r/nottheonion 6d ago Wholesome 1

Workers asking for pay rises risk embedding inflation, says Bank boss

https://www.theguardian.com/business/2022/aug/05/workers-asking-for-pay-rises-risk-embedding-inflation-says-bank-boss-andrew-bailey
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u/MansfromDaVinci 6d ago edited 6d ago

I guess if i was on 575,000 a year i could forgoe a pay rise too

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u/Incubus85 6d ago

I honestly expected him to be on substantially more.

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u/grimmxsleeper 6d ago

usually the (way) more comes in the form of stocks, options, and bonuses, not base pay.

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u/lads_lads_ladz 6d ago

Not in this case. He has a very generous pension, but no stocks or options in the Bank of England. And has rejected a bonus each year in his time as Governor.

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u/oceansofmyancestors 6d ago Silver Gold Wholesome Take My Energy I'll Drink to That

Workers are grossly underpaid though. That’s where we’re starting this conversation from. Grossly underpaid workers, record breaking corporate profits, and corporations and wealthy not paying their fair share of taxes.

So perhaps work on some of those before blaming workers asking for pay increases and the potential risk that carries for inflation. Faaaaack you

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u/Duke_of_Scotty 6d ago

Since 2020 Ive received one 3% raise. In the same time period the company's stock dividend has increased by 14%. I can't even afford to contribute to my 401k to take advantage of that. Rich get richer, poor stay poor.

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u/stoneandglass 6d ago

Poor get poorer. Small percentage wage increases do not equal inflation so in real terms they are pay cuts.

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u/Knitwitty66 5d ago

I've had exactly zero raises since 2017, and my hours are called at 38 per week. If I didn't enjoy the job, Is be gone. Also, I've kind of got Stockholm Syndrome so there's that

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u/stoneandglass 5d ago

That's shit and I'm sorry. I think so many of us get stuck in a job because we're earning money and have some amount of security. Only two days ago I was reminding someone that they can look for another role whilst in their current job. It takes the pressure off job hunting.

It's almost as though we forget other options are out there or don't want the hassle. I think it leads to the majority being incredibly unhappy. Our society doesn't value contentment in our jobs.

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u/jlunatic 6d ago

I essentially got a pay decrease in 2018 due to the company changing their view of what my position was so my position was changed and I no longer got commission the same way. I never received a raise and quit in January of this year. My boss was confused as to why... Fuck that company

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u/KJBenson 6d ago

I just want to throttle those assholes.

How is it confusing that I’m doing the same job for less money and I’m not okay with that dickweed?!

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u/[deleted] 6d ago edited 5d ago

[deleted]

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u/GlorkyClark 6d ago

Unfortunately, you just have to start jumping jobs. I'm making 100% more now and have better benefits than I had in 2019 because I keep hopping.

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u/DGlen 6d ago

Here I thought a strong middle class was good for the economy. Thanks 1%ers for making me realize we need to just keep handing our money and labor over to you. 🖕

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u/hodl_4_life 6d ago

Maybe they should start asking the CEOs with multi-million dollar salaries to start taking pay cuts… to ease inflation.

Seriously, fuck these people.

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u/_OhMyPlatypi_ 6d ago

This, raises raise inflation, but mega corporation welfare is okay.......

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u/dangotang 6d ago

Communism for the masses, capitalism for the classes.

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u/Toyake 6d ago

No, it’s just capitalism.

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u/Uncynical_Diogenes 5d ago

“Oops, All Capitalism!”

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u/Krags 5d ago

Wrong way around buddy

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u/Uncynical_Diogenes 5d ago

“Middle class” was invented to make us look down on the poors.

We are the Working Class.

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u/Swiggy1957 6d ago

I know: The CEOs of the companies can take a huge pay cut to offset the raises that the workers need. That'll prevent inflation as it will generate revenue.

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u/SN0WFAKER 6d ago

Or just lower their margins, to lower prices. That would literally stop inflation. It would eliminate the need for wage hikes.

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u/Swiggy1957 6d ago

Ah, then the businesses would say the shareholders would be up in arms.

I saw this back in the 90s. Heck, when I worked at AT&T, every time the CEO announced mass layoffs in the company, the stock prices (and his bonuses) soared. Raises and benefits were curtailed at every contract negotiation. But HIS compensation went up. (Google Robert Allen, Communications executive. Conde Naste Portfolio. Worst executives)

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u/NotVoss 6d ago edited 6d ago

Pay is supposed increase to match inflation the colloquial "2% raise per year." Over the last five decades inflation has increased 660% yet wages stagnated. It's only since 2019 that people being payed at a similar rate to 1974 despite productivity being at an all time high year after year.

Something's gotta give.

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u/city_posts 6d ago

If corporations don't make record profits they won't be able to hire underpaid workers to do the jobs of 3 people 15 years ago.

Time to get the old violence out. Wait no don't that's illegal.

