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Tory Inflation Lies: 'Wage Price Spiral' ...

Tory Inflation Lies: 'Wage Price Spiral' is the new 'Trickle-Down Economics'.

Jun 23, 2022

The Tories love a misleading phrase, they hide the lies better than straight talking. but what is a wage price spiral? One of the ways the Tories are attacking the striking rail workers right now is by saying if they were to give into their demands, it would cause a wage price spiral, basically calling for wage restraint for fear it will trigger a rise in inflation. The concept arises around a theory that when inflation is high and is expected to remain so, people will want pay rises to match inflation so they don’t become poorer and those extra costs will prove so crippling to employers, they’ll have to pass those costs on in the form of price increases, driving inflation up again, hence the spiral. The failure of this concept is that it makes out that asking for enough money to live on is the only factor influencing inflation and there’s nothing else the government could do. Of course they could offset much of these price rises by obtaining money from elsewhere, let’s say, a wealth tax for example, but God forbid they do that, some of those rich types might stop donating to the Tory Party after all and that matters more to them than whether you can pay your bills or feed your kids. Mick Lynch got it right, what we have is a price wage spiral, switch those words around and you get a wholly different, but far more accurate term. Prices have gone up, are still going up anyway, due to high inflation, but wages have fallen so far behind now it’s absolute madness to say wage increases would drive or are driving this rising inflation. When inflation is now 9.1%, up from 5.4% at the end of last year, your wages - already not sufficient to get by, wages factually haven’t really kept up since the 90’s - that means for every £100 you earn, you have roughly £4 less spending power than you did 6 months ago. Inflation is being ramped up right now by companies refusing to cut their prices, despite their costs having not risen. Instead of demanding the likes of BP or Shell cut their prices, the Tories are bending over backwards to avoid doing so and telling you, that you asking for a pay rise is to blame instead. Price gouging is to blame, Energy Bills are set to rise 50% now in October, it’s greed on an astonishing level. We’ve a government more interested in attacking us and not setting things right is and sitting on our hands doing nothing about it is also to blame, it’s no longer an option. The rail workers have said enough, bus drivers, bin men, nurses, teachers and more are either saying the same thing or seriously thinking about it right now and with good reason. We’ve a Tory government that are pointing the finger of blame at those suffering most from rising inflation and saying it’s your fault. It’s a lie. Everything happening right now is very much theirs.

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