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Hidden inflation - The Tory stealth tax on the poor


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The whole world bases its economics on growth. Infinite growth with finite resources isn’t and never has been possible. It is only possible for one sector to have growth at the expense of another. If a company made ‘x’ amount of profit last year, the shareholders will be pushing for ‘x+y%’ this year. In reality, the only way this can happen, is by your competitors losing that equivalent ‘y%’, or you finding new markets or new product, where your sales can relieve another sector of some of their income.

 

In this country, probably due to our own arrogance, a lot of us, have for a generation or more, paid ourselves more than we are worth. Devaluation of our currency to remain competitive and paying ludicrous amounts of tax to foot the domestic bill, has been the only way of levelling this out. So whether its Harold Wilson devaluing the pound overnight or the more recent printing of more money, it all amounts to the same. The pound in our pocket buys less because we haven’t actually earned it. Inevitably, the poor suffer the most.

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Growth doesn't just mean an increase in production though, it means progress as well, and what's to say that we will run out of the natural resources here before we're capable of accessing the natural resources elsewhere (like the moon for example, or further afield).

 

You're analysis about profit is flawed as well, another way to increase profit is to improve efficiency of production, through progress (ie a new technique for manufacturing things). Although what you describe happens as well, you don't see many steam engine companies still producing a healthy profit for example, but that doesn't make us all poorer for it, they lost out as better alternatives became available and purchases and investment shifted towards the companies making the new products.

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Hmm, who was in government when this happened?

 

Shrinking Mars bar: Size cut by 7.2% but price stays the same 3rd June 2009

 

http://www.dailymail.co.uk/news/article-1190395/Shrinking-Mars-bar-Size-cut-7-2-price-stays-same.html

 

And what about house prices?

 

If your debt is increasing and your wage is decreasing, stop buying crates of ale.

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Growth doesn't just mean an increase in production though, it means progress as well, and what's to say that we will run out of the natural resources here before we're capable of accessing the natural resources elsewhere (like the moon for example, or further afield).

 

You're analysis about profit is flawed as well, another way to increase profit is to improve efficiency of production, through progress (ie a new technique for manufacturing things). Although what you describe happens as well, you don't see many steam engine companies still producing a healthy profit for example, but that doesn't make us all poorer for it, they lost out as better alternatives became available and purchases and investment shifted towards the companies making the new products.

 

Forgive me if I’m not thinking so far ahead regarding raping the resources of other planets ! Whilst I’ll accept your argument regarding increased efficiency and new techniques, for the most part these are generally short lived, as your competitors usually also have the new techniques and technology, so you are back to square one. Take my own business as an example. If I could go back to when I first started work in the 60’s with the power tools that I have at my disposal now, I could make a mint. However, today, every workman has the same equipment, so clearly, whilst a lot of jobs may get done in a quarter of the time.........we only get paid for that time, not the time it would have took in the 60’s. Am I making sense here?:)

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