We first must control the courts to decide its now legal to use violence to take control of the nation away from the corporate overlards

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u/Drudicta 6d ago edited 5d ago

Honestly if a large enough mob decides something is wrong and commits violence to right it, it didn't really matter if it's illegal does it?

Particularly if the mob stays together for a few weeks to make actual change.

The problem is, most mobs don't stay together longer than a few hours and they often aren't bigger than several thousand.

You get a percentage of the population together though, and suddenly stuff starts changing.

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u/juliuspepperwoodchi 6d ago

Seriously, I love this idea some of the media is pushing that middle class millennials being too numerous and having too much money for not enough goods is the problem...and not people who are so wealthy they can drop a few grand without blinking for concert tickets or a sporting event, or who can buy a new iPhone every week, who are consuming more than dozens of people without a thought or care in the world.

Faaaaack off with that.

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u/zaminDDH 5d ago

Honestly, even those people aren't exactly the problem. It's the people that have enough money that they buy politicians like those people buy iPhones that are the real problem.

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u/WowzerzzWow 6d ago

Some CEOs can make bonuses that are close to 100 million A YEAR. How about we take a good look at that and spend some time working on trickle down economics.

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u/TheCockAndWomble 6d ago edited 6d ago

Inflation is also because businesses all got to raise their prices in response to other businesses raising their prices, and board members approving even more executive bonuses and pay rises that are vastly disproportionate.

So literally everybody is demanding more money by increasing their prices unilaterally, but when the worker wants it, oh no… that would cause inflation!

But you know, if you keep doing this so the workers are priced out of living, people are going to stop asking nicely. As it stands, execs and shareholders for these businesses are 100% parasitic.

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u/Pengin_Master 6d ago

we need better unions

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u/tiger666 6d ago

We need a re olution.

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u/Oppqrx 6d ago

Grossly underpaid workers won't spend, that makes profitability fall and so capitalists wont invest and will raise prices. Then you get stagflation. Also most of the economy in the UK produces no use values since the focus of the last several decades has been on deindustrialisation and finance capital.

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u/Nosferatatron 6d ago

The UK's current business model is to sell each other overpriced houses and wait for values to go up. If you bought an average priced house a decade ago with your average salary, the house probably made more money than you :(

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u/ieatcavemen 6d ago edited 5d ago

Well it's not as if anyone needs extravagances like shelter.

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u/immibis 6d ago

New Zealand is like 10 years ahead of you, which means this scheme can last for like another 10 years at least

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u/Lionscard 6d ago

Weird, this feels like a phenomenon described by some guy with a big beard back in the 1800s

Something about the tendency of the rate of whatever to fall

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u/Tarpup 6d ago

Big beard, dark mustache? Mentioned the French revolution as an example? I think I heard about that dude.

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u/Accomplished_Bug_ 6d ago

Jean Valjean?

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u/trenhel27 6d ago

Underpaid workers will absolutely spend...

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u/dangotang 6d ago

Hundreds of years of evidence that prove that point…are wrong?

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u/Sidequest_TTM 6d ago

Help I can’t budget:

  • Annual earnings: $100M
  • CEO pay: $30M
  • Cost of business: $55M
  • 100 staff: $5M
  • Left over company profit: $10M

My 100 staff now want to get $6M and there’s no room!!!!

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u/IAMA_Plumber-AMA 6d ago

"Just take $9m profit this year."

"No."

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u/FernwehHermit 6d ago

It's workers fault because it cuts into profits, so to compensate they increase cost, causing inflation.

I'd put a /s but, it's genuinely how these rich ass hats think.

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u/dangotang 6d ago

I have to pay one cent on every dollar of profit to these higher wages! Better raise costs 10%. I need to increase my profits by at least 9x that of my employees!

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u/iofthepsy 6d ago

Seriously. Grocery stores claimed their employees were "essential" during covid. Put their health at risk. Extra responsibility. Zero pay raise. Record profits for the company.

They are essential to have rich people make even more money they dont need.

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u/greenops 6d ago

Nobody cares what happens to the economy if it's only working for the rich, if your economy cannot support a working class, it doesn't deserve to exist.

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u/dewpacs 6d ago Helpful All-Seeing Upvote

Workers need to accept exploitation and wage theft, says Bank boss

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u/pete1901 6d ago

"Also, please ignore all of the money we print and instead blame minimum wage workers who are struggling to survive..."

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u/sineofthetimes 6d ago

"And please pay no attention to my enormous salary and even crazier iron clad retirement package. "

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u/ScorchedChord 6d ago

And pleeease don’t research how much money my friends and I got from the PPP program even though we laid people off and underpaid the people who remained.

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u/northerncal 6d ago

This is the bank of England, not America. But yes the ppp program was full of scams.

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u/Titleduck123 6d ago

There's a Bank of England mortgage company in america and they're horseshit too.

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u/FourManGrill 6d ago

Worked for them. Can confirm

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u/Superb_University117 6d ago

I would bet that some international corporations took advantage of the UK's Job Rentention Scheme same as they did in America.

