Thread by @Lanampayne

Not one word. Not one about the real problem. It’s not wages. It’s soaring profits that are the problem. Come on: workers wages have not kept pace and the one chance to catch up and central bankers coaching biz not to raise wages too much! #cdnpoli cbc.ca/news/business/…

In June, @CntrFutureWork warned this would happen. That workers would pay the price for inflation padding corporate profits: centreforfuturework.ca/2022/06/01/bus… And here we are! /2

Canada's central banker:

"As a business, don't plan on the current rate of inflation staying. Don't build that into longer-term contracts. Don't build that into wage contracts. It is going to take some time, but you can be confident that inflation will come down." /3

But what about this? From May 2021 to May 2022, inflation rose by 7.7%. Average wages increased at half that rate. When adjusted for inflation: avg wages ACTUALLY FELL by 2.2% over this period.

But profits? Another story. /4

Corporate after-tax profits as a share of overall economic activity in Canada are the HIGHEST ON RECORD.

This is a period for Canadians workers to catch up. Since the mid-1990s real wage growth has significantly lagged for workers. /5

Inflation in the last 25 years, grown by 60%. Real wages over the same time, have increased by less than half that.

By letting profits run wild, it has fueled further inflation. The question for Canada's finance minister is what she plans to do about that? /6

#cdnpoli #cdnecon

Or is the plan to make workers pay the price with higher interest rates and austerity?

Leaving this here for the Bank of Canada @bankofcanada and @cafreeland

Time to stop worshiping at the altar of the 2% god.

thestar.com/business/opini…

#cdnpoli #cdnecon