So if people are going to cut back on spending and people are also asking for wage increases...

[cakeorwine]

People spending less is going to mean less money spent on services and goods. So companies make less money.

People ask for higher wage increases. Companies either don't have money to pay them (as people are spending less) or they increase costs of their goods so goods cost more.

Public sector workers ask for wage increases. Government and Councils increase taxes to pay for them.

Index linked benefits and pensions increase by inflation so Government needs to increase taxes / make cuts to pay for these increased costs.

AIBU to think this all a bit depressing?

I am worried I won’t be able to continue with my job and living in London.

As a single person I don’t know how I’ll afford rent (which has gone up by almost 20% in London). Bills. Travel. Rising petrol, rising food costs.
My salary won’t increase.

I’m genuinely worried and suffering with sleep anxiety.

@cakeorwine

I'm sure inflation will have miraculously been reduced by next September

They will probably redefine it.

Yes I imagine so.

We could always tax wealth, instead of income. There's plenty of that floating about.

Or am I misinformed?

Very misinformed. I am private sector and have never been given a pay rise because I’ve asked for one. As a PP says, pay rises are given because it suits the company to give one… usually for staff retention reasons. Pay has to be competitive, or they won’t attract the people they want in the jobs.

Well - if people don't get much of a pay rise, then that's going to be even worse for the economy.

Less money to spend, less economic stimulation.