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John The Pessimist

Wages To Rise By 4%!

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It's probable, if little slack around.

Much of what we do does not compete. Services and public sector.

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The main driver for wage growth is wage growth expectation. This is really a wishful thinking piece but if enough people believe it,it will happen.

If we can get 10% wage growth over the next few years that will reduce all debt by 10% (and that's a lot of money).

This could link in with what Carney's speech. I read some where that increasing interest rates can increase inflation expectation. The lack of volatility just means we have been stuck with nothing moving and we do need something to move to get out of this hole.

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The main driver for wage growth is wage growth expectation. This is really a wishful thinking piece but if enough people believe it,it will happen.

If we can get 10% wage growth over the next few years that will reduce all debt by 10% (and that's a lot of money).

This could link in with what Carney's speech. I read some where that increasing interest rates can increase inflation expectation. The lack of volatility just means we have been stuck with nothing moving and we do need something to move to get out of this hole.

I've been trying to think through Mark Carney's speech in the last few days. I think you're not far off!

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The main driver for wage growth is wage growth expectation. This is really a wishful thinking piece but if enough people believe it,it will happen.

If we can get 10% wage growth over the next few years that will reduce all debt by 10% (and that's a lot of money).

This could link in with what Carney's speech. I read some where that increasing interest rates can increase inflation expectation. The lack of volatility just means we have been stuck with nothing moving and we do need something to move to get out of this hole.

Productivity growth is weak. I can't see companies and in particular the public sector ramping up the pay settlements considering the dire state of the public finances. Edited by Ash4781

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I've been trying to think through Mark Carney's speech in the last few days. I think you're not far off!

Also, to add. At the end Mark says "we're not following a course, but the decision is based on the data". Well they cant really control the data, and its starting to make sense. He had to say that at the end because they ARE following a predetermined course...

Edited by 200p

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There's no evidence whatsoever of an upward trend in current prices either here or in Europe. Quite the opposite in fact. Understandably, the more capital that's captured and fixed in the housing ponzi the less there's available to the rest of the economy.

UK+vs+EZ+CPI.png

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Productivity growth is weak. I can't see companies and in particular the public sector ramping up the pay settlements considering the dire state of the public finances.

When you have debt like ours inflation is the only way out or default of course. Inflation will always be anchored so long as wages don't increase. How ever it might be elastic tied to the anchor not rope.

But don't take what I say seriously I am making this up as I go along :P

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The main driver for wage growth is wage growth expectation. This is really a wishful thinking piece but if enough people believe it,it will happen.

If we can get 10% wage growth over the next few years that will reduce all debt by 10% (and that's a lot of money).

This could link in with what Carney's speech. I read some where that increasing interest rates can increase inflation expectation. The lack of volatility just means we have been stuck with nothing moving and we do need something to move to get out of this hole.

Only if the debt didnt grow and the government taxed all that increase then paid the debt off with it instead of spunking it on vote buying policies.

Edited by Corruption

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I have already had about 3% from one of my employers (social care agency). Won`t help house prices because they are based on a decade + of Liar Loans and banking fraud.

I had just under 4% this year - thought I'm in sales, so will probably just get a bigger target.

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Just had one of my odder thoughts.

Capital and labor are like rival siamese twins nether one should dominate. If one kills the other they both die.

We used to rely on unions to get wage increases but since they have killed off the unions, There isn't anything to restore balance.

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Just had one of my odder thoughts.

Capital and labor are like rival siamese twins nether one should dominate. If one kills the other they both die.

We used to rely on unions to get wage increases but since they have killed off the unions, There isn't anything to restore balance.

Tories' dilemma: they destroyed the private means of securing bargaining power, and the state has to step in to prop up incomes.

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have an even odder one for you. I've come to the conclusion that Labour consists of two parts.

1. It is an input, a cost to the capitalistic process....just like a machine and has to compete with machines.

2. It is the object of production, it creates the demand, of functioning markets.

This is key because it is not just capital versus labour in some unique tussle.

We need to be clear headed about this as we go forward as it is key to try and create demand and not to crush people and see economies slow. The capitalist process need demand to still be commanded by people or it will cast them aside.

I agree, but its where and how to concentrate the labour/people power to best effect. In one sense you could argue for an automation tax, for example make firms than use unmanned check outs pay a special tax that is higher than the cost of employing somebody. That might be fine with self services checkouts as most people hate them and they don't improve quality of life, but it does mess up other areas if applied to widely, for instance online film streaming is probably considered good despite the fact it is killing off video/DVD hire shops.

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Just had one of my odder thoughts.

Capital and labor are like rival siamese twins nether one should dominate. If one kills the other they both die.

We used to rely on unions to get wage increases but since they have killed off the unions, There isn't anything to restore balance.

Both sides are trapped- capital must squeeze down wages to compete-and labor cannot exert any leverage in a globalized labor market.

It's a self reinforcing circle- the more demand falls due to low wages the more employers will try to cut wages or automate jobs in order to compete for that shrinking demand- which reduces demand even more.

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I agree, but its where and how to concentrate the labour/people power to best effect. In one sense you could argue for an automation tax, for example make firms than use unmanned check outs pay a special tax that is higher than the cost of employing somebody. That might be fine with self services checkouts as most people hate them and they don't improve quality of life, but it does mess up other areas if applied to widely, for instance online film streaming is probably considered good despite the fact it is killing off video/DVD hire shops.

I don't see Capitalism as end though, I see it as a means to an end, and taxing productivity that is not labour driven is on a par with creating imaginary demand in terms of preventing it reaching that end, falsely extending it's useful purpose for its own sake.

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