Are we starting to see the wage increase vs inflation increase death spiral?

[Grim5]

We don’t have a lack of money though, we have a lack of balance. Too much is going to the top rather than the bottom.

This is the biggest problem with capatalism. When you start your economy, on day one everyone is at the same level of wealth but then over time wealth starts to aggregate toward a small minority of the population at the top and this gets worse, not better, over time no matter what the government does.

The only way to fix the problem is a great reset. Every few decades a reset must come along to put everyone back to an even playing field.

The last great reset was world war 2, we need another reset. Unfortunately there is only two ways to conduct a great reset, you either switch to a communist economy for some time and then back to capatilism, or you have a quick sharp destruction of wealth and assets through war.

 

[Roar87]

This is the biggest problem with capatalism. When you start your economy, on day one everyone is at the same level of wealth but then over time wealth starts to aggregate toward a small minority of the population at the top and this gets worse, not better, over time no matter what the government does.

The only way to fix the problem is a great reset. Every few decades a reset must come along to put everyone back to an even playing field.

The last great reset was world war 2, we need another reset. Unfortunately there is only two ways to conduct a great reset, you either switch to a communist economy for some time and then back to capatilism, or you have a quick sharp destruction of wealth and assets through war.

Yeah there was no wealth disparity from Communism, they didn't create a class of people called "Oligarchs" that earned their money through corruption rather than entrepreneurship and adding value to the economy by creating sought after goods and services. We need a Communist community and a few more people like Roman Abramovich and Putin.

 

[200sols]

This is the biggest problem with capatalism. When you start your economy, on day one everyone is at the same level of wealth but then over time wealth starts to aggregate toward a small minority of the population at the top and this gets worse, not better, over time no matter what the government does.

The only way to fix the problem is a great reset. Every few decades a reset must come along to put everyone back to an even playing field.

The last great reset was world war 2, we need another reset. Unfortunately there is only two ways to conduct a great reset, you either switch to a communist economy for some time and then back to capatilism, or you have a quick sharp destruction of wealth and assets through war.

Lol. War or communism. No. Neither have ever provided the outcomes you claim.

 

[Hades]

And sucks to have a small business which is based purely around discretionary spend.

I'm sorry to hear that. But running a business, even one that depends on discretionary spend, possibly puts you in a better position than employed people. Employed people have no control over their job and could be made redundant overnight. But a small business owner could try to pivot to a different market.

I've had a cracking year so far. Motorcycle written off, broken leg, broken hand, in hospital with a clot on the lung and then when I get back to work I'm told I'm on the list of people at risk of redundancy (will find out in a week or two). Still, it's only health and money eh

 

[jonneymendoza]

I'm sorry to hear that. But running a business, even one that depends on discretionary spend, possibly puts you in a better position than employed people. Employed people have no control over their job and could be made redundant overnight. But a small business owner could try to pivot to a different market.

I've had a cracking year so far. Motorcycle written off, broken leg, broken hand, in hospital with a clot on the lung and then when I get back to work I'm told I'm on the list of people at risk of redundancy (will find out in a week or two). Still, it's only health and money eh

Yes it does. i run my own business but a one man band consultant and i go and do projects that spam between 6-12 months each for clients.

SO far i thank god that business is going ok during covid and also during the IR35 reform(i work exclusively outside ir35) and so far i am lucky and blessed .

All we can do is make do with what cards we have been delt with and make the most of it

 

[Trifid]

I'm sorry to hear that. But running a business, even one that depends on discretionary spend, possibly puts you in a better position than employed people. Employed people have no control over their job and could be made redundant overnight. But a small business owner could try to pivot to a different market.

I've had a cracking year so far. Motorcycle written off, broken leg, broken hand, in hospital with a clot on the lung and then when I get back to work I'm told I'm on the list of people at risk of redundancy (will find out in a week or two). Still, it's only health and money eh

It's not me, but eating out and other recreational places out would be where I'd be cutting first.

 

[Andrew_McP]

How did we get here?

1) "Golden Age" of New Labour, who rode high on the crest of a taxation wave rolling in from the monstrous success of The City.

2) Monstrous success turns out to be more monstrous than success. Golden Age bubble pops. Conservatives get lumbered with sorting out Gordon Brown's deregulated mess.

3) Central banks decide This Time It's different, and you can print money and keep interest rates silly-low forever. Conservatives buy into this myth, making them distinctly un-Conservative. But asset prices rise, which makes them look successfully conservative rather than economic fibbers.

4) Covid comes along and gives this new equilibrium a good shove. Suddenly the Wile-E-coyote economy looks down and realises it's in mid-air. All that printed money looked like a comfy mattress to fall onto. Turns out it's a bed of inflationary nails.