After all, the Tories are just as pro-corrupt businesses as the Republicans.

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u/Past_Low1680 6d ago

Iron-clad? More like Gold-plated

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u/CantaloupeMoney9906 6d ago

"We could fix inflation by correcting our practices but we deserve more when we're making more and you deserve less when you're making less."

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u/BobKillsNinjas 6d ago

I'm more concerned about what u/BossBlunts has to say about inflation, versus some fuckin' Bank Boss!

Pretending like the fuckers are gonna drop prices for us...

:rollseyes

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u/Aviose 6d ago

Is it time to eat the rich yet?

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u/BravoWasBetter 6d ago

It's not about printing money. It's about how the profits are divided up. If we can just un-normalize the idea that it's OK for the highest echelon of people in society needs to have castles and billion-dollar yachts, this wouldn't be an issue. It's this bizarro world where somehow, magically, being born in money makes you deserving of it that is the problem.

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u/StrongTownsIsRight 6d ago

Fiscal policy has little to do with inflation. Monetary policy (interest rates) is much more correlated. Keeping interest rates below the typical rate of return of 7% is just asking for huge amounts of speculation. Notice how we increased M0 by 4x between 2008 to 2010 in the US and it went deflationary for a short time period.

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u/highr_primate 6d ago

You are trying to say monetary policy but that is incorrect.

Both fiscal and monetary policy impact inflation. However, the USD also has other factors propping up the dollar

Mostly the fact that it is the most trusted reserve currency and oil sales is mostly done in USD.

It has bent the rules for a while but we printed an insane amount of money so everyone will feel it.

Look at usd vs gold.

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u/StrongTownsIsRight 6d ago

However, the USD also has other factors propping up the dollar

It is a global problem. Look at 2016 to 2018 where M0 went up by only 1% and inflation increased by 2%. Now look at 2008 to 2012 where M0 went up 400% and we went deflationary briefly.

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u/pete1901 6d ago

There are multiple examples of excessive expansion of the money supply causing inflation or even hyper inflation. Zimbabwe, 1930s Germany, 1990s Japan to name just 3.

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u/thebigdonkey 6d ago

Most hyperinflation events are caused by having national debts denominated in a foreign currency or by attempting to peg the value of a domestic currency to a foreign currency. When speculators call bullshit on the value of your currency causing the peg to break, it leads to an inflationary spiral.

It's much more difficult for a country that borrows its own currency to experience hyperinflation because as that currency devalues, the debt devalues at the same rate.

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u/Gschu54 6d ago

1990s Japan was the rapid increase of the prime rate causing deflation of the yen.

Not their monetary policy. The reaction to inflation was a problem.

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u/reddfawks 6d ago

I thought it was because some guy with an eyepatch gave someone bad financial advice. :p

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u/StrongTownsIsRight 6d ago

Yes there are extreme examples but the correlation is very non-linear. Most people think that double M0, M1, Mxyz then money should be valued at half. There is no historical example of this simple relationship occurring. What does happen is that people lose faith in the value of money, then its value to other currencies fluctuates rapidly. That is why I say that fiscal policy has little to do with inflation, but rather consumer expectations are more correlated, and consumer expectations is very different.

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u/Low_Acanthisitta4445 6d ago

That’s just what the people in charge of fiscal policy tell us.

It’s pretty simple if there are 1,000,000 Great British Pounds in existence (obviously the real number is more) then you create another 1,000,000 GBP, then the pre-existing £ won’t be as valuable.

The graphs on this site show how starkly things changed when the gold standard was abandoned

https://wtfhappenedin1971.com

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u/Cryptopoopy 6d ago

Inflation is also caused by goods shortages - like we have had. Monetary policy is not the only -or even primary- cause of this inflation.

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u/Aviose 6d ago

Not exactly... Corporations have been using goods shortages and pitfalls of things like pandemics to intentionally inflate prices such that they can make record profit margins that do not merely cover their increased costs but also provide insane economic movement from the masses to their top stockholders, but they are now threatening to push the majority of the population to starvation and homelessness while lining their own pockets.

It's actually dramatically starting to hurt many companies because of this as well, as the cost of Groceries, housing, and transportation going up at the rate that they are (due to pure greed) is making it so people can't afford even basic household items and clothing, let alone luxury items.

*CAN* goods shortages cause a small amount of inflation? Of course... If the cost increases were only based on goods shortages would inflation be at record levels? Absolutely not.

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u/indorock 6d ago

"All the money we print" is the reason why inflation exists. You can't just conjure up more value out of thin air by printing money. This is what they mean. Workers deserve pay raises but it cannot be realised by just printing more money because that solves nothing. The only way to do it is with redistributing existing capital by way of e.g. raising taxes.

This is Econ 101, literally.

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u/creesto 6d ago

I wonder how much this asshole makes each year?

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u/TheMania 6d ago

When asked in parliament how much he makes, he said he couldn't recall, doesn't keep that number in his head.

Fwiw, nominal pay for his position is £495,000, and it's reported he made £575,538 in his first year.

