Reply To: Cost of living crisis
Arthur Bough’s letter can be found here:
https://weeklyworker.co.uk/worker/1443/letters/
He is right that, due to increasing productivity, prices should be falling rather than rising. So why are they continually rising?
The government itself (in fact the G7 and those who slogans with them) openly says that it aims for prices to rise at around 2 percent a year. The only way thus can be engineered is through inflating the money supply. What other way could there be?
What people are complaining about at the moment is not that prices are riding but that the rate at which they are has increased so much. But since much of this is due to supply factors there is not much that governments and central banks can do about it; just wait till this sorts itself out.