On guard duty

Well-paid economists in the banks, and radio commentators are agreed that to lessen the impact of inflation we need to have more people unemployed, higher interest rates, and reduced household spending. 

The unemployment that is being talked about is of low paid workers. Because, when there is low unemployment, low wages tend to rise. Higher interest rates will hurt most the lower middle group who have managed to get a mortgage and a trebling or more of the interest rate is going to hurt very badly.

The low paid workers, those on benefits, the small business owner is unable to reduce spending because all they buy are essentials.

Big businesses hand on every cost increase with a margin added for good measure. Investors will rub their hands with glee as their investments produce more income while doing no more good. 

This morning I heard a bank chief economist being interviewed (while I was driving to work). The  interviewer was Kim Hill who is very smart, and able to surprise those she is interviewing with a sudden twist in the questioning. The economist had just finished agreeing with her of how painful to the ordinary workers and their families will be the effects. Her surprise question (more of a statement) was along the lines of "so capitalism is failing then". He stuttered his disagreement, but offered no real rebuttal.

But then, of course, he is right. Capitalism is continuing to work; for the capitalists, and only for the capitalists, and other already wealthy persons.

Today's extra was seen on the side of the road. The disc has lots of lichen on it, and no doubt produces a picture as disrupted as what increasing the cost of money only hurts those who have barely enough to live on.