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Ask HN: What Is Happening in the UK?

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Re: Ask HN: What Is Happening in the UK?

#81

Post by rwmj »

kepler1 wrote: post #48

In the short-term, the factors well described by others above. In the longer-term, is it the slow accumulation of a thousand cuts? -- Brexit -- Stagnating physical output of UK industry (aside from finance + healthcare)? -- Aging population -- Expensive living costs + recent inflation I don't know how much each of these factors has contributed, or if there are other important factors missing above. But for me, having…

Combined with an unfair voting system that means the majority who support several progressive parties cannot outvote a unified minority. The US has the same voting system problem.

Re: Ask HN: What Is Happening in the UK?

#82

Post by ChuckNorris89 »

yuvadam wrote: post #45
a3w wrote: post #34

Earlier quoted context omitted.

A little to coarse, since OP asked about the UK. But Obama already acknowledged that the US will never pay back all their debt, "even if they get 10% GDP increase per year for every single year" if I am not mistaken about that non-verbatim quote.

That quote doesn't surprise me, politicians are stuck between a rock and a hard place without any real options to solve systemic issues. Just like with climate collapse, the solutions that tackle the problems at their core require what is effectively political suicide.

Political suicide sounds far better than the economic and environmental suicide path we've been on for the past few decades in the name of lower costs and more profit.

Re: Ask HN: What Is Happening in the UK?

#83

Post by neximo64 »

You never go into expansionary fiscal policy during periods of inflation. The UK did that, it wasn't so much about the tax cuts, it was that they weren't matched with spending cuts.

Came as a surprise, in a nonscheduled budget & was the opposite of what was expected.

That got the gilts (uk bonds) to drop, and that got the currency shocked as the gilts were force liquidated. I wouldn't read too much into the currency bit, as every other currency is down against the USD, including the euro, yen and aud.

Re: Ask HN: What Is Happening in the UK?

#84

Post by pyb »

tut-urut-utut wrote: post #38
pyb wrote: post #2

In a few words, PM Truss's first economic measures indicate that she's ideologically-driven and has no idea what she's doing. Namely, cutting taxes for the rich in hope that maybe some economic boost will "trickle-down" to the middle class and the poor. This idea is utterly discredited in economic circles. The UK central bank, the BoE, is forced to take measures to counteract what Truss and her government are doing !…

Well, Truss was not elected because of her economic (or any other) competence, but because of her hardliner course against Russia. Rishi Sunak was a better choice in every category, but had two problems: 1. he is not "white" 2. he is not anti-Russian enough EDIT: By "elected" I meant "elected by her own party".

I think the reason Rishi didn't sway Conservative party members is mostly 1., But you're not supposed to say it out loud. Truss was very much a nonentity until last month

Re: Ask HN: What Is Happening in the UK?

#85

Post by chimprich »

ksaxena wrote: post #40
hunglee2 wrote: post #24

In simple terms, the Bank of England and UK Gov are pursuing conflicting economic policies, BoE trying to take money out of circulation through hiking up interest rates, whilst UK Gov is putting money into circulation by proposing massive debt funded tax cuts. The obvious incoherency of this then led to the markets losing confidence in the UK economy, crashing the value of the pound, which in turn makes the planned U…

Between the tax cuts and the energy-price guarantee, the bigger problem is the energy-price guarantee that has been announced by the government. It will put a cap on fuel prices for consumers and the resulting deficit is planned to be funded by the treasury. The deficit is estimated to be more than 100 Billion pounds, and it is planned to be funded by government borrowing. This has resulted in a weaker pound.

> The deficit is estimated to be more than 100 Billion pounds

If any of our US friends were wondering what that is in your currency, it's about 100 billion dollars (following our new PM's economic "experiments").

Re: Ask HN: What Is Happening in the UK?

#86

Post by bigfudge »

tikkabhuna wrote: post #65
cbeach wrote: post #33

Earlier quoted context omitted.

