Nicely done, nicely done

The Sage says:

TfL have also got to put up fares. That can simply be described as a tax increase on London to pay for coronavirus.

OK

And thereafter, Tories don’t understand that fare increases right now are inflationary: which is not what we need.

OK. Then in comments:

David Moon says:
May 15 2020 at 8:58 am
Tories don’t understand that fare increases right now are inflationary: which is not what we need.

Don’t you mean deflationary?

Reply
Richard Murphy says:
May 15 2020 at 9:15 am
How is a fare increase deflationary?

Because tax is deflationary, taking money out of the economy, as MMT says it does?

9 thoughts on “Nicely done, nicely done”

  1. Let’s remember that 515 TfL staff earn more than £100,000. It’s important that the peasants are charged higher fares so that the People’s Workers can be paid properly.

  2. How is tax deflationary? The money isn’t burned, it’s given to someone else to spend.

  3. RlJ

    “The money isn’t burned”

    In Spud’s MMT land it is. They are like crazed mad dog capitalists, using fifty pound notes to light their incense sticks.

  4. @ Roue le Jour
    We have seen that governments spending/handing out vast sums of money for no good purpose is inflationary. So reducing the amount that they do is disinflationary [not necessarily deflationary] – making London commuters to pay a higher minority of the cost of Tfl is disinflationary because there is less money chasing the same amount of non-Tfl goods. Tfl will NOT be producing any more goods as a result of the increase in fares and there is no reason for the general level of prices to rise in consequence (I cannot think of a single line of business other than West End entertainment where the additional costs are universally applicable across all competitors so the price will rise).

  5. Didn’t TfL claim they had more staff off sick than the entire number of reported Covid cases for London at one point

  6. @Ummmm

    iirc Yes. Plus tube “drivers” sit in a self-isolation cabin. Perfect opportunity for BoJo/Shapps to pass emergency legislation to run tube trains driverless as they’ve been capable of since 1960s. Then do an 80s Reagan ATC sacking too

    If Left want to blackmail, Right must fight their fire with Napalm

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