Inflation happens as unemployment is falling, when business owners respond to workers increasingly successful wage demands by raising product prices. In cases where inflation is in fact wage related, even though it's driven by capitalists profit protecting response to wage increases, what should the left position be? Should we demand that the government use some sort of other tool to manage it? Do some left policies under capitalist conditions indeed risk sparking inflation, or even hyper inflation? Yes, that's the million dollar question. And i'm frustrated with people like rugman, or with this analyst at the e p i for not facing this question squarely,. you know, because we really do need an answer.
Inflation is once again at the center of political debate. Dan interviews Tim Barker to put monetary policy in its historical and class war context.
Reading:
Preferred Shares by Tim Barker phenomenalworld.org/analysis/wage-share
email digradiopod@gmail.com for PDFs of the following two articles:
The Vietnam War and the Political Economy of Full Employment by Dean Baker, Robert Pollin and Elizabeth Zahrt
Class Conflict and the "Natural Rate of Unemployment" by Robert Pollin
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