*That's conservative in the true sense, although this does apply to the vast majority of Tories.
When the majority of the population find that inflation is pushing up the cost of everything while their pay remains much the same, their disposable income will be reduced. That means they'll have to reduce their spending on luxury items and even on the essentials - and that affects private profits. If, at the same time, more and more people are receiving in-work or out-of-work benefits (due to high unemployment, underemployment and low pay), not only does the country's welfare bill increase, tax income also falls - a double hit to government coffers. This has been the case in the UK for some time now and has been getting much worse since the recession began.
If companies weren't so focused on reducing their costs, they would see that the more disposable income people have, the more they will spend. And that will increase their profits. Plus, workers will be happier because they're earning more and that can only benefit them too. People are distracted at work when they're worried about paying their bills and they're more likely to be late if they're trying to get to work in a car that desperately needs replacing.
But try and tell any right-wing capitalist this and they'll either laugh at you or go berserk and tell you you're communist scum with a few other nasty expressions thrown in for good measure.
They're idiots.
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