I came across this fine Jeremy Corbyn Speech in which he explicitly talks about the ideology of the working class which is utterly deflationary to output. It’s from 2010, and shows how clear his understanding of the way the world works, is. It is extremely rare and in my opinion, no politician has come even remotely close to it....The Case for Concerted Action
Fine Jeremy Corbyn Speech From 2010
V. Ramanan
2 comments:
Oops ideology of the ruling class.
Typo corrected in my post.
The deflation imposed on the EU periphery is not attributable to the “ruling class”. Deflation (in the “cutting aggregate demand” sense of the word) reduces GDP, and I fail to see why that’s in the interests of the “ruling class”.
That deflation is unfortunately an inherent characteristic of a common currency area like the Eurozone. That is, the Eurozone’s method of dealing with lack of competitiveness in periphery countries is to cut demand in those countries with a view to bringing about a fall (or less fast rise) in wages and prices in those countries.
Obviously that’s a disaster for Greece etc, but that’s common currencies for you.
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