Labour's Plans To Boost Workers' Pay Risk Pushing Up Mortgage Bills

[naomi24]

//Experts have warned that Labour’s ambition to boost workers’ pay risks stoking inflation – meaning interest rates and mortgage bills could stay higher for longer.

Economists at HSBC said that forcing firms to spend more on wages could drive up prices. 

Alternatively, it could prompt firms to cut jobs, fuelling unemployment, according to an analysis of Labour’s plans by Europe’s biggest bank.

The stark warning threatens to check Labour’s progress in persuading business leaders and financial markets that the prospect of a change of government poses no cause for alarm.//

 

https://www.thisismoney.co.uk/money/markets/article-13539253/Labours-plans-boost-workers-pay-risk-pushing-mortgage-bills-HSBC-warns.html

 

Surely all of that is a no-brainer.  Does anyone really need experts to spell it out?

[ToraToraTora]

Yep - more wages = higher inflation = interest rate rises = less disposable income. Socialist have always struggled with that basic equation.

[sandyRoe]

But the growth in the economy that they, and every other political party, want will surely make unemployment a thing of the past, like rickets and TB.

[newmodarmy]

I expect the markets have already factored this in as they have known for a while a Labour government is inevitable.

[Sinead_O]

Growth under Labour is by no means guaranteed, another gamble by the Toolmakers son.