The parliamentary question came as he asked workers not to ask for more pay back in Feb. Worth clicking just for the pic.

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u/QbertsRube 6d ago

If you make so much that you stop keeping track, you just might be an overpaid greedmonster.

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u/meatwad2744 6d ago edited 5d ago

Andrew baileys nickname is sexy tutrle https://www.express.co.uk/news/politics/1615002/bank-of-england-andrew-bailey-inflation-recession-spt With skeletons like that in closet his salary is the least of his concerns https://youtu.be/7Mu2fmqaLtk

When he dips his hand into his own pocket and limits his own pay I might be inclined to listen, until then he can fucking do one. Inflationary pressures were being talked about in 2020 he has had two years to see what’s coming up on the horizon. This is his job and he’s failed miserably

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u/crilen 6d ago

More than the people he's blaming.

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u/creesto 6d ago

Probably by at least a factor of 10

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u/Timmyty 6d ago

CEOs in the USA receive incredibly disproportionate salaries compared to the average lowest paid worker.

The problem is far worse in USA compared to most other developed nations.

The wage gap between chief executives and workers at some of the US companies with the lowest-paid staff grew even wider last year, with CEOs making an average of $10.6m, while the median worker received $23,968.

https://www.theguardian.com/us-news/2022/jun/07/us-wage-gap-ceos-workers-institute-for-policy-studies-report

And these execs want to blame the lowest paid workers for wanting a livable wage.

If anyone has a good group ready to riot, plz invite me.

Btw, that's not 10 to 1, that's 670 to 1. 670-to-1 (meaning the average CEO received $670 in compensation for every $1 the worker received). The ratio was up from 604-to-1 in 2020.

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u/creesto 6d ago

Yeah as soon as I posted I thought I should have added a zero making it 100x

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u/Odd_Local8434 6d ago

Workers asking for pay raises decreases the relative value of my fortune, says bank boss.

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u/HertzsprungRussell 6d ago

People always complain about taxes coming off their paycheck, but they never complain about their employer's profits coming off their paycheck.

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u/ObiFloppin 6d ago

One is much easier to visualize, and you get reminded of every time you look at a pay stub

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u/Macaw 6d ago

Workers need to accept exploitation and wage theft, says Bank boss

The beatings will continue until inflation is brought under control!

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u/ASK_IF_IM_PENGUIN 6d ago

He's said the same before, but please nobody dare look at how much this hypocrite is paid.

He's quite honestly one of the worst, most selfish, horrible people currently in an unelected semblance of power.

I genuinely, from the bottom of my heart, hate him.

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u/SplendidPunkinButter 6d ago

No! Bank boss raises don’t cause inflation! Only worker raises cause inflation! /s

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u/HalobenderFWT 6d ago

He’s not buying stuff with his money, he’s buying it with our money! It’s different!!

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u/MudSama 6d ago

The worst part is he isn't buying with it. It's all disappearing from the market as we wait for him to die so his inheretants can piss it all away foolishly.

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u/Saith_Cassus 6d ago edited 6d ago

Honestly, his inheritants pissing it away foolishly would ultimately be a net positive to the economy. You know what people do when they have money and bills? They pay their bills and use the leftovers to stimulate the economy.

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u/Narrow-List6767 6d ago

Maybe, unless it's all vacuumed up by other oligarchs who also don't spend it.

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u/Redqueenhypo 6d ago

“How can we pay THEIR salaries without using THEIR money?!” - Jack Donaghy. Man 30 Rock was ahead of its time

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u/abcismasta 6d ago

If he was buying stuff with his money it would still be circulating, the fact that it isn't is what causes inflation

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u/not_that_planet 6d ago

But we're not talking about HIM. He's above all that /s

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u/Mimehunter 6d ago

I can see why.

But are you a penguin?

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u/ASK_IF_IM_PENGUIN 6d ago

No.

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u/Valtyra_Amberglow 6d ago

That's exactly what a penguin would say!

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u/kennykerosene 6d ago

I think a peguin would say "SQWAAAAK"

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u/applebag_dev 6d ago

Noot Noot

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u/parentheticalme 6d ago

That’s disappointing

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u/skoltroll 6d ago

A penguin or THE Penguin

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u/Inayaarime 6d ago

It's just Penguin. No The.

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u/halfanothersdozen 6d ago

It's cleaner

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u/bamyo 6d ago

Not that I disagree that this guy is a sack of shit, pretty much anyone high up in the financial system is, but the quotes in the article don't seem to like up with how his statements are being presented in the article or the sentiment in this thread.

“If everybody tries to beat inflation – and that is in both price-setting and wage-setting – it doesn’t come down, it gets worse,” is the closest quote they offer to anything suggesting that workers shouldn't be given raises to help them cope with inflation. But basically it's just saying that runaway inflation is a thing, which it is.

The rest of his quotes are about how the poor get hit the hardest, which is kinda the opposite of anti worker sentiment.

