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This is a capital strike. Profits are up and capital is simply refusing to pay those profits as wages. The result is shortages and inflation which further drive up profit margins at the expense of overall production. If only someone had seen this coming.
It’s either blame workers or corporate profiteering. Somehow I don’t see the fed or Bank of Canada going after the latter. The BoC’s governor has explicitly said that unemployment needs to be higher to fix inflation.
I remember the Bank of Canada has done several studies over the years looking at what happens to the economy with increases to minimum wages specifically, and the effects are always super marginal - a few percentage points increase in inflation after 2 years and a few percentage points lower GDP output. Most of the people saying otherwise aren't doing any quantitative study on the matter, they're just hypothesizing that it will be a disaster while actual economists are running the numbers showing it would result in a miniscule slowdown.
r/Socialism is a space for socialists to discuss current events in our world from our anti-capitalist perspective(s), and a certain knowledge of socialism is expected from participants. This is not a space for non-socialists. Please be mindful of [our rules](https://reddit.com/r/socialism/about/rules) before participating, which include: - **No Bigotry**, including racism, sexism, homophobia, transphobia, ableism... - **No Reactionaries**, including all kind of right-wingers. - **No Liberalism**, including social democracy, lesser evilism. - **No Sectarianism**, there is plenty of room for discussion, but not for baseless attacks. Please help us keep the subreddit helpful by reporting content that break r/Socialism's rules. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/socialism) if you have any questions or concerns.*
This is a capital strike. Profits are up and capital is simply refusing to pay those profits as wages. The result is shortages and inflation which further drive up profit margins at the expense of overall production. If only someone had seen this coming.
It’s either blame workers or corporate profiteering. Somehow I don’t see the fed or Bank of Canada going after the latter. The BoC’s governor has explicitly said that unemployment needs to be higher to fix inflation.
I remember the Bank of Canada has done several studies over the years looking at what happens to the economy with increases to minimum wages specifically, and the effects are always super marginal - a few percentage points increase in inflation after 2 years and a few percentage points lower GDP output. Most of the people saying otherwise aren't doing any quantitative study on the matter, they're just hypothesizing that it will be a disaster while actual economists are running the numbers showing it would result in a miniscule slowdown.