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Showing posts from June, 2023

Central Bankers to Workers: "You're poorer now. Deal with it."

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                                             Source: Shutterstock                                                                                                                                                     Hu Pill, chief economist at the Bank of England recently told Britons that they need to accept that they're worse off and stop trying to maintain their real spending power by asking for wage hikes. BOE governor Andrew Bailey seconded this message adding that salary increases will feed through to higher costs due to "second round effects" and workers' demands for higher wages are frustrating his efforts to combat rising costs. Brits are poorer due to price inflation's impact on food, energy, housing and nearly all other goods and services. At bottom, the bankers' view is that workers, who are the biggest victims of price inflation, should bear its cost and quit carping. Needless to say, that has not gone over well.