Tuesday, 22 April 2008
The ECB Inflation Mandate and the Poor
Here is a clear message to the ECB: Follow your mandate carefully otherwise you might push government to deal with social unrest. Inflation is the first threat to the poor or the fragile one (elderly and the future poor: the unemployed).
Food price (wheat, rice) , petrol, electricity, rent are increasing at an alarming rate while at the same time wages, adjusted to inflation, are NOT following up for the vast majority. (I have to say some earn already a lot and give themselves generous rise on behalf of the citizen : see thin and fat article )
The problem can already be seen in Finland and the U.S. (see this article).
"Increasing numbers of people in the Helsinki region and other areas have been queueing up for free food."
"The need is considerable in the Helsinki region, but in recent times we have been contacted from other parts of the country, where there are reports of a need", Hursti, a private volunteer who distributes food in Helsinki, says.