Just reading that low productivity will lead to lower inflation.
How on earth does that work out?
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| Author: | Sussex [ Tue Apr 11, 2023 10:57 am ] |
| Post subject: | Any Economists out there? |
Just reading that low productivity will lead to lower inflation. How on earth does that work out?
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| Author: | edders23 [ Tue Apr 11, 2023 1:18 pm ] |
| Post subject: | Re: Any Economists out there? |
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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| Author: | jimbo [ Tue Apr 11, 2023 2:07 pm ] |
| Post subject: | Re: Any Economists out there? |
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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| Author: | edders23 [ Tue Apr 11, 2023 3:13 pm ] |
| Post subject: | Re: Any Economists out there? |
jimbo wrote: 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. 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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| Author: | Rebel-Taxi-Driver [ Sun Apr 16, 2023 7:30 am ] |
| Post subject: | Re: Any Economists out there? |
Who said that? Poppycock!!! It will lead to higher prices. The more supply of a product on the market the cheaper it will be. |
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| Author: | StuartW [ Sun Apr 16, 2023 7:03 pm ] |
| Post subject: | Re: Any Economists out there? |
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 
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| Author: | wannabeeahack [ Mon Apr 17, 2023 3:38 pm ] |
| Post subject: | Re: Any Economists out there? |
Sussex wrote: Just reading that low productivity will lead to lower inflation. How on earth does that work out? 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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| Author: | heathcote [ Mon Apr 17, 2023 8:26 pm ] |
| Post subject: | Re: Any Economists out there? |
wannabeeahack wrote: Sussex wrote: Just reading that low productivity will lead to lower inflation. How on earth does that work out? well, having no doctors on a ward = low productivity giving them a 35% pay rise means increased inflation if they work Please explain that as giving them a pay rise does not increase anything we buy. |
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| Author: | edders23 [ Mon Apr 17, 2023 9:31 pm ] |
| Post subject: | Re: Any Economists out there? |
heathcote wrote: wannabeeahack wrote: Sussex wrote: Just reading that low productivity will lead to lower inflation. How on earth does that work out? well, having no doctors on a ward = low productivity giving them a 35% pay rise means increased inflation if they work 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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| Author: | wannabeeahack [ Wed Apr 19, 2023 6:58 pm ] |
| Post subject: | Re: Any Economists out there? |
heathcote wrote: wannabeeahack wrote: Sussex wrote: Just reading that low productivity will lead to lower inflation. How on earth does that work out? well, having no doctors on a ward = low productivity giving them a 35% pay rise means increased inflation if they work Please explain that as giving them a pay rise does not increase anything we buy. 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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