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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

#11

Post by cloutchaser »

kypro wrote: post #9
thoughtstheseus wrote: post #3

Government 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…

85% vs 125%? What are you on about? That's a long way from half. And the USD is the reserve currency of the world, the moment interest rates started to rise everyone moved into USD.

The US is also energy almost independent. The UK has increasing energy prices, and refuses to do anything about it.

Re: UK households set for largest fall in living standards in six decades

#12

Post by cloutchaser »

coob wrote: post #4
thoughtstheseus wrote: post #3

Government 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.

He didn't say overnight. Who said that?

And Sunak just cancelled all fracking that Truss wanted to start. So the UK has basically decided to NOT have any form of cheap energy.

You reap what you sow.

Re: UK households set for largest fall in living standards in six decades

#13

Post by sremani »

kypro wrote: post #9
thoughtstheseus wrote: post #3

Government 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…

No country especially the ones with decelerating economies should compare themselves with USA. The rules apply to US differently. I m not going to list them, Brits should realize this is not 1921.

Re: UK households set for largest fall in living standards in six decades

#14

Post by rsj_hn »

cloutchaser wrote: post #11
kypro wrote: post #9

Earlier quoted context omitted.

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…

85% vs 125%? What are you on about? That's a long way from half. And the USD is the reserve currency of the world, the moment interest rates started to rise everyone moved into USD. The US is also energy almost independent. The UK has increasing energy prices, and refuses to do anything about it.

Moreover, low GDP growth and high interest rates will cause the UK to catch right up :)

Re: UK households set for largest fall in living standards in six decades

#15

Post by thoughtstheseus »

cloutchaser wrote: post #12
coob wrote: post #4

Earlier quoted context omitted.

You can do one of those overnight, the other not so much. Also: spending without revenue creates a deficit, not necessarily inflation.

He didn't say overnight. Who said that? And Sunak just cancelled all fracking that Truss wanted to start. So the UK has basically decided to NOT have any form of cheap energy. You reap what you sow.

Markets price in updated expectations immediately. Maybe they don’t price it right but they do price it.

Re: UK households set for largest fall in living standards in six decades

#16

Post by berkut »

kypro wrote: post #9
thoughtstheseus wrote: post #3

Government 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…

Yes, but the US has the world's effective (for the moment anyway) reserve currency: the UK's not in that position.

Re: UK households set for largest fall in living standards in six decades

#17

Post by cloutchaser »

BoGoToTo wrote: post #5

Don't worry, the Tories will just cut taxes on the rich again and that will fix everything /s

This is such a simplified viewpoint. The UK has never been able to collect more than 39%-40% of GDP in taxes. And that's what the level is at now. Already everyone is paying as much tax as in history. (and the "rich" pay a lot of that, remember you pay £0 tax under £15,000 income per year).

You can try and tax more, but it's highly unlikely to work based on past experience. And in these cases, like with corporation tax, usually the government actually collects more tax revenue at 20% than at 30%. So again, I'd prefer factual taxation, not virtue signalling.

What's the solution here to get more in taxes?

Re: UK households set for largest fall in living standards in six decades

#18

Post by Glawen »

cloutchaser wrote: post #17
BoGoToTo wrote: post #5

Don't worry, the Tories will just cut taxes on the rich again and that will fix everything /s

This is such a simplified viewpoint. The UK has never been able to collect more than 39%-40% of GDP in taxes. And that's what the level is at now. Already everyone is paying as much tax as in history. (and the "rich" pay a lot of that, remember you pay £0 tax under £15,000 income per year). You can try and tax more, but it's highly unlikely to work based on past experience. And in these cases, like with corporation t…

Remember that everyone is paying VAT, so yes little income are also taxed

Re: UK households set for largest fall in living standards in six decades

#19

Post by MichaelCollins »

cloutchaser wrote: post #10
zrtqaf wrote: post #6

Quoted 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 h…

> I don't really understand the perspective your are saying.

He thinks that helping Ukraine defend themselves against a foreign invasion qualifies as "warmongering", obviously he's a Russia-aligned troll. Don't waste too much time trying to unravel his thought processes.

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