Comments by "TJ Marx" (@tjmarx) on "UK economy: will latest interest rate hike actually curb inflation?" video.

No. Bailey is telling you an economics 101 principle. Wages are a cost for your employer. When it costs your employer more money to produce the same level of productivity, prices have to go up. In a nutshell that's inflation. It doesn't matter how long it's been since you think you've had a wage increase, that's entirely irrelevant. Wages should only ever go up when productivity increases. Productivity has been decreasing for the last 20 years which is a major component of why this is happening. The unions striking makes this worse. Workers demanding pay rises makes this worse. Yes, high inflation makes it harder to live. That's why it is so important to get under control. There is too much spending taking place for the level of productivity. Stop spending and be more productive at work.
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@jefedelanoche That's complete and utter nonsense
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@nickrails What started the inflationary event across the west, and it really is only limited to western countries sanctioning Russia, is separate to what is preventing inflation from getting under control. Things did start moving in the right direction and then wages starting going up and strikes started going on During periods of high inflation people have to understand that EVERYONE gets poorer. For those right on the edge already high inflation will crush them. The longer high inflation goes on the less the pound is worth domestically and the poorer EVERYONE gets. You simply can not fight "cost of living pressures" (CPI) by increasing wages. That makes things worse two fold. The only thing to do is attack inflation as rapidly as possible and have everyone accept times are going to be tough for awhile. Throwing a temper tantrum helps no one. Everyone needs to stop spending so much, yes you got stuck inside for a bit during covid, time to grow up. Everyone needs to work harder, increased productivity will bring down production costs and allows CPI to reduce as well. We are all active participants in the economy.
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@brad9205 Inflation is the devaluation of currency which can be caused by many factors. That's been too difficult for people here to grasp over the last year and given we are talking about CPI inflation in this thread and not core inflation, it made sense to simply. Particularly to participants whom believe wage raises can't , or perhaps more accurately don't, impact CPI. Monetary inflation can involve an excess of cash in the system (and does in this case) however it's important to understand it doesn't have to. See Lebanon's inflation for an example.
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@davidstrelec2000 Wage increase during an existing high inflation event were inflationary and have frozen the rate of inflation making it difficult to bring down. I wouldn't be surprised if we see it increase next quarter.
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@ltmund cash is only one factor. Again inflation is devaluation, which can occur for many reasons. CPI is a separate thing and really is wrongly used to describe inflation.
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@nickrails Frankly mate, you can disagree with the global monetary system via a YouTube comment all you like but it won't change reality. Where you want to agree or not, what I have described is how it works.
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@ericshang7744 That's a ridiculous and entirely ignorant thing to say, which only demonstrates you have no insight into this matter.
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@nickrails I enjoy that you repeat back to me that there are different kinds of inflation as if I hadn't said that three times already in this thread alone. Again, CPI is not real inflation. No, france did not push down inflation by nationalising energy. They already had nationalised electricity, had already electrified large portions of their economy, have existing reasonable sized oil and gas reserves and worked out a deal between Russia and Algeria to hide their continued reliance on Russian oil and gas by using Algeria as an intermediary trade country. Where as the UK has not electrified it's economy with more than 80% still reliant on gas. Has no oil reserves and less than 1% of demand in gas reserves (more like distribution holding tanks). The UK did not make a secret agreement with Russia either. So the UK was fully exposed when sanctions when on Russia and the UK government decided not to use Russian oil and gas anymore in favour of the far more expensive, difficult to transport and less energy dense US shale gas. Raising wages increases CPI. That is basic economics. France also did not do that despite likewise having not seen meaningful wage growth in a decade. That has helped France but they are far from out of the woods and are showing signs of stalling as is Germany who piggy backed France's deal with Russia and Algeria. No, this isn't a supply issue. There was a supply problem in the market from imports 8 months ago but that has more or less been stored out. Even energy prices have come down since yankville increased their supply of shale gas and standardised their export routes. Yes their is a cash supply problem. That's the point of interest rate hikes. Raising interest rates is the only lever the Bank of England has to combat inflation. Again, what needs to happen is everyone needs to buy less, stop splurging and be more productive for the same pay. That reduces PUC and lowers CPI. You can scream all day about how unfair you think that is or try to make up reasons why it isn't the case. But that's reality and that's what the bank of england is responding too. Instead of striking, NHS workers need to focus on clearing the backlog for the same pay. Rail workers need to focus on actually showing up to work and completing their shifts to run all trains on time. All sectors need to find ways to be more productive on the same pay. No more mental health days or 1 hour lunch breaks. Work like your grandfather did. No one cares how much you hate that idea.
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@ericshang7744 Oh but it does make everyone poorer at the same rate. It's the great equaliser because the pound in your pocket stops being worth a pound and plummets in value at the same rate for everyone. The problem is we have self entitled millennials and zoomers as the main adult generations today, and they have no contact with reality. You're just making yourselves poorer the longer this goes on. The choices are to accept a short stretch of poverty or a long one. That choice is quickly disappearing and the long one will be all that's left soon. Do you really need a lesson in capitalism to understand why your suggestion is absurd?