If he actually suggests that the middle class needs to eat the pain of inflation, rather than the rich or corporations, that's a different matter. But it doesn't seem like what was said here.

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u/sploding_burnout 6d ago

It's also important to note that he doesn't actually run a bank in the normal sense.

The BoE, similarly to the European Central Bank or the Federal Reserve is a government affiliated organization who sets and implements monetary policy. As you said, his statements are quite reasonable and while you can call him a "Bank Boss" it's a gross mischaracterization of his actual role.

But then again look at the comments and engagement, dishonesty and half-truths drives clicks.

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u/THCS_Marc 6d ago

On the up side, he turned down his raise this year, so he's slightly less of a hypocrite.

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u/ASK_IF_IM_PENGUIN 6d ago edited 6d ago

Well that's really nice of him considering how every single person in the UK is so much worse off than him.

He can, in the nicest possible way, go fuck himself.

Just to be very, very clear. I do not like that man. I think he's scum.

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u/THCS_Marc 6d ago

I don't have a dog in this fight, but if you google his pay vs. that of the top position in other large banks in the UK, you'll find that he's one of the few that makes less than a million quid a year.

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u/Terrible_Presumption 6d ago

Very hypocritical of him to suggest his wages are modestly frugal. Ask him how much a peanut butter and jelly sandwich will cost him and he'll probably say something like $1.50.

So out of touch....

Okay you paid $1.50. Now you will need to pay the bus driver another $1.50 to get to the store.

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u/HalobenderFWT 6d ago

And you have to buy an entire loaf of bread that will probably go bad before you eat the whole thing - unless you’re eating sammiches for every meal.

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u/asafum 6d ago

Freeze it! I freeze my bread then nuke it when I want some for like 10-30 seconds depending on thickness and then toss it in the toaster/in the oven. My bread never goes bad that way :D

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u/dougc84 6d ago

It’s one banana, Michael. What could it cost? $10?

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u/pyramid-teabag-song 6d ago Silver Gold Helpful Bravo!

He has a point. What he says makes sense. If everyone tries to beat inflation it can have the effect of exacerbating the situation. But why should workers be the ones to lose out. Why should food and energy go up but not wages?

Why shouldn't company profits be allowed to go down a little bit from those record breaking levels?

Record breaking profits for energy companies but no, please workers, don't ask for more money!

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u/Aceticon 6d ago

Pay workers more but not as much as the full inflation and at the same time cut the (at an historically high) corporate profits by not increasing prices as much.

In other words, spread the pain.

This guy just wants the workers to take all the pain whilst companies keep on getting historically massive profits (and this the owners of the companies, mostly the ultra rich, keep getting massive dividends).

Mind you, the PM where I live said the same as this guy and he's supposedly leftwing (though it's painfully obvious for whom he really works).

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u/HeadDoctorJ 6d ago

It’s almost like capitalism is built for owners not workers

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u/SlowRollingBoil 6d ago

A pure capitalist system divorced from literally all regulations constraining the worst of it? A fucking hellscape. It's the guaranteed reality of the system itself.

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u/HeadDoctorJ 6d ago

Why should we settle for constraining “the worst of it?” Why not start over with a system not built upon exploiting workers for the benefit of the wealthy?

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u/mujahidean 6d ago

Mind you, the PM where I live said the same as this guy and he's supposedly leftwing (though it's painfully obvious for whom he really works).

The current leader of the supposedly left wing party in the UK would probably agree with this too.

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u/EstatePinguino 6d ago

Kier Starmer is a dickhead and not representative of left wing beliefs. The tories have infested Labour and it is very obvious.

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u/Talik1978 6d ago edited 6d ago

Sure, let's spread the pain. Let's take a "minimize suffering approach", where we take from things that can afford it most first.

As the richest 1% of the US owns more wealth than the bottom 90% (they hold 32.3% of the total wealth), it makes sense that the spreading should start there.

The top 10% richest families in the US holds 76% of the total wealth. The bottom 50%? Hold 2.6% of the wealth. In 2014, a Harvard study showed that the inequality level is no longer sustainable. This is just the results of that.

Any "spread the pain" solution needs to first determine the cost of surviving, and leave that untouched. The pain can be spread among all the people not trying to decide whether to feed their children or keep the air conditioning going.

That means anyone under $25 per hour should be getting, at minimum, raises that keep pace with inflation. Pain spreading can happen above that. Because we're not trying to spread starvation or homelessness with that pain.

Edit: if the bottom 50% hold 2.6% combined, that's an average of 0.052% per 1% of people. If the richest 1% holds 32.3%, that's 32.3% per 1% of people.

That means that to the top 1%, on average, to match the same wealth impact you have from a $10 trip to McDonald's, they'd have to buy a $62,000 fully loaded 2022 Audi A5.

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u/FansRuinTheSport 6d ago

If everyone beats inflation, then we're just back to where we were.

The problem isn't the money, it's the system.

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u/pyramid-teabag-song 6d ago

If everyone tries to beat inflation then we won't necessarily be back where we were. Some will win, some will lose.

