The global pandemic, now in its third year, has not halted the emergence of crises both domestic and international. The coronavirus itself continues to circulate and mutate; the far right is organizing “anti-mandate” convoys and occupations; and Russia has invaded Ukraine. Not unrelated to these difficulties, we are also facing rising inflation and, with it, two policy “solutions” that must be avoided at all costs.

The lowering of wages and fiscal austerity are the two standard responses to the problem posed by inflation. For workers, both cures are as bad as the disease. It is crucial to the shaping of the post-pandemic order to avoid falling into these traps.

Inflation is widely debated, deeply contentious, mobilized for political ends, and often misunderstood. By raising the costs of goods and services, inflation weakens the purchasing power of people trying to make it through the day. Typically, business-class analysts tend to explain inflation as a result of higher wages — the cost of paying workers more forces firms to pass these expenses onto customers.