This leads to another fundamental problem: if wages are being raised, how do you stop the wage-price spiral, where the rising wages also lead to an inflationary spiral?
Not a real thing. Never happened irl, its a propaganda bit to scare workers. Prove it and you’ll get that fake ass nobel prize in economics. We demand raises because prices have already gone up, not the other way around. Rising wages are a response to raising prices. But they will of course lie and say that you asking for more will mean that they’ll HAVE to raise prices.
Irrelevant. The IMF study used data from the 1970s onward to the 2010s, at which point NAIRU (non-accelerating inflation rate of unemployment) has already been pushed heavily by the IMF and OECD after the collapse of the Bretton Woods to many developed and developing economies. Neoliberalism was already in full force, of course wage is catching up to the inflation because wage growth has already been pre-emptively crushed under the NAIRU framework!
Also funny that IMF is being quoted here because that’s literally IMF justifying how their neoliberal framework was the correct one.
Applying our definition to the data sample with aggregate nominal wages identifies 79 episodes. The first episode is identified in 1973, and the last in 2017 (Table 3.2). When using the narrower but more widely available wage concept covering only the manufacturing sector, 100 episodes are identified (Table A.4). Episodes with price and wage accelerations has become less prevalent since the 1970s (Figure 3.1). This pattern is clearest when using the narrower wage concept, given the longer time-coverage of this variable (Figure 3.1, panel B).
Yes, that was a problem that the Keynesians in the UK could not solve. The US inflation was more complex, because it was also driven in part by the spike in energy price during the oil crisis.
FYI I already commented to the poster that the IMF study that Roberts quoted used data from the 1970s-2010s, when the NAIRU framework was already firmly in place, so wage increase has already been heavily curbed. No surprises there at all.
The problem is that the capitalists would much rather run the rate of profits into the ground with AI than by paying workers. And we aren’t doing nearly enough to force their hands.
Not a real thing. Never happened irl, its a propaganda bit to scare workers. Prove it and you’ll get that fake ass nobel prize in economics. We demand raises because prices have already gone up, not the other way around. Rising wages are a response to raising prices. But they will of course lie and say that you asking for more will mean that they’ll HAVE to raise prices.
https://thenextrecession.wordpress.com/2022/11/20/the-wage-price-spiral-refuted/
Irrelevant. The IMF study used data from the 1970s onward to the 2010s, at which point NAIRU (non-accelerating inflation rate of unemployment) has already been pushed heavily by the IMF and OECD after the collapse of the Bretton Woods to many developed and developing economies. Neoliberalism was already in full force, of course wage is catching up to the inflation because wage growth has already been pre-emptively crushed under the NAIRU framework!
Also funny that IMF is being quoted here because that’s literally IMF justifying how their neoliberal framework was the correct one.
lmao, guess what happened in the 1970s?
Doesn’t Wray talk about a few instances of a spiral during his mmt talks? His take was that they do happen but only at absolute full employment.
Yes, that was a problem that the Keynesians in the UK could not solve. The US inflation was more complex, because it was also driven in part by the spike in energy price during the oil crisis.
FYI I already commented to the poster that the IMF study that Roberts quoted used data from the 1970s-2010s, when the NAIRU framework was already firmly in place, so wage increase has already been heavily curbed. No surprises there at all.
The problem is that the capitalists would much rather run the rate of profits into the ground with AI than by paying workers. And we aren’t doing nearly enough to force their hands.