Taxi Driver Online

Just reading that low productivity will lead to lower inflation.

How on earth does that work out?

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IDFIMH

I think they are getting confused there, what they perhaps meant is that if the economy enters low or negative growth then inflation will fall. productivity is a measure of how well businesses are achieving profits which usually leads to higher wages and more spending.

The current inflation across the world has nothing to do with productivity or growth it is all due to big business trying to screw maximum profits out of the post pandemic bounce to make up for losses during the pandemic. It will now continue to be driven by people wanting more wages to offset inflation and smaller businesses wanting their cut as well as Russia and Opec wanting to line their pockets via their monopoly on oil before we stop using it.

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Soaring inflation which hit a forty one year high in Britain has only interrupted a trend for low interest rates, rather than changing the global economic paradigm, obviously.

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Former taxi driver

well quite a few banks world wide have gone belly up as a result so the sooner it gets back to low interest rates the better or we might have no banks left !

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

Who said that?

Poppycock!!!

It will lead to higher prices.

The more supply of a product on the market the cheaper it will be.

Perhaps whoever made the claim doesn't really know the actual meaning of productivity (which effectively means efficiency).

So maybe they just meant 'productivity' in the sense of being productive.

So 'low productivity' would roughly equate to low economic activity, and thus low inflation

well, having no doctors on a ward = low productivity

giving them a 35% pay rise means increased inflation if they work

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Of all the things ive lost, i miss my mind the most

Please explain that as giving them a pay rise does not increase anything we buy.

It's a niche branch of the subject called wannanomics

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lack of modern legislation is the iceberg sinking the titanic of the transport sector

well yes you do, your taxes buy their time at work in hospitals...if they dont work the hospital spends your tax dollar on agency staff.... its a cash carousel and a 35% pay rise may impact on your income tax loading

no man is an island

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Of all the things ive lost, i miss my mind the most