TUC general secretary PAUL NOWAK speaks to the Morning Star’s Berny Torre about the increasing frustration the trade union movement feels at a government that promised change, but has been too slow to bring it about
Inflation: refusing to pay for it
In the past, the Western ruling class has sought to manage inflation by ensuring that rising prices are not matched by growing salaries — but the global environment and domestic resistance from the organised working class are making this difficult, writes PRABHAT PATNAIK
The fact that inflation is sought to be controlled by squeezing the share of the working class does not mean that the working class was responsible for starting the inflationary process. In fact, the two phenomena have nothing to do with one another.
DIANE ABBOTT exposes the misconceptions, rumours and downright lies perpetrated around immigration issues
With 12,000 fewer teachers since 2010 and dwindling resources, Scotland’s schools desperately need investment to support diverse learners rather than empty promises from politicians, writes ANDREA BRADLEY
Reversing outsourcing is the pre-election promise the government must honour, says Unison general secretary CHRISTINA McANEA
EMAN ABU ZAYED reminisces about the perilous time her family and neighbours endured in northern Gaza and how they were forced, in fear of their lives, to flee south
The EIS president who defended Marxist politics in the 1980s fought Thatcherite educational policies while organising Teachers for Peace rallies and ensuring Morning Star circulation in Scotland’s pit villages and factories, writes JOHN FOSTER
ECONOMISTS distinguish between two kinds of inflation: “demand-pull” and “cost-push.” Demand-pull inflation is said to occur when there is excess demand in a situation where supply cannot be augmented, because full capacity output has been reached in one or more crucial sectors. Wartime inflation is a classic example.
In India during the pre-neoliberal, dirigiste period, inflation was often the result of an insufficient grain output relative to demand, arising from a poor harvest.
Cost-push inflation on the other hand occurs when supplies can be augmented, as the economy is nowhere near full capacity in key sectors, but one of the classes tries to raise its share of output, by demanding a higher price for the input it provides, while other classes are unwilling to lower their shares, giving rise to a tug-of-war, which manifests itself through inflation.
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