Weak wage bargaining alone failed to make post-pandemic inflation moderate or transitory

Evidence

Many hoped that the inflation resulting from blockages in the supply chain would be mild. The expectation that inflation would be ‘transitory’ had a logic to it: workers’ bargaining power in the 2020s was a shadow of its former self, when in the 1970s mighty trades unions could push for wage rises above the inflation rate. It followed that with only limp wage rises to support them once government furlough schemes and income support came to an end, the purchasing power of the masses would simply be depleted by rising prices, demand for goods would ebb and prices would fall. It hasn’t panned out that way. — Yanis Varoufakis, Technofeudalism, 525

Categorization

• corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 525
• XREF: connects to: Rising wages reflect monetary conditions rather than union coercion causing inflation — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 976; Expansionary adjustment required cuts plus wage moderation plus prior devaluation — Mark Blyth, Austerity: The History of a Dangerous…, 464

Broader Connections

• Expansionary adjustment required cuts plus wage moderation plus prior devaluation #contradicts (0.85) — Mark Blyth, Austerity, 464
• Rising wages reflect monetary conditions rather than union coercion causing inflation #qualifies (0.78) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 976