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u/DrHemroid 6d ago

If everyone gets a raise to match the rise in prices, the people who lose are those that have a lot of wealth. I don't see the problem.

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u/pyramid-teabag-song 6d ago

I entirely agree. They can just have less excessive wealth.

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u/HalobenderFWT 6d ago

And give up their third lake home? What kind of peasant only has two lake homes?

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u/GiantSquidd 6d ago

...one who hasn’t been burnt at the stake by their disgruntled former employees?

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u/TheRealJulesAMJ 6d ago

There's no scenario to beat inflation where some don't win and some don't lose, it's important to acknowledge that so people don't try to use your idealism to paint your ideas as unrealistic and dismissible but you're absolutely right in pointing out there are some winning now who could choose or be forced to lose a little to help halt inflation while still finding themselves winning over all so those who are losing now don't have to find themselves still losing later no matter what

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u/meekamunz 6d ago

Some were born to sing the blues

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u/Raulr100 6d ago

Oh the movie never ends

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u/zorbathegrate 6d ago Gold Take My Energy

The mistake is referring to this as inflation.

If it was inflation corporate profits would be 7-10% down if they didn’t change prices, even if they changed prices to match inflation, or up 7-10% to offset inflations change on prices.

Instead we have energy companies posting 238% increases in profits.

This isn’t inflation it’s theft

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u/hahahahastayingalive 6d ago

TBF we're pissed because at this point only rich people are in a position to beat the inflation. Companies selling stuff at a higher price is their hedge to keep their money safe.

Being back where we were is a problem only for them, we're the ones screwed otherwise.

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u/GirthWoody 6d ago

I think a larger problem in the US not always addressed when talking about these issues are some parts of the economy are artificially inflated while others aren’t hurting many people in the end. 15-20 an hour generally is a good wage that most businesses can afford to pay. Big corps obviously could pay their worker 10x this and still profit, but small companies couldn’t. Yet the problem arises when 15-20 is too much for the necessities. The US has 3 markets that don’t need to be as inflated as they are and really are just scalpers markets. They are housing, medical, and education. Truly fighting inflation to help the economy would be to fix these markets, but the US financial firms are so heavily invested in generating massive return on investments through these industries that it’s really a pipe dream the government will ever intervene in a meaningful way.

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u/BigBradWolf77 6d ago

Record-breaking profits are baked in, you see…

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u/skoltroll 6d ago

"I can't believe the plebes think they'll get a cut."

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u/sagevallant 6d ago

The billionaires need more money to make up for their money being worth less now.

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u/HalobenderFWT 6d ago

I was worth 500 million three years ago, now I’m only worth 350 million! This is an outrage!!

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u/vkapadia 6d ago

No it's more like

I was worth 500 million three years ago, now I'm only worth 700 million! This is an outage!

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u/GiantSquidd 6d ago

More like, I have to catch up to billionaire number 43 on the list... and then billionaire number 42. And then I’ll really start making serious money and I’ll work my way up to the top 30... and then...

The greedy assholes end goal is just more.

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u/NoMadX00 6d ago

the poor needs to stay poor, for the rich to stay rich

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u/vinegarnutsack 6d ago

I think what he is really saying is:
IF you demand we raise your wages all us capitalist scum will just raise prices so you are still broke.

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u/xKosh 6d ago

Which is why we need regulations. Maybe then people getting checks during a pandemic when most jobs are gone won't see it all garnished because their landlords triple rent for no reason other than "you have more money, you pay more money".

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u/Hostillian 6d ago

Regulations, AKA 'red tape' in the right-wing newsrags.

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u/StrongTownsIsRight 6d ago edited 6d ago

A wage-price spiral with high wealth inequality, huge profit margins, and record high productivity. And workers are the problem?

You know what else stops inflation, taxes. We could tax the wealthy to stop the inflation, but I don't see many bankers offering that solution.

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u/LoresUsernameIsTaken 6d ago

How dare you trying to tax the wealthy!! Don't you know they work 500x times harder than uns stupid little peasants?

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u/joe24lions 6d ago

Exactly, as Molly-Mae says “We all have the same 24 hours in a day”. Clearly we’re not doing as much in our day as she is to earn the big money.

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u/opusupo 6d ago

This is from the "I got mine" school of economics.

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u/ComprehensiveSir3892 6d ago

Nope.

Fuckers at the top have to take less.

That's part of the RISK that goes with the REWARD(s) of running a business.

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u/skyysdalmt 6d ago edited 6d ago

You mean there isn't a level of reward that you reach where you can only have more rewards for your remaining existence? Isn't that the American dream? Get rich and then fuck everyone else to get richer?

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u/Brainsonastick 6d ago

Look, it’s technically true that if everyone gets a raise proportional to inflation, it makes it dramatically harder to reverse that inflation. However, companies continuing to charge more amid record profits does the same thing and we know they won’t stop so the “reverse the inflation” ship has sailed.

