logo
episode-header-image
Nov 2025
45m 10s

Wages, jobs and inflation

Steve Keen & Phil Dobbie
About this episode

This week Phil and Steve look at cost-plus inflation, driven by rising wages. Right now its being given as the reason that services inflation is remaining sticky and that’s why many central banks are reluctant to reduce interest rates. Steve says it’s a far more sensible assumption than the neoclassical belief, promulgated by Milton Friedman, that inflation is always and everywhere a monetary phenomenon.


It's not just workers who can put prices up, of course. Companies can increase their margins, and we saw a fair bit of that post-COVID. Burt what of the tech-driven future, where wage negotiations will be harder. Basically, we’ll be lucky if we have a job. Does that mean the tech bros call the shots and wage driven inflation will be a thing of the past?


Hosted on Acast. See acast.com/privacy for more information.

Up next
Oct 7
The inequality of fear and greed
Fear and greed don’t affect everyone equally. In this episode, Phil Dobbie and Steve Keen explore how debt, financial bubbles, and economic policy can reward those at the top while leaving workers, renters, and households to carry more of the risk. From market crashes and specula ... Show More
39m 50s
Sep 30
Should Britain rejoin the EU?
Phil and Steve unpack the case for a renewed relationship with Europe, from trade and supply chains to freedom of movement and political sovereignty. They debate whether the euro still makes sense in an era of low-cost digital payments, why a shared currency can leave national ec ... Show More
37m 53s
Sep 23
Are bond vigilantes in charge?
Bond yields are not “warning” governments to behave—they’re exposing a system where central banks and treasuries can backstop the entire market whenever they choose. Steve says the panic around government debt is mostly an economic fairy tale, and the real danger is what happens ... Show More
32m 43s
Recommended Episodes
May 2021
Andrew Sheets: Inflation - Is It Here to Stay?
<p>The debate over inflation was center stage this week and although the current environment is a far cry from the 1970s, rising prices could mean complications for both companies and central banks.</p> 
3m 48s
Sep 2022
The Economy's Conflicting Signals
<p>Inflation is higher than it’s been in a generation, but policy makers still have room to maneuver. Philipp Carlsson-Szlezak, BCG’s global chief economist, is concerned about inflation but not yet willing to say the world is in a new era of constantly spiraling prices and colla ... Show More
23m 51s
Feb 2023
What is the cost of lower inflation?
With food and heating prices going up, and wages not rising at the same rate, there is pressure on central bankers across the world to tackle inflation. But is this the right approach? And can it be done without crashing the economy?Ed Butler hears from parents at a cheerleading ... Show More
18m 17s
May 2021
The new inflation threat
Faster price rises are coming as countries recover from the pandemic. But how painful will it be for consumers and the global economy? Mohamed El-Erian, economic adviser and president of Queens' College, Cambridge, thinks central banks are already behind the curve when it comes t ... Show More
18m 27s
Apr 2024
What Does 3.5% Inflation Really Mean?
<p>On today’s show we are taking a look at the Macro economy. The bureau of Labor and Statistics published the latest CPI data which came in a bit hotter than expected. This is implying that the Fed will need to keep interest rates higher for longer to combat inflation. The Fed k ... Show More
6m 38s
Nov 2021
Is inflation making a comeback?
Inflation has hardly been seen in the developed world economies for the last three decades. But now some economists are warning it could be returning with a vengeance, because of supply chain problems, post-Covid exuberance, and higher wage demands. What is going on, and should w ... Show More
18m 24s
Jul 2023
Inflation Fixation
As inflation continues to outstrip wage growth for all but the top ten per cent of earners, interest rates look set to keep rising at least until February 2024. The political economist William Davies joins Tom to consider the reasons for high inflation and the Bank of England’s r ... Show More
55m 43s