wage growth had already lagged behind inflation, so workers demanding higher wages is not enough to offset inflation.

lapcat 4y ago
> Commodity market speculation is also caused by too much cheap money sloshing around with nothing productive to do, and the solution is still to increase interest rates. By the time central banks decided to raise interest rates That's a fair statement, but the timing is crucial, as you seem to note above, and the timing of the interest rate hikes is what the author is criticizing: "But as importantly, through lack of analysis, regulation, oversight and foresight - central bankers have shown this last week they were prepared to use high rates to risk and even precipitate bank failures and global financial instability. They have done so, and continue to do so by deliberately tightening monetary policy into heavily indebted economies, with falling real incomes. Economies that have still not fully recovered from both the GFC and the pandemic." "In other words, their effective preference is for class war over financial stability." "The big question central bankers must address is this: why did speculators and venture capitalists notice these imbalances while they and financial regulators did not?" > wage growth had already lagged behind inflation Wage growth almost always lags behind inflation, because it's much easier and quicker to raise the price of goods than for workers in general to demand and receive wage increases.
- fundad 4y ago
  A lot of the money sloshing around started in 2017 with tax cuts and increased spending on DOD