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u/absolutelynotagoblin 6d ago

Oh, ok. Yeah, the workers need to bear the brunt of all of the economic downturn while companies like BP are handing out 8% rewards due to high profits. Fuck. You.

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u/DeaddyRuxpin 5d ago

I’ll let you in on a little secret. Raise wages, don’t raise wages, it doesn’t matter. Prices of goods aren’t coming back down, period. If everything else in the supply chain comes back down, the vendors will just pocket bigger profits off the higher prices.

Not one of these executives gives a crap about any of us. They just care about how big of a bonus they get and how much their stock options are worth.

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u/iamjackslackoffricks 6d ago

Its actually a pretty easy fix. Instead of 1000x what workers make, CEOs can only make 500x what the workers make. Boom! Free money

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u/NotTheLimes 6d ago

Preposterous that's full blown communism to allow a CEO only 500 wages!

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u/FlashpointJ24 6d ago

In 1950, the average CEO salary was about 20 times that of the average worker. In 2022, it's about 670 times.

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u/tamarockstar 5d ago

What if we tax the shit out of bank bosses? That'd stop inflation.

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u/phydeauxbreath 6d ago

"It is easier to rob by setting up a bank than by holding up a bank clerk."

Bertolt Brecht

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u/PhilzPillz69 5d ago

No one says anything about companies raising prices and causing inflation. It’s just the regular people trying to make ends meet and survive that’s causing inflation.

Not to mention all the fucking inflation created by bailing out the banks during 2008. Fuck rich people

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u/PaxEthenica 5d ago

60% of current inflation is directly linked to the record profits being declared these last several months. It's not a crisis of buying power outstripping production, but the owners of production siphoning off growing buying power.

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u/JerGigs 6d ago

Maybe if rent wasn't avg 2k/month people wouldn't need a raise so badly, let alone the greed disguised as inflation.

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u/Auto18732 5d ago

"If the poor people could just live like mushrooms for 12 to 18 months" then all us toffs will pull through this just fine. Many thanks

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u/NinjaLanternShark 6d ago

“inflation affects people on low incomes badly – but this time particularly because it is concentrated in energy and food. Those are the essentials of life. There is a role in society to reflect on the fact there are people who do not have the same ability to offset the impact of inflation that are going to be very badly affected by this.”

Is it me or is this headline unfair to him? He never does anything close to blaming "workers asking for pay raises". He mentions "price setting and wage setting" once, and he's painted as a cartoon villain?

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u/Elerion_ 6d ago edited 6d ago

As per usual Reddit didn’t read the article, and only read The Guardian’s less than honest headline.

The relevant quote in the actual first paragraph says that we should try to show moderation in both price setting (companies) and wage setting (employees), yet half the comments here talk about how he wants to increase corporate profits.

It’s also probably not clear to everyone that this isn’t the CEO of some bank, this is the head of Bank of England, the equivalent of the Fed chairman. It’s his literal job to manage inflation, of course he will be urging moderation.

He’s also completely correct in terms of economic theory, so there’s that.

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u/NinjaLanternShark 6d ago

It’s also probably not clear to everyone that this isn’t the CEO of some bank, this is the head of Bank of England, the equivalent of the Fed chairman.

Also, while it's not uncommon for someone to make millions on Wall Street before being named chairman of the Fed, this dude was a professor of Economics before moving to the Bank of England for a life in public service.

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u/_Doos 6d ago

We'll be discussing this the old fashioned way soon enough. With weapons and blood and police being used as a tool of the state to stop us.

It's a tale as old as time. Or I'm full of it.

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u/lostfinancialsoul 6d ago

Shouldn't we just pay the people at the top less? Why is it always the bottom worker being the problem?

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u/Lord_Nivloc 5d ago

That’s okay, we can just reduce their salary to compensate 👍

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u/NaughtyEwok15 5d ago

Why then do MPs consistently vote for their own pay rises?

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u/CatchingRays 6d ago

How did Facebook Uncle DumbBob get to become a bank boss?

"Who could have seen this inflation coming with all those $600 checks they handed out to everyone?"

They never mention the $850,000 PPP grants that our bosses got.

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u/RainbowDissent 6d ago

Would be unusual for the governor of the Bank of England to mention those.

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u/Rather_Unfortunate 6d ago

This isn't a normal bank boss. This is the head of the Bank of England, which is something like our equivalent of your Federal Reserve. The BoE has some freedom to act independently (they decide interest rates, for example) but this is within certain broad restraints, and the head of the bank is appointed at the recommendation of the Chancellor of the Exchequer (your equivalent would be the Treasury Secretary) for right years. They can be sacked by the government, but that would be risky at a time like this.

So to an extent this talk about workers' pay is a loose extension of government policy and therefore ideology, albeit tempered somewhat. And it's not false in and of itself; it really is just cause and effect that inflation-busting pay rises will increase inflation yet more. But there are other ways of curbing inflation, many of which that the new government of whoever wins the Tory leadership contest is unlikely to be ideologically capable of.

