Longer-term, we cannot discount the possibility that trends, including demography, may exert upward pressure on inflation. But government itself can influence the impact of those trends, for example by enabling greater female participation in the labour market through improved childcare and by engaging in other more active labour market policies, thus reducing the ratio of retired to employed people.
That’s pretty scary. Labour’s anti-inflation policy is based on getting more working-age women to work and on increasing the pensionable retirement age.
The initial claim is that if more non-working women become working women then the ratio of working to retired changes. Which seems obvious enough really.
Ritchie’s started complaining about raising the retirement age.
There will also be those with long memories who recall his authorship of the TUC budget submission one year. Where he made the insistence that top end income tax rates should rise so as to force more non-working women in upper income households to go out to work…..