Unemployed Should Work in House prices and the economy Posted December 15, 2010 Perhaps it is because the good life style built on exploiting the rest of the world (colonisation, plunder, puppet governments etc) from the past few centuries has to come to an end when the rest of the world get their act together? We can hope, but it certainly hasn't happened yet. Think "capital" is paying people more in China compared to last year (wage inflation double digits) - sounds good to chinese labours. Brazillian are having a very good time right now too. Food inflation was also double digits last month in China. The Chinese workers are barely making any gains. And once they manage to, capital will disappear to the next labour pool. Brazil is slightly different being a largely commodity based economy, it will fair better. Capital will pay the market rate based on productivity. The last time I check, the emerging market consumers are buying more things than ever. Because British consumers can't buy, it doesn't means the rest of the world also can't buy. Did you not notice that the world is buying petrol and other commodities until the prices of those stuffs are rising in double digits (of course BoE will pretend not to see that). Or maybe it is not Capital vs Labour but supply vs demand? Capital will pay as little as it can get away with, which is why it causes it's own problems. It's not really a market when you have little choice if you don't want to starve, which is why unemployment benefits are necessary to the system.