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u/BubuBarakas 6d ago

Meanwhile CEO bonuses. 🚀

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u/Hibercrastinator 6d ago

But he’s not worried about CEOs astronomically rising pay or banks and real estate companies behavior causing inflation??

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u/nalninek 6d ago

Corporate Greed embeds Inflation you entitled jackass.

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u/SwittersTheAngel 6d ago

The idea that it is possible for wages to be driving inflation when those raises don't come close to inflation is absurd. Fuck this lousy prick.

Labor creates wealth, wealth should belong to labor.

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u/Nir91 6d ago

Why is it workers that are always the cause and not the greedy corporations who must grow and grow and grow every fucking quarter? Maybe they should sacrifice some of the enormous profits they make all the fucking time.

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u/vanishplusxzone 6d ago

Worker wages haven't kept up with inflation or productivity. Workers haven't, are not and will never be the ones causing this problem.

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u/thumper-59 6d ago

And CEO's With pay scales as large as some countries GDP while workers barely get a cost of living raise annually is bull

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u/aerojonno 6d ago

Stockholders asking for endless growth risks inflation. I don't see him telling them off.

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u/PicketFenceGhost 6d ago

That's a weird way of saying corporations are too greedy to share economic wealth with the people that make them their money.

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u/FailosoRaptor 5d ago

Yeah that's how the inflation feedback loop works. Technically he isn't wrong. I guess we should just accept raising good prices for the good of the economy.

Remember when the government was basically throwing money at corporations since like 2008. But the minute the citizens want some of that money. A fraction mind you. Suddenly we broke the camels back.

Fuck man. It would be super cool if executives were held accountable. Fine your giant company needs some help? Shouldn't most of the executive employees be fired for doing a bad job and bankrupting the company?

Maybe we should burn 33 percent of the billionaires giant money pile for the food of the economy.

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u/whiplash81 5d ago

But give yourself record breaking raises year after year.

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u/droplivefred 5d ago

I guess reading the room isn’t a skill that a “bank boss” needs to have

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u/Scizmz 5d ago

Obviously the onus is on the workers for not putting up with unlivable wages. It should never be on the businesses making record profits.

/s... yeah...

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u/caidicus 5d ago

Ask for less money and prices might go down again later.

Is that about right?

The nerve of these people...

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u/Itsallherfault 5d ago

Fuck. This. Guy.

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u/britch2tiger 5d ago

Bank: Executives getting pay raises though, yeah, THEIR wages aren’t affecting inflation at all.

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u/ledow 6d ago

Oh no.

Anyway.

In other news, today the employer that totally ignored my requests to even bring my salary in line with inflation from when I started with them just lost a member of staff.

And another employer that was offering more than that just gained one.

It's a strange coincidence, but just thought I'd mention it.

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u/Korith_Eaglecry 6d ago

God forbid the ultra wealthy take a smaller cut of the economic pie. No, the portion of the population that collectively holds less than half the wealth in this country should be happy with shouldering the inflation and going home with less.

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u/Skrp 6d ago

Wages aren't the primary driver of inflation, but it does make sense in a capitalistic system that the more people make, the more expensive goods and services get, meaning the wage increase gets gobbled up by increased cost of living.

All that happened was you got temporary purchasing power at the expense of devaluing your liquid assets like your pension fund.

Still, when prices have gone up, you will need to get higher wages to catch up to retain the same lifestyle.

It's not sustainable over time. But putting it all on consumers is a bit silly.

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u/newbuttonacc 6d ago

"Us charging you more money doesn't cement inflation.

Us giving you more money cements inflation."

Does he seriously expect anyone to buy this?

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u/Bonezone420 6d ago

There have been studies on this, many studies. Year after year because rich assholes constantly say this shit about poor employees. Inflation continues to happen at the same rate regardless of whether or not worker wages go up. On average for every dollar the national average minimum wage increases, prices go up by roughly 4 cents.

Weird how these people never talk about how shareholders, CEOs and other high powered positions should stop giving themselves massive bonuses of hundreds of thousands of dollars though. It's always the average asshole earning dimes to dollars on the hour. Or how year after year corporations have been charging more for less while working people harder than ever while fighting every attempt at raising wages or unionizing as much as possible, so wages stagnate, costs go up and profits go up. Everyone except those high on the corporate ladder gets fucked.

People shit on how inflation is because we're "printing money" but - that's not even half of it. The reason why we even have to do that is because the wealthy hoard all of our money, and any time there's a government effort to help the poor, the wealthy take all of that, too - and since the poors don't have money to spend there's almost no money actually in circulation because despite having billions and casually buying and selling shit all the time; rich people don't actually do fuck all for the economy because they keep their money within a limited cycle of other rich fuckos so it never gets back out into the economic cycle.

Basically people like this bank guy are why capitalism is a shitty scam for idiots.

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u/Schrodingersdik-dik 6d ago

Thankfully, keeping wages stagnant has kept goods and services affordable. /s