UK households set for largest fall in living standards in six decades
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Re: UK households set for largest fall in living standards in six decades
#2Re: UK households set for largest fall in living standards in six decades
#3Government spending without a credible increase in government revenue creates inflation. It’s astounding how many people don’t see this. You can’t print money/credit and expect to maintain purchasing power. The UK needs to supply low cost energy, not print money to buy energy.
Re: UK households set for largest fall in living standards in six decades
#4Government spending without a credible increase in government revenue creates inflation. It’s astounding how many people don’t see this. You can’t print money/credit and expect to maintain purchasing power. The UK needs to supply low cost energy, not print money to buy energy.
You can do one of those overnight, the other not so much.
Also: spending without revenue creates a deficit, not necessarily inflation.
Re: UK households set for largest fall in living standards in six decades
#5Don't worry, the Tories will just cut taxes on the rich again and that will fix everything /s
Re: UK households set for largest fall in living standards in six decades
#6No post body was provided.
Re: UK households set for largest fall in living standards in six decades
#7Don't worry, the Tories will just cut taxes on the rich again and that will fix everything /s
Hey man, if people would stop buying their mocha lattes, internet, phones, computers, and netflix, they could save so much money that they could upgrade their carboard box in the park to a carboard box mansion! /s
Re: UK households set for largest fall in living standards in six decades
#8Government spending without a credible increase in government revenue creates inflation. It’s astounding how many people don’t see this. You can’t print money/credit and expect to maintain purchasing power. The UK needs to supply low cost energy, not print money to buy energy.
You can do one of those overnight, the other not so much. Also: spending without revenue creates a deficit, not necessarily inflation.
It does tend to create inflationary pressures via an increase in the borrowing cost of government (often expressed as the government bond rate), which in turn makes the entire cost of many other forms of borrowing more expensive, which in turn changes the expectation of what a dollar or Euro or pound is worth today as compared to what it will be worth in a year's time.
Re: UK households set for largest fall in living standards in six decades
#9Government spending without a credible increase in government revenue creates inflation. It’s astounding how many people don’t see this. You can’t print money/credit and expect to maintain purchasing power. The UK needs to supply low cost energy, not print money to buy energy.
Would be funny if you're an American. The UK has almost half the debt-to-GDP of the US thanks to years of austerity.
> The UK needs to supply low cost energy, not print money to buy energy.
Sure, but you can't do that over night and not temporarily backstopping consumers until that supply comes online risks bankrupting businesses and putting even more strain on the economy. So long as it's temporary it's probably the best thing we can realistically do.
Re: UK households set for largest fall in living standards in six decades
#10Quoted post unavailable.
I don't really understand the perspective your are saying. The UK was basically the ONLY country that helped Ukraine straight away when the war started, it was the UK that dragged the US along, and Germany is still dragging its feet on arms supplies. And I'm not saying that as someone who thinks Ukraine should be supported at all costs, but what the UK did was admirable.
If you mean Brexit, yes, there is some blame here, but it's one of the MANY issues the UK has been kicking down the road.
The UK has almost no manufacturing, its all financial services and service industries. There is less and less local energy production, and the cost is way more than the EU. Yet all attempts at starting fracking is failing.
On top of that 2008 then covid bought massive money printing.
At some point, you just can't fight physics. I'm sorry. There is so much wrong with the UK economy now it's insane. You can't print money to make cheap energy, while interest rates rise on 100%+ debt, while everyone moves into US dollars for the safe haven. Something has to give.
The UK either makes some tough choices now, on par with what Thatcher did, which will be extremely painful, or this slow decline will continue.