One headline they’ll want you to remember from the Budget is the 4.4%, above-average increase to the Living (or just-about-surviving) wage. Could be seen as a generous move to help the most vulnerable to pay their bills, but here’s the economist and politician’s interpretation:
The poorest usually spend rather than save so this will boost consumer spending. Higher earners will want more too, so the ‘gap’ will be maintained. Companies will increase prices because of higher demand and to cover their higher wage bills. And all because the government needs inflation; it’s the only way they can ‘reduce’ the real value of their debts.
Cynical? Moi?
