Very lightweight report by Paul Mason on Channel 4 News this evening.
He told us (with exaggerated ponderousness) that inflation going up with wages remaining static means big trouble for the Conservative party.
However he did not explain how inflation can go up in any sustained way without wages going up.
As the major component of inflation IS wage costs it does not seem possible.
Obviously raw materials can go up in price, but manufacturing is a small part of the British economy.
Excessive profiteering can take place, but usually competition drives down prices.
It is possible we are in a "new paradigm" where "somehow" inflation goes up but wages remain static but one would expect the Economics Editor of Channel 4 News to explain the mechanics of this new paradigm.
Not for the first time I am left with the suspicion that Paul Mason is a fraud who does not really understand economics at all.
http://www.channel4.com/news/catch-up/
He told us (with exaggerated ponderousness) that inflation going up with wages remaining static means big trouble for the Conservative party.
However he did not explain how inflation can go up in any sustained way without wages going up.
As the major component of inflation IS wage costs it does not seem possible.
Obviously raw materials can go up in price, but manufacturing is a small part of the British economy.
Excessive profiteering can take place, but usually competition drives down prices.
It is possible we are in a "new paradigm" where "somehow" inflation goes up but wages remain static but one would expect the Economics Editor of Channel 4 News to explain the mechanics of this new paradigm.
Not for the first time I am left with the suspicion that Paul Mason is a fraud who does not really understand economics at all.
http://www.channel4.com/news/catch-up/
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