Experts recognized wage-cutting as the crux of class conflict over monetary policy

Evidence

Of course, lower wages as an “indispensable condition” for capital rehabilitation was the opposite of what people were demanding. And once again, these experts were aware of the class confl ict in the offi ng. Hawtrey wrote: “It seems not unlikely that the diffi culty of reducing [wages] again will be the determining factor in the settlement of the future monetary units.” — Clara E. Mattei, The Capital Order, 966

Categorization

• XREF: connects to: Budget cuts under Hawtrey’s logic functioned to reduce working-class disposable income — Clara E. Mattei, The Capital Order: How Economists…, 756; How inflation ends depends on which class holds power over the others — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 527; The Fed’s 2022 rate hikes deliberately targeted working-class consumption — Clara E. Mattei, Escape from Capitalism: An Intervention, 17 (+2 more)

Broader Connections

• Monetary austerity deliberately induced recession to discipline workers. #exemplifies (0.82) — Clara E. Mattei, Escape from Capitalism, 154
• The Fed’s 2022 rate hikes deliberately targeted working-class consumption #exemplifies (0.80) — Clara E. Mattei, Escape from Capitalism, 17
• How inflation ends depends on which class holds power over the others #expands (0.78) — Yanis Varoufakis, Technofeudalism, 527