You can't help soften the blow of inflation by giving people more money! That will just cause more inflation and make everything worse!

We've all heard it a thousand times, giving normal working class people, especially poor people, more money will only make everything worse by causing more inflation. Somehow this will leave the majority worse off than if nothing had been done.

This is considered common sense among liberal-conservatives but as leftists we instinctively know that it is bullshit. Maybe higher wages and benefits would increase inflation but the net total is that the working class would be better off than before.

Instinct is not a very convincing argument though so how do you argue the case against the wage inflation spiral to liberal-conservatives?

  • LeninsRage [he/him]
    ·
    2 年前

    It isn't, it's class war in action

    But right now wage-price spiral is definitely not causing inflation. Nominal wages have gone up, but real wages have continued to fall. What's been happening this year is an energy shock combined with a supply shock for goods in general. Demand has gone crazy since the pandemic, while the pandemic continues to wreak havoc on supply chains.