Neither the population, our leaders, or our economists have enough economic literacy or experience of the cancer that is inflation to get us out of this mess effectively. Nobody chooses pain, so pain will happen to us the hard way. And it's been coming ever since 2008, as the Russians and Chinese are all too aware. I'm sure Ukraine is as much an attack on our economic instability as it is on territorial expansion. Authoritarian regimes can survive economic stress by imposing tough restrictions. We'll just argue about what pronouns the restrictions should have.

IMO. Nobody ever accused me of being an optimist though. I remember us living on basic rations and a lot of Knorr Chef's Square Shaped Soup in the 70s though, when Mum daren't put the prices up in her hairdressing business because so many people were cutting back... or not cutting back IYSWIM. I may be scarred for life... though my brother had the same experience and he's more successful and optimistic than a successful thing on national successful day, so it's possible I'm just a whiny git living a self-fulfilling prophecy.

 

[jonneymendoza]

How did we get here?

1) "Golden Age" of New Labour, who rode high on the crest of a taxation wave rolling in from the monstrous success of The City.

2) Monstrous success turns out to be more monstrous than success. Golden Age bubble pops. Conservatives get lumbered with sorting out Gordon Brown's deregulated mess.

3) Central banks decide This Time It's different, and you can print money and keep interest rates silly-low forever. Conservatives buy into this myth, making them distinctly un-Conservative. But asset prices rise, which makes them look successfully conservative rather than economic fibbers.

4) Covid comes along and gives this new equilibrium a good shove. Suddenly the Wile-E-coyote economy looks down and realises it's in mid-air. All that printed money looked like a comfy mattress to fall onto. Turns out it's a bed of inflationary nails.

Neither the population, our leaders, or our economists have enough economic literacy or experience of the cancer that is inflation to get us out of this mess effectively. Nobody chooses pain, so pain will happen to us the hard way. And it's been coming ever since 2008, as the Russians and Chinese are all too aware. I'm sure Ukraine is as much an attack on our economic instability as it is on territorial expansion. Authoritarian regimes can survive economic stress by imposing tough restrictions. We'll just argue about what pronouns the restrictions should have.

IMO. Nobody ever accused me of being an optimist though. I remember us living on basic rations and a lot of Knorr Chef's Square Shaped Soup in the 70s though, when Mum daren't put the prices up in her hairdressing business because so many people were cutting back... or not cutting back IYSWIM. I may be scarred for life... though my brother had the same experience and he's more successful and optimistic than a successful thing on national successful day, so it's possible I'm just a whiny git living a self-fulfilling prophecy.

You are misisng brexit and the war between ukraine and russia

 

[Hades]

It's not me, but eating out and other recreational places out would be where I'd be cutting first.

We rarely eat out anyway. But we are very much cutting back on non-essentials (and had started doing that even before my job news). We have some big monthly expenses we can't cut out. But optional things are getting cut out while we see how the world pans out.

 

[R.P.L]

This is the biggest problem with capatalism. When you start your economy, on day one everyone is at the same level of wealth but then over time wealth starts to aggregate toward a small minority of the population at the top and this gets worse, not better, over time no matter what the government does.

I think it depends on how you define capitalism. I would say that problems such as wealth inequality between regular workers and people at the top of huge corporations, as well as rampant inflation, are largely a result of pursuing a growth and inflation at all costs policy, which is by no means a cornerstone of capitalism (although might be an inevitable result of capitalism due to human greed).
Pumping money into an economy when production is high makes sense in some ways, as the value of fiat currency is backed by the production within the economy. Pumping cash into the economy during a slowdown will cause problems if it doesn't successfully trigger an increase in productivity, which is what we're seeing now.

 

[Andrew_McP]

You are misisng brexit and the war between ukraine and russia

I got Ukraine, but feel free to add "Brexit and" before "Covid".

Edit as I engage brain:
1) I encourage the use of "Russian invasion" rather than "war". We're not the BBC, tripping over truth while racing towards impartiality.
2) I'm wary to involve Brexit, because while there will be a Brexit factor, it is way, way, way too easy to hide behind that blame smokescreen and face the fact that we're not alone with these issues, and Brexit's roots lie in the same problems -- housing, wages, social infrastructure -- which have been made worse over the whole of the 21st century by short-sighted politicians and voters of all persuasions.

 

[Hades]

Neither the population, our leaders, or our economists have enough economic literacy or experience of the cancer that is inflation to get us out of this mess effectively.

This is my big concern. In my opinion we don't have leaders of sufficient quality and experience (on either side of the house) to have seen this coming or to dig us out of it. There has been a constant choice of spending money we don't have in the short term to avoid them having to make difficult decisions while they are in office. They want the next person to deal with it. Ad infinitum. It's like pulling back an elastic band until it gets tighter and tighter. Something has to give eventually.

