inflation

there is an economical mechanism
in Belgium called indexation
that locks together the rise of the prices
with the wages
but what are the main reasons of such mechanism
if not to make the capital carry the
burden of inflation?
there is another inconvenient:
the industry
that applies on such mechanism has a high price
to pay by rising up the wages
weakening their strength on the free market




Poetry by urban duck The PoetBay support member heart!
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Written on 2022-08-14 at 20:38

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Lawrence Beck The PoetBay support member heart!
First of all, there is no such thing as a free market. Put that notion out of your mind. At this point, all markets are highly concentrated, controlled by just a few firms which do not compete with each other.

Second, indexing wages to the level of inflation is a brilliant idea. It keeps people from being impoverished by rising prices. Such indexation never will be adopted in the US. Instead, capitalists reap all of the benefits of raising prices without hesitation while warning that, if wages are increased, goods prices just will go up faster.

Never fear for the well-being of capital and those who own it. Capitalists rule the world.
2022-08-14