Yes I do pay plenty into my pension. It's not my "privilege" to earn at that level. I was born into an average economic background. I worked really hard at school and university, and then over a period of seventeen years, I worked really hard in responsible jobs. If all people from average backgrounds took the attitude that only "privileged" people get good careers, then unfortunately it would be a self-fulfilling pr…

The poster you replied to was not saying you didn't earn it, they're saying you're in a privileged position now. > having special rights, advantages, or immunities > Similar: wealthy rich affluent prosperous lucky fortunate special

Although worth noting that luck plays a much larger role on most peoples success than is acknowledged. Uk and Us are also much less likely to recognise use role of chance in personal success than wealthy Europeans.

Re: Ask HN: What Is Happening in the UK?

#87

Post by tikkabhuna »

bigfudge wrote: post #64
dan-robertson wrote: post #30

Earlier quoted context omitted.

I don’t understand your logic? It sounds like you’re saying you changed jobs for less money so that your marginal tax rate would be lower even though your net income would be lower. In theory you could also change jobs to something that pays £125k where your marginal tax rate would be back down to 40%, though obviously you’d need to find such a job. You specifically wrote ‘marginal’ so I don’t think you’re confused b…

In what circumstances the does UK have a 60% marginal tax rate. I think the op is confused.

Between £100k and £125k your personal allowance is reduced to £0, so for every £1 you gain, you lose more of that allowance and that works out to a 20% reduction. That on top of the 40% rate equals 60%.

Re: Ask HN: What Is Happening in the UK?

#88

Post by notahacker »

tut-urut-utut wrote: post #38
pyb wrote: post #2

In a few words, PM Truss's first economic measures indicate that she's ideologically-driven and has no idea what she's doing. Namely, cutting taxes for the rich in hope that maybe some economic boost will "trickle-down" to the middle class and the poor. This idea is utterly discredited in economic circles. The UK central bank, the BoE, is forced to take measures to counteract what Truss and her government are doing !…

Well, Truss was not elected because of her economic (or any other) competence, but because of her hardliner course against Russia. Rishi Sunak was a better choice in every category, but had two problems: 1. he is not "white" 2. he is not anti-Russian enough EDIT: By "elected" I meant "elected by her own party".

She was mainly elected because of her promises to cut tax, versus Rishi's promises to stabilise things and cut services where necessary

The latter course of action wouldn't have been wildly popular with voters (even those outside the 100k party members that made the selection who are a lot more impressed by Thatcherite postures than the average person), but it wouldn't have sparked the present response from forex and financial markets.

Re: Ask HN: What Is Happening in the UK?

#89

Post by defrost »

tut-urut-utut wrote: post #38
pyb wrote: post #2

In a few words, PM Truss's first economic measures indicate that she's ideologically-driven and has no idea what she's doing. Namely, cutting taxes for the rich in hope that maybe some economic boost will "trickle-down" to the middle class and the poor. This idea is utterly discredited in economic circles. The UK central bank, the BoE, is forced to take measures to counteract what Truss and her government are doing !…

Well, Truss was not elected because of her economic (or any other) competence, but because of her hardliner course against Russia. Rishi Sunak was a better choice in every category, but had two problems: 1. he is not "white" 2. he is not anti-Russian enough EDIT: By "elected" I meant "elected by her own party".

It'd be fairer to point out that neither Truss nor Sunak were "elected" (or not) in any normal democratic sense.

The former PM resigned due to scandal and Truss is a drop in replacement "elected" by a tiny tiny number of elites isolated from the public at large.

Re: Ask HN: What Is Happening in the UK?

#90

Post by ihateolives »

cbeach wrote: post #23
fnimick wrote: post #17

Earlier quoted context omitted.

> the wealthiest 1% are paying 28% of income tax receipts - and this percentage has increased over the last decade Without any information on how wealth inequality has increased, and the 1% have more income and assets now than they did last decade, this is misleading at best. If the top 1% are paying more taxes but are also making more money, this hardly seems unfair.

So you think 1% of people shouldering 28% of the cost of public services is fair?

Is it only about fairness though? In US (don't know about UK) the top 1% held 32% of wealth last year. Is that fair?
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