Save the Humans has a good post on inflation – the silent killer.
It’s interesting that Labour is the party that’s let it get away. Because with inflation, prices go up and that affects the workers more. They can’t adsorb it as much as those on higher incomes. They have to go to their employers, and ask more often for larger pay raises that they may not get, especially if the employer can’t find a way to pay for pay increases
So inflation puts power in the hands of employers in a sense. But it’s too subtle for many to understand, so an important issue just gets ignored, and in the meantime the battle is lost, meaning that even greater pain is in store for the guy who’s prepared to do what it takes to get it back under control.
That would be the National party one assumes.
He quotes Anti-dismal, and I have to agree too.
I find this [inflation getting out of control] all very depressing. In the country that’s done more than any other to work to insulate its central bank from political pressures and to ensure bank independence, we’ve proven that a sufficiently determined government can completely erode that independence by appropriate eroding of the bright-line rules that characterized previous policy targets agreements, appointment of a dovish Governor, and sufficient winks and nudges about that there will be no consequence whatsoever to the Governor’s ignoring of the target band.