The left, inflation and monetary policy

Workers are being made to pay through inflation the cost of the pandemic which could have been financed through a wealth tax

Andrew Jackson / July 29, 2022 https://canadiandimension.com/

Banksy mural in Midwood, Brooklyn. Photo by Joshua Geyer.

The return of high inflation after the global pandemic poses a major political and analytical challenge for labour and the left. On top of cuts to real wages resulting from the wide gap between inflation and pay, high and rising inflation has led central banks, including the Bank of Canada, to hike interest rates sharply. This is raising the debt servicing costs of households, businesses and governments and making new borrowing more expensive.

If and as interest rates result in slowing economic growth and a possible recession, unemployment will rise, poverty will increase, and the squeeze on wages will intensify. Workers are being made to pay through inflation the cost of the pandemic which ……………………… Read more