I can have a rant now I have my keyboard back. High wage inflation will give short term relief to struggling Brits but will exacerbate long term wider inflation because the root cause (Gov debt) is not being tackled, higher interest rates and giving in to wage demands is NOT the answer for this debt related inflation. Only tax, rises and cuts to public spending, while paying off the debt will work but this Gov can't to that as it would mean accepting blame for their own years of catastrophic financial mismanagement at the hands of the Battenburg blackmailers. Only a new Government that can quite rightly blame the Tories for belt tightening measures (like after WW2) can sort out this mess. If Britain were a business, the administrators would have been called in a long time ago!
Remember Germany after WW1 when people were going around with wheelbarrows of money (because of inflation), then someone would steal the wheelbarrow and leave the cash as the wheelbarrow was worth more? That is what will happen here if we just keep increasing interest rates and wages instead of tackling the Gov debt mountain. Not only will the debt not go away, it will get worse as the (so called) Gov is having to pay ever increasing amounts of interest on their £Trillions of debt.
Interest rate rises are good for cooling inflation caused by a booming economy, while Gov debt is low. Our economy is NOT booming and Gov debt is criminally high!
Remember Germany after WW1 when people were going around with wheelbarrows of money (because of inflation), then someone would steal the wheelbarrow and leave the cash as the wheelbarrow was worth more? That is what will happen here if we just keep increasing interest rates and wages instead of tackling the Gov debt mountain. Not only will the debt not go away, it will get worse as the (so called) Gov is having to pay ever increasing amounts of interest on their £Trillions of debt.
Interest rate rises are good for cooling inflation caused by a booming economy, while Gov debt is low. Our economy is NOT booming and Gov debt is criminally high!
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