Inflation, which was a massive phenomenon in the 1970s and which hadalmost disappeared in developed countries, has made a comeback. It wasparticularly important in 2022. ---- In fact, inflation doesn't meanmuch. This is an increase in the general price level. But not all pricesrise at the same speed. For example, if the price of labor, thereforethe salary, had increased faster than the rest, that would not bother ustoo much. In 2022, inflation in France was 5.2%, but the price of foodincreased by 7.3% (+26% for pasta!). Therefore, inflation is higher forthose whose food budget represents a greater share of their expenses,that is to say the poorest. Average wages have increased, but less thaninflation. On average, household purchasing power fell by 0.3%. On theother hand, the minimum wage increased by 6.6%. So low salaries haveincreased more than higher salaries, due to the pass-on of thisincrease. But be careful, we have also seen that for them, inflation ishigher...Already, of course, there is the cost of energy which is reflected notonly in the cost of fuel and heating, but on all products, since theyare manufactured and transported with energy. The price of gas increasedon average by 107% and electricity by 45%. Be careful, it's complicatedto follow. In fact, many companies have fixed price contracts, and theprice increases sharply with each contract renewal. So there arecompanies for which the cost of energy has not increased alongsidecompanies for which it has tripled... Gas, we can clearly see thegeopolitical reasons for its increase. For electricity, these are thelittle games of the European "free" market: electricity (not included inthe contracts already signed) is sold at marginal pricing, that is tosay at the cost of the last piece of equipment that we started toproduce electricity. We start up the cheapest equipment first, then ifdemand increases, increasingly expensive equipment, which causes asudden increase during peak periods. Explaining to you why we chose thissystem is not a brief article, it's an article. In fact, it comes fromliberal economic theory, a dogma in which I do not believe but whichguides the action of all governments and institutions. But what must beremembered is that in the end, the variation in the price of energyvaried greatly depending on the sectors and companies.Production is globalized. Companies do not hold inventory and order thecomponents or parts they need from anywhere in the world. But suddenly,if there is a pandemic or a war that disrupts transport, localizedshortages are created which cause costs to skyrocket. Furthermore,producers of these components may find it more profitable to sell to thehighest bidder than to increase production, which would requireinvestment in an uncertain world. From this point of view, France, queenof the "factory-free industry" strategy, is very vulnerable.Finally, some have already started to raise outrageous cries by raisingthe threat of the wage-inflation spiral. In the 1970s, the balance ofpower was better, and the unions obtained salary increases, increaseswhich companies made up for by increasing prices, so employees, tomaintain their purchasing power, demanded salary increases, etc. At thattime, the evolution of the balance of power partly crystallized in thisform. Inflation was analyzed by some as the result of the "struggle forthe sharing of added value". This explanation has no longer been validfor several decades, since the sudden end to wages in the 1980s.Certainly in 2022 the minimum wage has increased more than inflation,but between unemployment, part-time work, exceptional contracts, etc. wehave seen that purchasing power has declined. In fact, what bestexplains inflation is, as usual, a logic of profit. Dividends in Franceincreased by 13.3% in 2022. Dividends are the part of profit that is notreinvested in the company but distributed to shareholders. We aretherefore not witnessing a wage inflation spiral but a profit inflationspiral.And what makes it possible is that the competition with which we areconstantly bombarded to glorify capitalism does not exist in thissystem. Competition is defined by economists as a situation where noproducer and no consumer is large enough to influence prices. In short,a world where there are neither large companies nor large retailers.Where did you see this? Moreover, producers subject to globalcompetition (farmers, industry) have not seen their sales pricesincrease significantly.We live in a world of power relations, not only between capital andlabor, but also between capitalists. And we live in a world dominated byfinance. For finance, it is short-term profit that matters. So there arefewer and fewer long-term investments, and a universal race to reducecosts. How? On the backs of employees and on the backs of the weakest.In an economy where stocks are cargo in circulation, where we sourcesupplies from all corners of the planet for small segments ofproduction, logistics costs become strategic: hence the employment ofdrivers from Eastern countries to salaries in Eastern countriesthroughout Europe, undocumented immigrants in logistics, etc.Prices no longer really relate to what costs should be. They are imposedby the largest companies. And at the same time the European Union isincreasing the number of standards to prevent us from consuming andtherefore producing differently (standards on agricultural products,standards on buildings, electrification of the world, etc.).http://oclibertaire.lautre.net/spip.php?article4030_________________________________________A - I N F O S N E W S S E R V I C EBy, For, and About AnarchistsSend news reports to A-infos-en mailing listA-infos-en@ainfos.ca
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