Podcast 107 - Inflation - The High Cost Of Profits

Socialist correspondent

The news media and the Government seem intensely relaxed now the annual rate is “only” 4.2%. Yet vast sums have gone to the banks and corporations in the meantime, not least because higher interest rates, raised to bring inflation down, have speeded up the transfer of wealth from the poor to the rich. As a result, householders have permanently lost the income already spent on higher prices, and are still paying more now for gas, electricity, petrol, food and essential goods. Mortgages are higher and rents have always been high anyway. Life has been made harder, partly because of the Bank of England's so-called solutions. Even successful strikes for more pay have not fully recovered the incomes lost. The question arises: how would a progressive government tackle inflation differently, to narrow the gap between rich and poor? Can we escape from capitalist economics on this question?