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Post by Pacifico on Mar 27, 2023 7:09:48 GMT
How do the Tories influence what the ECB does? 'the European Central Bank (ECB), responsible for keeping prices level, has increased interest rates, making it even harder for people to buy things, while letting corporate profits — the main driver of inflation — off the hook.'Like the US if you make it harder to biy things, you keep inflation down. Surely you know this if you want to discuss economics. Corporate income is not off the hook. Any loan they want/need to grow costs more. JEEZUS! This is elementary economics!! Are you just picking random phrases out of the air? I asked a perfectly simple question with regards to this idea of yours that the Tories have something to do with the policies of the ECB - and I get a response with something to do with inflation. Care to answer the question I asked?. |
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Post by oracle75 on Mar 27, 2023 9:59:20 GMT
Like the US if you make it harder to biy things, you keep inflation down. Surely you know this if you want to discuss economics. Corporate income is not off the hook. Any loan they want/need to grow costs more. JEEZUS! This is elementary economics!! Are you just picking random phrases out of the air? I asked a perfectly simple question with regards to this idea of yours that the Tories have something to do with the policies of the ECB - and I get a response with something to do with inflation. Care to answer the question I asked?. In the same way as the American rate of interest affects everyone else. It has to do with the fact that economics is a global issue and controls international investment decisions, national debt and nominal wealth and the value of their currency / ability pay off debt. As well as counter inflation. |
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Post by buccaneer on Mar 27, 2023 10:29:06 GMT
Sure, once you have demonstrate this is false like you've previously stated: To those who actually buy stuff this may not seem like a groundbreaking insight, and yet for the past nine months, the European Central Bank (ECB), responsible for keeping prices level, has increased interest rates, making it even harder for people to buy things, while letting corporate profits — the main driver of inflation — off the hook.
This puts further pressure on disposable income, which despite massive government support schemes — estimated at €800bn in 2022 alone — fell by 2.9 percent last year; 6.9 percent in Greece and 3.1 percent in Germany, where it fell for the third year in a row.
The question is, why? Why do we suppress wages while letting let profits rip? To put it in historical perspective: in the 1970s, nearly 70 percent of economic output went to employees, with just over 20 percent going to profits. Now, labour's share stands at 56 percent with a third going to profits.Otherwise, go back to school. Profits are not "letting rip" unless you are a mate of a Tory Politician. From your own quote, are you advocating that more profits should go back to employees....you would squeal the iniquities of socialism. Company profits are what Tories WANT. What they dont seem to be able to do is tie them into poductivity per capita. Or offerering better benefits to international investment that is better than somewhere else. This thread isn't about the Tories. Fundamentally, this about how the EU has no fiscal policy, so it therefore relies on wage restraint for competitiveness and this in turn is supposed to keep inflation in check. However, as the article suggests, it is corporation profits that are driving inflation in the EU and not wages. Products becoming more expensive yet wages stagnate. euobserver.com/green-economy/156781 |
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Post by oracle75 on Mar 27, 2023 11:24:45 GMT
The ECB controls interest rates, NOT wages.
That is why people are free to travel and search out higher wages.
The link asks:
"The question is, why? Why do we suppress wages while letting let profits rip? "
I sincerely thought you were talking about the UK, where the TORY government suppresses wages in the public sector, yet those very MP's charge tens of thousands for half a dozen board meetings, rake in huge profits.
Private businesses have to compete for the best staff. They would go bankrupt if they really did suppress wages
Employees would go somewhere else.
The whole premise is illogical and mis4epresentative.
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Post by Pacifico on Mar 27, 2023 11:29:08 GMT
Are you just picking random phrases out of the air? I asked a perfectly simple question with regards to this idea of yours that the Tories have something to do with the policies of the ECB - and I get a response with something to do with inflation. Care to answer the question I asked?. In the same way as the American rate of interest affects everyone else. It has to do with the fact that economics is a global issue and controls international investment decisions, national debt and nominal wealth and the value of their currency / ability pay off debt. As well as counter inflation. I still dont see where the Tories come into this. The level of interest rates and wage stagnation in the EU has nothing to do with the UK or the Tories. |
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Post by buccaneer on Mar 27, 2023 12:40:14 GMT
The ECB controls interest rates, NOT wages. That is why people are free to travel and search out higher wages. The link asks: "The question is, why? Why do we suppress wages while letting let profits rip? " I sincerely thought you were talking about the UK, where the TORY government suppresses wages in the public sector, yet those very MP's charge tens of thousands for half a dozen board meetings, rake in huge profits. Private businesses have to compete for the best staff. They would go bankrupt if they really did suppress wages Employees would go somewhere else. The whole premise is illogical and mis4epresentative. I didn't mention the ECB. You assume the article in the OP and subsequent one I posted before is a lie and all made up. But you've failed to refute it with your opinion. Sorry, but I'd put more weight in the EUObserver than your frantic defence of anything that critiques the EU. |
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