Comments by "Guinness" (@GuinessOriginal) on "The UK Economy Is In Deep Sh*t" video.

It’s a profits price spiral
8
@sirpatrick187 exactly. Profits have had records increases ads are at record levels, coincidentally at the same time as record inflation. The only wages they have gone up is CEO wages, for example the CEO of Sainsbury’s saw his wages go up from £3m a year to £4.5m a year, but I don’t hear the government blaming his wage rises for inflation and suggesting he takes a pay cut to bring it down
2
@jam99 inflation isn’t being caused by increasing wages or an expansion of the money supply, it’s being caused by increasing profits. The idea behind raising interest rates is to slow down investment and the rate of growth is the money supply, which in turn shows wage growth and thus inflation, IF inflation is being caused by wage rises and money supply growth. But it isn’t.
1
@jam99 cpi is a joke measure and isn’t a real definition of inflation at all. Not only are housing and utility and fuel costs important parts of the measure of inflation, the weighting of their importance has increased dramatically over the last 50 years as housing and interrupt and fuel costs have risen from between 15-20% of average household expenditure to well over 50% today. It makes no difference to me whether he mentions profits or not, the fact remains were are in a profits price spiral caused by monopolistic and oligopolistic markets and this artificially high prices causing supernormal profits
1