UK economic crisis: Bank of England Economic economist says Britons need to accept they're poorer

Recognizing this, workers should give up demanding higher wages, while companies should stop passing on the full share of increased costs to consumers, Bank of England chief economist Hugh Pill has said.

He said that at present the game of 'pass the parcel' is going on in Britain. Under this, both the companies and the working class are trying to pass on the burden of high inflation to someone else. But now they have to give up this habit.

Taking part in a podcast produced by Columbia Law School, Pill said that given the cost of energy, it is imperative that ordinary people demand higher wages. On the other hand, due to the increase in cost, restaurants will increase the price.

But now everyone has to remember that Britain is a big importer of natural gas, the cost of which has risen far more than Britain earns from exports. Britain mainly exports services.

Pill said- 'If the cost of the things you buy increases, then your situation will be worse. But now it has to be accepted that the situation has turned worse.

Trying to retain real spending power will have to be abandoned now. But we are not ready to accept this reality. We are not ready to accept that our condition has worsened and we all have to bear the burden of these conditions. 

Last year, Bank of England Governor Andrew Bailey also said the same thing. He had said that the employees should not demand a hike in wages, so that prices could be prevented from spiraling out of control.

Then this statement of Bailey was strongly criticized. The Guardian newspaper has said in one of its reports that now Pill's comments may also have to face severe criticism. Employees of many sectors in Britain are demanding a pay rise in view of inflation. Strikes have been taking place on an almost daily basis to press for this demand.

The Bank of England has also been criticized for the behavior of its top executives. On the one hand, these officers have asked the common employees not to demand increment, while their own salaries have been increased continuously.

Bailey was paid £495,000 in the year ended 28 February 2022. Pill was paid an extra £88,000 for almost six months last year. Due to this, his annual salary became one lakh 80 thousand pounds. Whereas last year the average annual household income in Britain was just £32,300.