The Tories and the bankers are lying to you about inflation. Is this the reason?

It seems the Tories and the Bank of England are starving you of money with a lie – to cause problems for a possible future Labour government.

Take a look at this – and listen to the clip:

It’s true: driving down wages will do nothing to halt inflation because the only reason people want wage increases is so they can afford to pay prices that have already risen.

Wage rises don’t cause inflation – they are demanded because of inflation.

So what’s the real answer to the crisis – the one these rich Tories and super-rich bankers don’t want you to know?

Here’s Richard Murphy:

There’s your argument to put against twits like Victoria Atkins (above): for wages to be fuelling inflation, wage rises would have to have been above the rate of inflation – and they haven’t been.

In fact, wages have fallen so badly in real terms that teachers are said to have lost more than £65,000 in total since the Tories started cutting their pay.

That’s your answer in a nutshell.

But why aren’t the Tories and the bankers saying – and doing – this? Easy: they hate you.

So it’s perfectly fine for working people to have the pay rises they need, in order to make ends meet. Inflation will return to the normal level without any downward pressure on your pay.

So: greedy corporate bosses who are taking advantage of current circumstances to increase their prices beyond what is necessary are responsible for inflation.

They probably do; an election is approaching that the Tories do not expect to win. If they crash they economy and a Labour government has to deal with it, they’ll be able to criticise from the sidelines (especially if Labour honours its pledge to continue Tory economic policies until such time as the economy improves) and use Labour’s subsequent failure to sort out the mess to persuade voters to bring in another Tory government at the following general election.

So corporations are pushing up inflation so they can make a fat profit; they’ll still have that fat profit in the future when they use continuing higher revenues to pay higher wages, so their employees can still afford to buy the goods and services they need. The current inflationary cycle is a means for the already-rich to become even richer.

The claim that much of the pressure for wage rises is created by the Bank of England is supported by the fact that businesses will incorporate interest rate rises into their prices. Most, if not all of them, will have debts. Look at the privatised water firms: they have debts because they borrow to cover the costs of equipment and so on. This allows them to pay around 35 per cent of their turnover to shareholders – an enormous amount of profit.

But they must pay interest on the money they borrow and they add that amount into their prices so the customer pays more, not the shareholders.

The knock-on effect is to give us all another reason to demand pay rises.

So the Tory government and the Bank of England are deliberately engineering a recession that will probably harm the credibility of Labour, if Labour wins the next election.

To me, that seems a forlorn hope.

Mr Murphy has described a political struggle in which the Tories are using inflation now to attack a possible Labour government in the future.

The livelihoods of working people are merely collateral damage in that war. Nobody who can make a difference thinks you matter at all.

2 thoughts on “The Tories and the bankers are lying to you about inflation. Is this the reason?

  1. flttymartyn

    The wealthy, the corrupt, the liars and thieves in Parliament and their tax evading cronies will always sh*t on us it is as simple as that. They will rob us of our last penny, and see us dying on the street…They won’t care until we can no longer pay, or afford to keep them, then they will make us suffer more, see us die through lack of food, homelessness, and lack of medical care….We are almost at that point now. We can no longer afford these parasites!

  2. wildthing666

    I’ve always said inflation percentages they give out are false as prices go up more than the rate of inflation and the government always edits the shopping basket to make the inflation rate lower. It’s like swapping a tin of Heinz for the savers range just so they can lower the rate of inflation. People will always buy what they prefer rather than the budget brands in many cases just as they will replace their white goods with the more expensive model similar too the previous product and even pay in instalments for items knowing that they’re charges 20% plus in interest on the items they buy.

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