Urban75 Home About Offline BrixtonBuzz Contact

The economic causes of the cost of living crisis

Greedy destructive bastards. Ever tried arguing with a Libertarian?

You can't really, because there's no shared ground. For you or me needless human suffering on a massive scale is a bad thing, something we should actively work to avoid. But if someone genuinely doesn't care about that just so long as they personally can do whatever they like, where do you even start?

I might try and point out that wealth hoarders don't actually tend to be very happy, and that they never get to the point where they've hoarded enough and can relax and enjoy it. Which is true, but it'll never get past the layers of denial. You'll get a stock response, usually 'you're just jealous' which again comes from a place of not sharing any basic values or objectives with the person they're talking to.
 
From the IMF via Richard Murphy. The impact of rising prices on the poorest in the UK is the second biggest and the contrast between the effect on the rich and the poorest the most stark.

View attachment 335893

Regarding Estonia, it's just a guess and I could be wrong (based on someone I know who lived there for about a decade), but they have an underclass of ethnic Russians, the legacy of the USSRs attempts to turn everywhere in to Russia. Estonia has a fairly large minority Russian population of about 25% of the population - they generally work in menial or service jobs, are poorly paid and don't tend to mix very much with the ethnic Estonians. The high-end of the economy is fuelled by a gaggle of relatively rich, mostly tech-inflected companies. So the delta between rich and poor can be quite large, yet they where largely reliant on Russian energy supplies (total population approx. 1.3m but they spent more on Russian energy imports in 2021 than Portugal), so the cost of living there has a vastly magnified effect. Official inflation figures there were north of 22% last time I looked.

wealth hoarders don't actually tend to be very happy, and that they never get to the point where they've hoarded enough and can relax and enjoy it

I can't remember where I heard it first but it's served me well:
Money doesn't usually buy you happiness, just a better class of misery.
 
Regarding Estonia, it's just a guess and I could be wrong (based on someone I know who lived there for about a decade), but they have an underclass of ethnic Russians, the legacy of the USSRs attempts to turn everywhere in to Russia. Estonia has a fairly large minority Russian population of about 25% of the population - they generally work in menial or service jobs, are poorly paid and don't tend to mix very much with the ethnic Estonians. The high-end of the economy is fuelled by a gaggle of relatively rich, mostly tech-inflected companies. So the delta between rich and poor can be quite large, yet they where largely reliant on Russian energy supplies (total population approx. 1.3m but they spent more on Russian energy imports in 2021 than Portugal), so the cost of living there has a vastly magnified effect. Official inflation figures there were north of 22% last time I looked.

Lots of ethnic Germans among Estonia's upper classes apparently.
 
Town centre today, Saturday afternoon, most of the shops were all but deserted. 70% of them had a 70% off sale on. Felt a bit like right before the first lockdown started and everything was still normal on paper but in reality everyone was just waiting for the other shoe to drop. Yesterday's front pages were all saying 'worst recession since 2008 on the way' but I reckon it will be even worse than that. In 2008 we weren't crawling out the back end of a pandemic, there was no massive war in Europe fucking up energy supplies, we were still in the EU and the ongoing project to eliminate anything value-adding from the economy and replace it with speculation and carpetbagging was 14 years less far advanced than it is today.

The fact Sunak is planning to pay for tax cuts by borrowing against future growth, with no mention of where that growth will or even can possibly come from, shows us that the only remedy anyone can think for a poisoned patient is to feed them a bit more poison and see if that helps.
 
Town centre today, Saturday afternoon, most of the shops were all but deserted. 70% of them had a 70% off sale on. Felt a bit like right before the first lockdown started and everything was still normal on paper but in reality everyone was just waiting for the other shoe to drop. Yesterday's front pages were all saying 'worst recession since 2008 on the way' but I reckon it will be even worse than that. In 2008 we weren't crawling out the back end of a pandemic, there was no massive war in Europe fucking up energy supplies, we were still in the EU and the ongoing project to eliminate anything value-adding from the economy and replace it with speculation and carpetbagging was 14 years less far advanced than it is today.

