As #retail#inflation continues to fall (but of course prices keep going up, just more slowly), will the #BoE think its #interestrate policy is working or carry on taking the Catherine Mann position that more pain is needed to get down to the target of 2% even if this means a #recession...
It'll be more 'if its not hurting its not working' rhetoric from Threadneedle St. I suspect, claiming its all a 'price worth paying' when its not them that are paying... but hey, I've said all this before!
If the UK drops into #recession in the next 6-9 months, it will have been engineered by the BoE via #interestrates rises;. the Q. then is it in whose interest is an engineered recession?
One might conclude that the #Tories want a term out of office to firmly attach the blame for the UK's economic worsening malaise on Labour;
given #voters seldom vote for the present Govt. when economies are in trouble, a recession will give the Tories the rest in opposition they now seem to want/need?
Well headline #inflation is down to 6.7% (in figures released this morning).... but will the #BankofEngland care... No!
They will only be satisfied when they have forced a #recession, plunged #workers into (further) penury, raised #uneployment & by doing so neutered workers power to organise through fear of being out of work.
Its the toxicity of the Phillips Curve written into policy making....
Or is it a dawning realisation that the UK economy is a dysfunctional economy run with a stacked deck, that is engineered to benefit a small rich elite?
I've spoken to so many ex-students who now want meaningful jobs rather than enter a corrupt rat race.
Indeed, we’ve just experienced what Goldman Sachs is calling the “soft landing summer.” #Inflation is down by almost two-thirds since its peak in June 2022, & this has happened w/o the #recession & huge #job losses many #economists insisted would be necessary. Real #wages, especially for nonsupervisory #workers, are significantly higher than they were before the pandemic.
Oh, & to correct a widespread misconception: No, these figures don’t exclude #food & #energy prices.
In my completely uninformed opinion, employers in specific industries (i.e., tech and media) are talking themselves into a recession, and using this spectral recession as a cudgel against workers. By creating an atmosphere of artificial scarcity and uncertainty, executives can deny overtime, cut budgets, freeze hiring, lay off workers, and replace full-time salaried positions with part-time contract ones, all while continuing to pull in ridiculously large salaries.
Make CEOs Take Pay Cuts
If firms are feeling the pinch of economic pressure, then executives should share in their employees’ sacrifices @newrepublic by Boen Wang #executivepay#recession