It is clear what caused such statements. The country has high inflation, which does not want to drop below 10%, and the rise in food prices is fantastic – more than 19%. At the same time, food inflation is only increasing, and there is no end in sight, and the Bank of England is precisely responsible for keeping prices within acceptable limits.
What does a normal worker do when the cost of living increases? True, he is going to demand an increase in wages, and the entrepreneur charges the cost increase to the cost of the final product, that is, he invites the consumer to participate in solving his problems. This creates a vicious circle of continuous inflation, which Mr. Pill will break. If people accept a lower standard of living and are willing to work for less money, inflation can be brought under control somehow. From there, in fact, a mocking proposition arose that in order to increase milk production and save feed, a cow should be fed less and milked more.
It is certainly an incredible story. If in Russia, which in the West is considered almost Mordor, a senior official addresses the public and makes a statement about the need to lower the standard of living to fight inflation, then everyone will attack him . And the right, left, pro-government and opposition media will instantly tear it apart like an ace on a heating pad. He will be asked if he wants to be the first to donate his rather large salary to those in need. By the way, Mr Pill receives £190,000 a year. They will ask what he was thinking, suggesting people are going back to poverty, and is he really an economist, and did he buy his college degree in an underpass?
In a nutshell, there will be many different questions. He will have to find excuses, assure that he was misunderstood, and as a result of the debriefing, he will most likely lose his job.
What about the UK? But nothing. In any case, I could find no evidence that this statement had any unpleasant consequences for Mr. Pill. What does it say? The fact that he did not just blurt out, but conveyed to the people the message of the financial and power elites, which they wanted to throw into public opinion. So that people gradually get used to the new realities. Britain is losing its competitiveness, body fat is depleting, poverty and declining living standards are inevitable. In a word, the government can no longer pretend that nothing is happening and that the difficulties are temporary, and that all the best for the country is yet to come.
Indeed, nothing good awaits the UK. The technology that was the basis of its power 100 years ago now belongs to the whole world, government debts have exceeded 100% of GDP, that is, they have become unpaid. So the UK really has no choice and will have to drive down labor costs to prevent the economy from sinking.
And not just the British. Although there are no definitive data on GDP per capita at constant prices, it is clear that inflation in 2022 has eaten away all or most of income growth in all major countries in the world. collective West. And not just income, but also savings. The well-being of Western retirees is explained by the fact that people start saving as soon as they go to work and save for old age throughout their lives. The attractiveness of long-term savings is explained by low inflation, but here in a year it took and ate where the tenth, and where the seventh part of long-term savings. And this is, without exaggeration, an economic catastrophe for the inhabitants of Western countries, that is, they have really become poorer, and much more and for years to come.
Expectations for this year are also rather murky. Rather high inflation will most likely continue, while the economy will see little or no growth at all. Citizens’ real incomes will once again be in the red. Europe is therefore effectively returning to the poverty it got rid of more than 50 years ago. Or rather, I thought I got rid of it.
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