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I mean, that's a bit of a simplistic take. I'm all for accountability for politicians, but a lot of inflation does kind of happen on it's own. The biggest infl
by rich_sasha 1y ago
I mean, that's a bit of a simplistic take. I'm all for accountability for politicians, but a lot of inflation does kind of happen on it's own.
The biggest inflation shock of recent era was Russian invasion of Ukraine. And, fine, that didn't "just" happen, but hard to blame Western politicians for it. Western governments had to make a choice between inflation and security. You might disagree with the choice, but it's a balance.
Further, inflation and growth are largely affected by a single lever, central bank rates, and making growth better makes inflation worse, in general. Central banks (mostly) diligently try to walk the right path. Of course I'm not referring to cases where politicians just say, hey you there Independent Central Bank Head, lower rates or else. But that case is an exception.
Then, salaries may or may not keep up with inflation. Inflation is generally bad, as businesses have a hard time lowering notional salaries - but they can more easily not increase them with inflation. But as a strict matter they can do it anyway and labour force can get screwed if they don't hold enough bargaining power.
So I would say that largely, yes, inflation does just happen, and it can be exacerbated by some degree (none to massively) by bad politics. But I think to say it's always just bad government is not right.