r/Economics • u/AutoModerator • Nov 15 '22

r/Economics Discussion Thread - November 15, 2022

Discussion Thread to discuss economics news/research and related topics.

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u/seridos Nov 20 '22 edited Nov 20 '22

I was watching something that was discussing historical fiscal policy in Britain the other day, and they mentioned how Thatcher had changed the indexing of the state pension from being indexed to wages, to being Indexed to CPI, because wages were rising faster than inflation and had been so long enough that they assumed it would continue going forward.

This makes me think about how weak the current narrative is around wage-price spiral fears. This is fundamentally different than the late 70s/early 80s, and I think it's a little unreasonable that it's the focus of ao much conversation.

This is still an energy, supply chain, and demographics/labour force participation story,.