There is one other complication in the question about inflation and real
wages: Many of the people in the working class are NET DEBTORS. This is
particularly true of the section that owns their own homes -- as well as those
who are struggling to get out of the working class with heavy student loans or
trying to start a small business with lots of borrowing. NET DEBTORS are
helped a great deal by inflation --- here is the class basis, IMHO, of the
actions of the monetary authorities that Rudy is identifying:
>
>I believe that monetary authorities, representing capitalist class
>interests, conciously promote a certain level of inflation to
>cut or keep real wages in check. However, they don't want inflation
>to get too high because it would undermine the role of the $
>as international money which would destablize the world economy.
>
>
>Rudy
The latter was certainly a major reason for the activities of Paul Volcker in
1979-82 --- but the general anti-inflation bias sees inflation as dangerous to
financial profitability.
Mike
Mike Meeropol
(bitnet%"mmeeropo@wnec")
(in%"[EMAIL PROTECTED]")
(#100)
