Potemkin wrote:This does not logically follow.
What are you on about? Of course it does. Can you say something of substance please? Anything?
The increase in the overall total of wages is only one component of the rate of inflation;
it could indeed beat the rate of inflation without necessarily triggering an inflationary spiral.
No, it cannot. And besides which rate would that be, CPI at 11.1% today in the UK or RPI at 14.2%.
Or actual never-measured inflation 2,3 or more times that?
The government increases money they owe you(back taxes, pensions) by the CPI and money you owe them by the RPI.
The CPI is a benchmark that the government is happy with, a benchmark "they or we can beat". Itself a subset of inflation.
Because unless you beat this third unnamed and unmeasured last one, you have not beaten anything, all you have done is thrown fuel into the inflationary spiral
leading to stagflation.
Btw, it is possible for total overall wages to beat the smallest inflation index but only because the CPI index is less than half of actual inflation and even this can only happen when lots of stars align, .ie when inflation is tame below 4%, not today and not during a high inflation crisis, only temporarily and only after a serious golden age style economic revival. And that only because the CPI is not even half of actual inflation.
Marx based most of his economic theory on classical economics, most notably Adam Smith's work. The similarities are therefore not surprising. You clearly haven't read any Marx. Or any Adam Smith either, I'm guessing.
The point is simple, redistribution will not cut it, only growth will.
SueDeNîmes wrote:To you, perhaps.
You are talking to me, your entire paragraph is nonsensical from which no meaning can be discerned. If you have a point to make, please do so.
SueDeNîmes wrote:That'd come as news to BP, ExxonMobil etc just now. Or to OPEC during the 1970s. If someone pays more, someone gets more, but the population in aggregate doesn't gain unless more stuff is produced.
Oh dear, they are not profiting because of inflation, they are causing
inflation to profit and we respond with windfall taxes.
Their assets also get fucked from inflation just like everybody else's.
Nah, it just obviously ain't so (plenty examples of workers securing above-infaltion pay rises)
As I said several times, some sectors will beat inflation, others will not, overall total wages will never
and isn't even addressing the example I was addressing,i.e. wage-led inflation where pay rise = price rise. It was claimed that workers in that case gain nothing. Yeah they do as a matter of arithmetic, albeit at the expense of other consumers.
Perhaps you are imagining strawmen to justify yourself. No, such was not claimed.
Most rich countries deliberately maintain a positive rate of inflation. I'm happy to leave any assertion to the contrary standing on its merits.Rich countries deliberately
No, once again you have got the whole thing wrong. All
economies reject deflation, in all the world in all of history.
If you think you can make a point, please do so. But simply throwing word-salads in the air in the hope some keywords will stick is just ridiculous, please.
And before you mix this one as well. Deflating inflation is not a bad thing at all but deflation to negative territory is an ominous sign of an economic depression. To be avoided like the plague.
EN EL ED EM ON
...take your common sense with you, and leave your prejudices behind...