Regular readers will know that I hate the term NAIRU – or Non-Accelerating-Inflation-Rate-of-Unemployment – which is a concoction invented by mainstream economists to maintain unemployment at elevated levels (to keep the working class in its place) and give cover to central banks to run monetary policies that redistribute income from poor to rich. If you search through my archives you will find many posts about this abomination. I am guessing with all the supply disruptions at present as a result of the illegal invasion of Iran, central bankers will start claiming interest rates will have to rise to curb the inflation. They will dress these claims up in some economic sophistry and the official speak will talk about NAIRUs and excessive demand pressures. Yet, in reality, there is no such justification. The rate rises will not get ships moving through the Strait of Hormuz more quickly, just as they did not get factories back to work during the early COVID period. Here is some analysis to support my point.
Economics
Paul Mason: Upward mobility has been shattered. And no one in power cares enough to fix it
Our economic system didn’t intend to suppress the social mobility of working-class kids, but it has. Now their prospects are so bleak that Labour’s promises to the postwar working class seem practically Bolshevik Read here […]
Media
Simon Wren-Lewis: Links between austerity and immigration, and the power of information
Simon Wren-Lewis may not be known for his brilliant prose, but his analytical talent, even concerning popular topics, is unimpeachable. This is well worth reading. Read here
Austerity
Nick Dearden: The EU is unhealthily biased toward austerity – that’s why it’s now in a budget standoff with Italy
In 2008, Europe’s leaders promised to discipline finance. Instead, it is Europe’s people that were disciplined Read here
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