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A Question for Economists

patchwork_cat · 2012-03-21 10:30:19

I have a question for economists. Inflation has averaged around the 5% mark for the last couple of years (aware it is not rising quite so quickly now) and in real terms for us as a family made of a public sector employee and a SAHM we are £300 approx worse off than 2 years ago. Inflation however is still growing and yet we…

Comments

Thrugelmir Posts: 89,546 Forumite

21 March 2012 at 11:40PM

Radiantsoul wrote: »

I think what is happening is that wealth and income is being redistributed away from the "West", largely as a result of the collapse of borrowing. This is basically a rebalancing and is being achieved by raising prices here rather than lower wages.

It is probably a good thing on some levels.

The world has changed in the past 20 years.

The Chinese are no longer prepared to be cheap labour slaves for the consumers in the West.

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