The fact Sunak is planning to pay for tax cuts by borrowing against future growth, with no mention of where that growth will or even can possibly come from, shows us that the only remedy anyone can think for a poisoned patient is to feed them a bit more poison and see if that helps.

Was this in Nottingham (not sure if you’re still here)?

I haven’t been into the centre for ages.
 
Was this in Nottingham (not sure if you’re still here)?

I haven’t been into the centre for ages.

No, Exeter. Which is reckoned to be a prosperous city by current standards.

Nottingham city centre has been on its arse for years though. I'm only sad I never got to see them finally knock down the Broadmarsh centre, hideous carbuncle that it was.
 
No, Exeter. Which is reckoned to be a prosperous city by current standards.

Nottingham city centre has been on its arse for years though. I'm only sad I never got to see them finally knock down the Broadmarsh centre, hideous carbuncle that it was.

Yeah, we’re on the “if you build it, they will come” delusion these days.
 
Yeah, we’re on the “if you build it, they will come” delusion these days.

But in the case of Broadmarsh, it was already there and nobody came. The solution was to make it bigger. And then shock horror, the company that came up with that brilliant plan went bust.
 
The latest ONS labour market report shows that wages fell in the last quarter by the biggest decline ever recorded by ONS since they started collecting comparable data 2001.



If the TUC don’t think now if the time for a generalised strike (also known as a general strike) then you’d need to conclude that it will never think there is a time for one. But there are 90% of workers in the private sector who are not in a union who also need a pay rise.

Wages have been falling steadily and consistently for the last 40 years. As trade union membership falls across advanced economies wages fall with them. The more union membership falls the more wages fall. At all times and in all places.

You’d think, given the facts and it’s nominal stated role, that the Labour Party would seize the moment. To do so it could call for a new deal for workers with the establishment of mandatory collective bargaining in the key sectors of the economy, strategic wages councils, an end to employment practises that drive down wages - like zero hours contracts - and a strategy to confront the long demonization of unions with unions given a statutory and strategic role as champions of the 99% and to rebalance the economy by preventing a) capital flight and b) further transfers of wealth from the poor to the rich by extracting better wages.

Instead, silence, as idiot right wing economists and Tories fill the airwaves to warn of a wage prices spiral when pay is falling at the fastest rates ever recorded.
 
The latest ONS labour market report shows that wages fell in the last quarter by the biggest decline ever recorded by ONS since they started collecting comparable data 2001.



If the TUC don’t think now if the time for a generalised strike (also known as a general strike) then you’d need to conclude that it will never think there is a time for one. But there are 90% of workers in the private sector who are not in a union who also need a pay rise.

Wages have been falling steadily and consistently for the last 40 years. As trade union membership falls across advanced economies wages fall with them. The more union membership falls the more wages fall. At all times and in all places.

You’d think, given the facts and it’s nominal stated role, that the Labour Party would seize the moment. To do so it could call for a new deal for workers with the establishment of mandatory collective bargaining in the key sectors of the economy, strategic wages councils, an end to employment practises that drive down wages - like zero hours contracts - and a strategy to confront the long demonization of unions with unions given a statutory and strategic role as champions of the 99% and to rebalance the economy by preventing a) capital flight and b) further transfers of wealth from the poor to the rich by extracting better wages.

Instead, silence, as idiot right wing economists and Tories fill the airwaves to warn of a wage prices spiral when pay is falling at the fastest rates ever recorded.

I wish it was easier to show people exactly how we're being fucking robbed by this bullshit.
 
Regarding Estonia, it's just a guess and I could be wrong (based on someone I know who lived there for about a decade), but they have an underclass of ethnic Russians, the legacy of the USSRs attempts to turn everywhere in to Russia. Estonia has a fairly large minority Russian population of about 25% of the population - they generally work in menial or service jobs, are poorly paid and don't tend to mix very much with the ethnic Estonians. The high-end of the economy is fuelled by a gaggle of relatively rich, mostly tech-inflected companies. So the delta between rich and poor can be quite large, yet they where largely reliant on Russian energy supplies (total population approx. 1.3m but they spent more on Russian energy imports in 2021 than Portugal), so the cost of living there has a vastly magnified effect. Official inflation figures there were north of 22% last time I looked.



