Stock Groups

higher public spending and wages risk fanning inflation -Breaking

[ad_1]

2/2
© Reuters. FILE PHOTO- The British Prime Minister Boris Johnson and the Estonian Prime minister meet at 10 Downing Street in London, Britain, June 6, 2022. Alberto Pezzali/Pool via REUTERS

2/2

LONDON, (Reuters) – The British Prime Minister Boris Johnson said Thursday that inflation had risen so much that it was impossible for the government to simply increase spending to help people get through the cost of living crisis. Furthermore, increasing wages would only fuel further price increases.

Johnson stated that while it was correct for the government to increase spending during the COVID crises, a healthy and strong economy wouldn’t emerge if they continued in this manner.

You can’t spend your money to get out of inflationary pressure. Johnson spoke in north-west England and said that you must be cautious not to increase inflationary pressure. Johnson added that raising wages to meet inflation could lead to a wage-price spiral.

You can’t simply spend less and pay more when a country is facing inflation. It is important to address the root causes of inflation.

[ad_2]