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@nickrails I'm not sure English is your first language. If you're going to argue with me, at least push back against what I've actually said instead of what you'd find more convenient. I do so enjoy when people go to all the trouble of cherry picking some kind of text from a random website to support their claims, only for it to both be out of date and those bit which remain relevant support what I've said. Quite amusing indeed.
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@stephenbrislen All of them
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@freepeach9631 "Oh poor me struggling worker, doing no work taking a mental health day or some nonsense. I'm going to make nonsense up because I hate that I have responsibility and want to blame those with more money than me..." Grow up. Don't you have someone you should be asking if they'd like fries with that?
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@kinggeoffrey3801 Your employer is not paying you less today than they did 23 years ago, don't talk nonsense. Real wages are not actual wages. Real wages is just another way of talking about buying power, and is not actually anything about your wages.
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@samiosmith You trying a sock puppet account now Nick? Mate, nothing you try is going to recover the fool you've made of yourself.
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@cd7707a False
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@HoistusMaximus This is strawman, I did not make the argument you are claiming. This is a pathetic attempt to shift goal posts. Your argument only shows your own bias, talking about corporations when more than 2/3 of the economy is SME. Wage increases without productivity increase are inflationary. Wage increases without a productivity increase during a high inflationary event are two pronged inflationary. There is no agree or or disagree with that sentiment, that is a fundamental principle of economics and capitalism in general. There is no debate to be had. Wages going up have stalled the inflationary fall. That is an indisputable fact. If you want CPI affordability you have to be more productive.
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@HoistusMaximus lol. There is a great big distance between how productivity and wages impact inflation, and your strawman of profiteering. The actual points of mine you are now referring to is objective fact. It's one of the founding principles of economics under capitalism. Yes, the target for INFLATION is 2-3%. That has absolutely nothing to do with wages, wages NEVER keep up with inflation. That's by design. It's how the system works. The system is not for your benefit, you exist for the benefit of the system. Yes, productivity must increase in line with wages or wage increases become inflationary. This is a core principle of economics and is the driving force behind automation. If you can't keep up you productivity in line with the robots/"AI"/software/touch screens/etc you'll find your industry automated and all the jobs gone.
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@HoistusMaximus ..an now you start with the ad hom and random personal attacks. I think we're done here. P.S. It is not at all objective fact that profiteering has had a far greater effect on CPI than wages as you claim.
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@HoistusMaximus More random personal attacks because you have no argument. Because the world doesn't actually work the way you wish it did. Then you try dismissing reality with an accusation of trolling. You came in with strawman, then some more, zero substance, then went to ad hom and personal attacks. Then yoh show your true colours as a communist by talking down capitalism. You know, the system that gave you this very platform. Mate, if anyone is trolling here it's clearly you. What a fool.
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@gusmanue8337 It's factual, not a deflection. The cash rate was so low because the western world was in a mess financially following the GFC and the cash rate stayed low because the economies never fully recovered. It stayed low all across the OECD. The low cash rate was needed as stimulus. Talking about the cash rate is the actual red herring here. The real problem is low productivity, and that's the fault of the workers.
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@gusmanue8337 Are you a millennial or a zoomer? Which one? 1. The GFC was not the "biggest financial crisis in human history" 🤣 Not by a long way. It wasn't even the biggest financial crisis of the centhry. Compared to the financial crisis' in all of human history the GFC was a blip. 2. Deflation wasn't inevitable from the GFC. Without the lower cash rate for all that time the economy would be completely in the toilet, unemployment would have hit double digits and covid would have collapsed everything completely. Seriously, that isn't an answer at all. The low cash rate was the appropriate response, and keeping it low whilst the economy has been struggling was also appropriate. 3. The low cash rate has not created the housing bubble. The housing bubble is created by a bunch of factors. But the biggest contributor is highly controlled artificial demand which is greater than supply by just enough to keep the market hot and property values increasing within set. It's controlled through Westminster via carefully configured policy settings for things like immigration, land releases and the big one, quota based housing affordability schemes. These things, but in particular housing affordability schemes, create artificial demand for inflated prices that the market would not naturally bear. Ironically it's the housing market that would experience deflation without the affordability schemes, as the market would cool to prices people could afford. This is actually the most universal source of corruption one could point to in politics, because they do this out of self interest. They all own investment properties. 4. This high inflationary event wasn't caused by the low cash rate at all. It was caused by a complex combination of factors with the biggest factors being the sanctions placed on Russia triggering a global oil and gas supply chain issue and low overall long term productivity across the economy. Those yankville led Russian sanctions by the way, caused Europe to switch from Russian gas, to inferior yankvillian shale gas which saved their struggling sector. Shale gas has 1/8th the energy storage and is 4x more expensive. It's so bad that after signing the EU away to yankvillian shale gas, Macron rushed to Algeria to knock out a deal between France, Algeria and Russia to backdoor buy Russian gas through Algeria. They didn't even try to hide it, it was all over France24 at the time. A week later, Germany struck a deal with France that France would buy Russian gas through Algeria and sell some of it to Germany. This keeps their gas dependent industries competitively cheaper than the rest of Europe. 5. Inflation is stalling because of wage growth in the face of almost flat productivity.
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