How inflation ends depends on which class holds power over the others
Evidence
In a power game like this, it is power that matters above all. If capital dominates labour, inflation ends when workers accept a permanent reduction in their wage share of total income. If government dominates capital, as for example in China, inflation dissipates when capitalists and rentiers acquiesce to a chunk of their loot being used to pay off a portion of the state’s deficits, debts or expenditures. The question, for us, then becomes: what happens in societies where cloud capital dominates terrestrial capital and labour is at the bottom of the pecking order? — Yanis Varoufakis, Technofeudalism, 527
Categorization
- XREF: Predictive model: the inflation resolution mechanism (wage-squeeze vs. state-recapture vs. cloud-rent-expansion) varies by which bloc dominates — a comparative frame useful for the reader’s platform power analysis. — connects to: Inflation acts as a class-specific tax benefiting debtors over creditors — Mark Blyth, Austerity: The History of a Dangerous…, 46; Experts recognized wage-cutting as the crux of class conflict over monetary policy — Clara E. Mattei, The Capital Order: How Economists…, 966; Inflation is a social power contest over bargaining power, not a purely monetary event — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 526 (+3 more)
- corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 527
Broader Connections
- Inflation is a political class-war flare-up rather than a monetary phenomenon
#corroborates(0.82) — Yanis Varoufakis, Technofeudalism, 539 - Fiscal and monetary austerity jointly transfer capital accumulation costs onto working classes
#expands(0.80) — Clara E. Mattei, The Capital Order, 774 - Inflation triggers both social unrest and questioning of capitalist legitimacy
#exemplifies(0.75)