In a clear echo of the 19th century, ministers are once again scapegoating workers for the rising cost of living. This is despite the fact that real wages have fallen for 19 months in a row, and that the pay packets of those in finance and business have ballooned.
The latest labour market data shows that unemployment has unexpectedly risen, while inflation remains stubbornly high. This used by the government to justify its attack on workers’ pay, with calls for wage restraint being made in the name of fighting inflation.
However, this is a false dichotomy. Wages are not driving inflation, and in fact, they are falling further behind. The Bank of England’s own data shows that nominal pay gains are being driven by the very highest earners.
This is a clear example of how the capitalist system designed to enrich the few at the expense of the many. The workers asked to sacrifice their living standards in order to protect the profits of the rich.
This is a recipe for disaster. If workers’ wages continue to fall, then the economy will grind to a halt. People will simply not have enough money to spend, and businesses will not be able to sell their goods and services.
The government needs to abandon its austerity agenda and start investing in the economy. This means providing decent wages for workers, so that they can afford to buy goods and services, and so that businesses can thrive.
Only then will we be able to create a sustainable economy that benefits everyone, not just the wealthy few.
A Marxist analysis of the situation
From a Marxist perspective, the current situation is a clear example of the class struggle. The working class squeezed by rising prices and falling wages, while the capitalist class is seeing its profits soar.
The government’s calls for wage restraint are simply a way of shifting the burden of inflation onto the shoulders of workers. This is a clear example of how the capitalist system designed to benefit the rich at the expense of the poor.
The only way to break this cycle is for workers to unite and fight back. They need to demand decent wages and working conditions, and they need to refuse to scapegoated for the problems of the capitalist system.
The future of the economy depends on it.
