I am admitting my ignorance here. Inflation hit levels above 10% because?
The reason I have heard are : people saved money during Covid by not travelling and going out (mmm. how this causes inflation is interesting, unless they all go out and spend, spend, spend). Secondly the Ukraine war – certainly the cost of fuel rose rapidly but has now fallen below prewar levels. Thirdly wage inflation – even private sector workers are getting less than inflation rises (and way less than public sector workers). Fourth – supply chain problems largely related to China and chips, but also container traffic being disrupted. None of these seem to explain inflation at 10+% and food inflation at nearly 20%.
But it is ok for energy companies and banks and the rest to make £billions – pay massive bonus’s and dividends. I do not get it? Surely this is inflationary? It puts money in the pockets of the rich. So either inflationary if they spend it, or wasted to the economy if they move it off shore?
Can someone show me evidence of rich investing in business? Companies go public to raise funds, and I get that risk they take. Companies also raise money to cover losses. But general trading on the stock market is pure gambling.
So Sunak stop hitting the poor with rent/mortgage increases and tax the rich – actually I would prefer some price caps which would be fairer.