 

[mid_gen]

This is my big concern. In my opinion we don't have leaders of sufficient quality and experience (on either side of the house) to have seen this coming or to dig us out of it. There has been a constant choice of spending money we don't have in the short term to avoid them having to make difficult decisions while they are in office. They want the next person to deal with it. Ad infinitum. It's like pulling back an elastic band until it gets tighter and tighter. Something has to give eventually.

It's even worse than that.....we've had a decade of economic mismanagement with public services and infrastructure cut back to the bone, so we don't have the structural foundation to build productivity and growth. Combine that with the economic hari-kiri of Brexit and the Ukraine war (which as pointed out by other posters, is as more an attack on Western economies than a land-grab). We are pretty screwed.

 

[jonneymendoza]

Whats funny is that yea we can bash and laugh at the state of things in the UK but honestly the same issues can be copied and pasted in most western countries.

Most wester countries are having the same issues as us!!!

The world leaders are all brainless and have been for the last 20 years

 

[Hades]

Whats funny is that yea we can bash and laugh at the state of things in the UK but honestly the same issues can be copied and pasted in most western countries.

Most wester countries are having the same issues as us!!!

The world leaders are all brainless and have been for the last 20 years

Not just Western countries. Sri Lanka is properly screwed right now.

Non-essential petrol sales halted for two weeks in Sri Lanka

The country says it is saving its limited fuel supplies for vehicles used for essential services.

www.bbc.co.uk

 

[Mr Jack]

Whats funny is that yea we can bash and laugh at the state of things in the UK but honestly the same issues can be copied and pasted in most western countries.

Yes and no. Take the living cost crisis: yeah, all of Europe is facing big price rises but it's only in a couple of countries that this hike is coming on the back of a decade of flat wage growth and weakening of the social safety net. Britain has put itself in a uniquely bad position to cope with the current spate of problems.

 

[Doobedoo]

Not just Western countries. Sri Lanka is properly screwed right now.

Non-essential petrol sales halted for two weeks in Sri Lanka

The country says it is saving its limited fuel supplies for vehicles used for essential services.

www.bbc.co.uk

Bloody brexit

 

[Wizzkidy]

I count myself lucky as I have a decent job with decent benefits, but it's been a tough 20 years to get to this level for me I didn't just walk into a high paid job. It's all the low paid workers I feel for and my young children that one day will need to go out into the world.

How are they going to survive? I don't even own my own house and probably never will so they will have nothing to fall back onto. I will save and put money away for them but even then it won't be earth shattering amounts. I really do worry about the future of this county

 

[the shadow]

How did we get here?

1) "Golden Age" of New Labour, who rode high on the crest of a taxation wave rolling in from the monstrous success of The City.

2) Monstrous success turns out to be more monstrous than success. Golden Age bubble pops. Conservatives get lumbered with sorting out Gordon Brown's deregulated mess.

3) Central banks decide This Time It's different, and you can print money and keep interest rates silly-low forever. Conservatives buy into this myth, making them distinctly un-Conservative. But asset prices rise, which makes them look successfully conservative rather than economic fibbers.

4) Covid comes along and gives this new equilibrium a good shove. Suddenly the Wile-E-coyote economy looks down and realises it's in mid-air. All that printed money looked like a comfy mattress to fall onto. Turns out it's a bed of inflationary nails.

Neither the population, our leaders, or our economists have enough economic literacy or experience of the cancer that is inflation to get us out of this mess effectively. Nobody chooses pain, so pain will happen to us the hard way. And it's been coming ever since 2008, as the Russians and Chinese are all too aware. I'm sure Ukraine is as much an attack on our economic instability as it is on territorial expansion. Authoritarian regimes can survive economic stress by imposing tough restrictions. We'll just argue about what pronouns the restrictions should have.

IMO. Nobody ever accused me of being an optimist though. I remember us living on basic rations and a lot of Knorr Chef's Square Shaped Soup in the 70s though, when Mum daren't put the prices up in her hairdressing business because so many people were cutting back... or not cutting back IYSWIM. I may be scarred for life... though my brother had the same experience and he's more successful and optimistic than a successful thing on national successful day, so it's possible I'm just a whiny git living a self-fulfilling prophecy.

 

[Mrwong]

I count myself lucky as I have a decent job with decent benefits, but it's been a tough 20 years to get to this level for me I didn't just walk into a high paid job. It's all the low paid workers I feel for and my young children that one day will need to go out into the world.

How are they going to survive? I don't even own my own house and probably never will so they will have nothing to fall back onto. I will save and put money away for them but even then it won't be earth shattering amounts. I really do worry about the future of this county

There is no future in this country, it is becoming a dead country. I plan to leave this sinking ship and move abroad.