Boris Johnson tells workers to accept pay cuts or UK faces 1970s–style ‘stagflation’

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    • #490662
      JonLP
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      Workers will have to settle for real-terms pay cuts if Britain is to avoid 1970s-style “stagflation” and soaring interest rates, Boris Johnson has warned.

      In a major speech, the prime minister performed a startling U-turn on a promise – made just months ago – to create a high-wage economy, instead highlighting the pain to come from rising inflation.

      “We cannot fix the increase in the cost of living just by increasing wages to match the surge in prices,” Mr Johnson said, in a speech billed as the latest reset of his troubled premiership.

      He said: “If wages continually chase the increase in prices, then we risk a wage-price spiral such as this country experienced in the 1970s. Stagflation – that is inflation combined with stagnant economic growth.

      https://www.independent.co.uk/news/uk/politics/boris-johnson-pay-cuts-stagflation-b2097501.html?utm_content=Echobox&utm_medium=Social&utm_campaign=Main&utm_source=Twitter#Echobox=1654784004

       

      Let this radicalize you rather than lead you to despair - Mariame Kaba

      Like many public systems, GOP want to rip the battery out + say the whole car doesn’t work, so they can sell it for parts - AOC

    • #490663
      Punxsutawney
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      He’s just channeling the opinion of Very Serious Economists such as one of our favorites, Larry Summers. Anything to crush labor, the usual operating principle of guys like these. I thing the beginning of the piece that follows fits better. Basically Corona virus business and supply chain problems and sanctions blowback / higher commodity prices to which I would add intentional lack of supply from the oil companies and Saudi Arabia.

      https://www.nakedcapitalism.com/2022/06/what-is-really-causing-our-inflation-inflation-in-a-time-of-corona-and-war.html

       

       

      In America, “Liberty” means “Free to Die in Service of Capital” - Amfortas the hippie.

      Most of today’s elites have the moral and social reasoning capacities of spoiled toddlers.

      “People of privilege will always risk their complete destruction rather than surrender any material part of their advantage...but the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-right. The sensitivity of the poor to injustice is a trivial thing c

      • #490715
        Cold Mountain Trail
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        I’ll go with bull crap for $1000 too, Art.

        Yep, wherever there’s an economic crisis you don’t have to look very very far to find the “crush labor” piece in it.  Sometimes a small piece, sometimes the main piece.

        And if you listen to some economists, the “crush labor” piece was the main piece of the 70’s so-called “stagflation” which was actually capital strike, with the OPEC piece OK’d by the US too.

        Labor managed to survive that round, but the Reagan round was the death blow.

        As for Boris, he is a parrot to power who just upgraded his own digs.  Apparently his furnishings are a matter of state, which UK proles must pay for, just like they’re paying for the demise of NHS and everything else that remains of the UK’s welfare state.  Inflation, you know.

        Inflation caused by the monopolization of just about everything by the global 1%.

        Y’all have to pay for that, too.

         

    • #490665
      djean111
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      Looks like only 59% of his party voted for him.  But he feels triumphant.  And cocky.

      Wonder if Biden is going to try the same bullshit, with wages and the safety net.  Whilst folks are all hopeful about Bernie’s Social Security enhancement.

      America is not a country, it's just a business. (Brad Pitt, Killing Them Softly)

      "Sometimes when I try to understand a person's motives, I play a little game. I assume the worst. What's the worst reason they could possibly have for saying what they say and doing what they do? Then I ask myself, 'How well does that reason explain what they say and what they do?'" GRRM

      A YouTube comment – we need new conspiracy theories – the old ones have all come true.

    • #490670
      HassleCat
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      • Total Posts: 9,177

      Straight from the supply siders handbook. C’mon Boris. Just say it. A rising tide lifts all boats. This should hasten the divorce from Northern Ireland. Maybe Scotland is next?

    • #490697
      Babel 17
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      Either Johnson arranges for an end to the embargo on Russian fuel, or he should face serious protests calling for his resignation. If the stink of his failure starts clinging to his party, and his important supporters, they can force that by threatening him with no future after he is out of office. A few cabinet resignations would accelerate things.

      They all want a future, and going down with the HMS Boris Johnson as it sinks would preclude that.

      https://www.bbc.com/news/uk-politics-58574180

      Don't Kill the Whale
      Don't feed the trolls

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