With inflation running at levels not seen in at least a decade, many on the right are arguing — as they did back in the 1970s — that the problem lies with greedy workers arguing for wage increases in line with inflation.

If workers were not able to demand higher wages, the argument goes, the increase in inflation we’re seeing at the moment would be a one-off spike resulting from higher energy prices and supply chain issues. Instead, they argue, we’re on the verge of a “wage-price spiral” in which workers demand higher wages to compensate for rising inflation, which in turn drives up inflation.

The governor of the Bank of England, Andrew Bailey, drew fire last week for appearing to back such an argument when he made the case for wage restraint, pleading with British workers not to demand wage increases. Not only was this deeply hypocritical — Bailey earns more than half a million pounds a year — it was also economically nonsensical, as everyone from the head of the free market IFS to trade unionists were keen to point out.