Households are suffering the worst squeeze in real incomes since 1945. Real pay fell by 2.5 per cent the last quarter of 2022.
Inflation
Since the 2008 crash governments have increased the money supply, with no improvement in productivity. This imbalance is the main cause of the current inflation.
Inflation as a result of government policy since 2008 has now worked through to consumer prices. The underlying economics of inflation are the result of a poor bargain between capitalists and wage-earners.
Mark Carney, former governor of the Bank of England, blames Britain’s inflation on Brexit. But inflation is, and always has been, a feature of capitalism.
Government debt headlines when it goes up or when the government says it wants to reduce it. The level of debt has spiralled out of control, and capitalism has no answer.
The rise in the consumer prices index in the year to July was a little lower than June – but prices are still rising faster than they have done for years.
Workers in many sectors have secured more pay through successful disputes. But the next round of claims will see employers try to regain some ground.
The Autumn Statement changes nothing for workers, who must take matters into their own hands. Fighting for increased pay is essential, but on its own not enough.