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May 15, 2013


Ralph Musgrave

Here is another conclusion. As Chris rightly says, productivity has fallen since 2007. Yet pay increases have been running at about 2%pa since then. In other words about 2% of the 2%+ inflation we currently experience is down to a determination by employees (poorly and well paid) to get their 2% annual pay increase despite their producing less, rather than more.

But that 2%+ inflation stops government boosting demand and cutting unemployment. So who is to blame for unemployment? It’s everyone who demands a 2% or more pay increase despite their failing to produce more.


Can you say that China plays a big role on this?!

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