I can't remember where I heard it first but it's served me well:

wouldn't say the ethnic Russians are an 'underclass' necessarily but yes relations between the communitie can be tense. Brezhnev attempted to stuff Estonia and the other Baltic states not just with ethnic Russians but also people from all around the former USSR- Georgians and Azeris in particular.

The key question is language, those who learn Estonian, regardless of ethnic background, can progress. The Russian minority, particularly those older folk socialised in Soviet times, who can't / won't learn Estonian, face very limited employment options. However this is not a daft community. Putin made overtures to ethnic Russians to "come home" around 15-16 years ago and the few that did ended up in barely functioning housing in Noprospectsgrad far from anywhere. Despite the difficulties most 'ethnic Russians' rightly stay put.

Since the serious riots of 2007, now widely regarded as an early attempt at "hybrid warfare". relations between the communities have been largely calm. I was in Tallinn when Russia invaded Georgia in 2008 and it was a very tense ten days or so there.
 
wouldn't say the ethnic Russians are an 'underclass' necessarily but yes relations between the communitie can be tense. Brezhnev attempted to stuff Estonia and the other Baltic states not just with ethnic Russians but also people from all around the former USSR- Georgians and Azeris in particular.

The key question is language, those who learn Estonian, regardless of ethnic background, can progress. The Russian minority, particularly those older folk socialised in Soviet times, who can't / won't learn Estonian, face very limited employment options. However this is not a daft community. Putin made overtures to ethnic Russians to "come home" around 15-16 years ago and the few that did ended up in barely functioning housing in Noprospectsgrad far from anywhere. Despite the difficulties most 'ethnic Russians' rightly stay put.

Since the serious riots of 2007, now widely regarded as an early attempt at "hybrid warfare". relations between the communities have been largely calm. I was in Tallinn when Russia invaded Georgia in 2008 and it was a very tense ten days or so there.

Thanks for the background and detail; I didn't meet any russian minority whilst I was there but talked about the subject with a few estonians and there didn't seem to be much integration between the two communities from what I saw. But I can quite understand why they decide to stay put.

The entire soviet era still seemed like a very prickly point twenty years later, but as you say there wasn't any palpable animosity evident (it wasn't long after the cyberattacks as the friend we were visiting was out there as a direct response to this). No doubt the full report you linked to (thanks!) will prove prescient reading for the current invasion of ukraine.
 
Why have wages fallen ?? I thought we were at lowest unemployment rate for ages nobody can get staff etc etc what’s going on.
 
Oh right ok get it now, so it’s not really ‘wages fell’ it’s just inflation means everyone’s money is worth less.
That's why you hear them talk about real-terms wage changes; even if wages go up, when inflation raises prices faster than that, the real terms value of the wage falls.
 
If the TUC don’t think now if the time for a generalised strike (also known as a general strike) then you’d need to conclude that it will never think there is a time for one. But there are 90% of workers in the private sector who are not in a union who also need a pay rise.

Heard today TUC been warning people off having anything to do with the Enough is Enough campaign, as have some other unions. Not seen anything on paper/email/Twitter but be interesting to see what they're saying about stuff like that and Don't Pay.

E2A: Totally agree with 'If not now when?' stuff with the unions. Like ffs if they won't do stuff now and take risks, push things forward, work together, etc. then they never will. In which case they become useless for anything more than limited and very limited bargaining and individual member defence (excepting a few like the RMT, ASLEF, UCU to some extent).
 
Last edited:
Heard today TUC been warning people off having anything to do with the Enough is Enough campaign, as have some other unions. Not seen anything on paper/email/Twitter but be interesting to see what they're saying about stuff like that and Don't Pay.

Fucks sake. If you or anyone else gets get any more info on the TUC or others unions opposing EiE stick it on here please
 
AFAIK UCU has not taken an official position on EiE yet but in the recent live stream from the Gen Sec to launch the new national ballot campaign for HE there was lots of support for joining it. (Not really much mention of Don't Pay).
 
Back
Top Bottom