Inflation

[Long slender neck]

what about supermarkets?

[Dunners]

Who has all the covid support money?

As Conkles has said, the amount injected into the economy during Covid was equivalent to £15K per adult. Most of those who received any assistance will have spent it on goods and services because they needed in order to get by. Therefore it will have filtered up through the economy and be found within corporate profit margins, shareholder dividends or private bank accounts of very wealthy individuals.

While this is only one of the contributors to the current inflation problem, it is the one that the Government can immediately seek to address. There are no easy fixes to this, and either the taxation or interest rate rise solutions will have negative impacts. But targeted taxation is the least worst option for the majority of ordinary people. So we don't want to do that.

The other inflationary drivers are more complex, debatable, and in some cases, beyond our control. While they are important, I'm wary of certain political commentators emphasising them too much as it just serves to distract people's attention from what is happening right under their noses.

[Dunners]

what about supermarkets?

Complex. But ultimately, as their power has increased, they exert significant pressure on supply chains and labour to minimise their costs whilst operating in a relatively cosy market environment that means consumers do not have an equivalent power over their prices.

However, to some extent, we do have it within our power to do something about that. if we wanted to, we could choose to shop elsewhere (just about - although our options are becoming more limited). The same cannot be said about utilities, trains and other essential state services.

[Rich Tea Wellin]

In a small show of power, after getting sick of a bag of spinach going from £1 to £1.30 I threw some seeds in the ground and have had my own spinach, picked fresh for the last 7 weeks.

[Dunners]

In a small show of power, after getting sick of a bag of spinach going from £1 to £1.30 I threw some seeds in the ground and have had my own spinach, picked fresh for the last 7 weeks.

Excellent. Seizing the means of production, right there.

[Proposition Joe]

I'm wary of certain political commentators emphasising them too much as it just serves to distract people's attention from what is happening right under their noses.

Aren't they just dutifully performing their role though? Status quo gotta status quo.

[Max Fowler]

So, basically; raising interest rates to stop the flow of money by making the average person struggle and cut back on everything but essentials (disregarding the mental health impacts that makes) instead of limiting the flow of money by stopping the rich and the large corporations spending all their profiteered and stolen covid money, who are, in reality, the real driver of inflation?

Cool

Increasing interest rates is supposed to encourage people to save rather than spend, dampening down the amount of demand for these goods, so that prices fall back.

[Long slender neck]

So the corporates have all the covid money and now they're putting their prices up so they can have even more money?

[Max Fowler]

Who has all the covid support money?

As Conkles has said, the amount injected into the economy during Covid was equivalent to £15K per adult. Most of those who received any assistance will have spent it on goods and services because they needed in order to get by. Therefore it will have filtered up through the economy and be found within corporate profit margins, shareholder dividends or private bank accounts of very wealthy individuals.

While this is only one of the contributors to the current inflation problem, it is the one that the Government can immediately seek to address. There are no easy fixes to this, and either the taxation or interest rate rise solutions will have negative impacts. But targeted taxation is the least worst option for the majority of ordinary people. So we don't want to do that.

The other inflationary drivers are more complex, debatable, and in some cases, beyond our control. While they are important, I'm wary of certain political commentators emphasising them too much as it just serves to distract people's attention from what is happening right under their noses.

So you're basically saying we need to tax the rich?

[Max B Gold]

So the corporates have all the covid money and now they're putting their prices up so they can have even more money?

Not convinced by that argument. The covid money only replaced lost revenue for many businesses.

If we are instead talking about the money the totally corrupt Tories gave to their fraudulent friends like Matts pub owning mate or Michel Mone for unusable PPE etc then that may be different.

[Dunners]

Who has all the covid support money?

As Conkles has said, the amount injected into the economy during Covid was equivalent to £15K per adult. Most of those who received any assistance will have spent it on goods and services because they needed in order to get by. Therefore it will have filtered up through the economy and be found within corporate profit margins, shareholder dividends or private bank accounts of very wealthy individuals.

While this is only one of the contributors to the current inflation problem, it is the one that the Government can immediately seek to address. There are no easy fixes to this, and either the taxation or interest rate rise solutions will have negative impacts. But targeted taxation is the least worst option for the majority of ordinary people. So we don't want to do that.

The other inflationary drivers are more complex, debatable, and in some cases, beyond our control. While they are important, I'm wary of certain political commentators emphasising them too much as it just serves to distract people's attention from what is happening right under their noses.

So you're basically saying we need to tax the rich?

Yes.

But not me, obviously.

[Adz]

Australia are cutting tax for the rich next year!

[Max B Gold]

So, basically; raising interest rates to stop the flow of money by making the average person struggle and cut back on everything but essentials (disregarding the mental health impacts that makes) instead of limiting the flow of money by stopping the rich and the large corporations spending all their profiteered and stolen covid money, who are, in reality, the real driver of inflation?

Cool

Increasing interest rates is supposed to encourage people to save rather than spend, dampening down the amount of demand for these goods, so that prices fall back.

True but the banks are profit taking by holding down the rate of interest they pay but increasing interest rates we pay. Sometimes I suspect the system is rigged against Joe and Joanna public, the ordinary people, the small people.

[BoniO]

Cynic!

[Dunners]

Hmmmm.

[Long slender neck]

mortgages are for poor people

[Currywurst and Chips]

OBR predicts it’ll be under the 2% target within a few months and a year ahead of planned.

Houthis! Your boys have had a shocker

https://www.standard.co.uk/news/politic ... 43533.html

[ComeOnYouOs]

At some point this year, we are almost certain to have a change of government, so I find it hard to see how these forecasts can be accurate.
There may be obstacles along the way that cannot be envisaged at this point in time, such as a war, or a pandemic etc, which further adds to the uncertainty.

[Orient_Man_And_Boy]

mortgages are for poor people

:-)

Or young people- says I as a 66yo, fully-repaid member of society.

[Dunners]

I look forward to the OBR forecasts being absolutely spot on as usual.

Reading back through this thread, many are still clinging onto the narrative that much of the UK economic malaise is due to Brexit. It wont have helped, but it was not the cause.

The UK was recalibrated in the 80s and 90s into a Finance-led economic model. That model ceased to be viable following the 2008 crash. Since then, neither the Tories or Labour have been able to set out an alternative model.

[Dunners]

And living standards beyond 2025 look bleak. Putting aside to what extent the political establishment is complicit in this, even if they were minded to try and improve things, I'm not sure they'd even know how anymore.

[Long slender neck]

The government and opposition are "joining in a conspiracy of silence" about the challenges facing the UK, a think tank says
The Institute for Fiscal Studies, a leading economic research group, was reacting to Wednesday's Budget
The IFS says, just to stop national debt rising, the government needs to raise more than it spends - which it hasn't done since 2001
The combination of debt payments and low growth will mean "eye wateringly tough choices", the think tank warns

Explain this. Who do we owe money and cant we just tell them to f*** off?

[Hoover Attack]

The government and opposition are "joining in a conspiracy of silence" about the challenges facing the UK, a think tank says
The Institute for Fiscal Studies, a leading economic research group, was reacting to Wednesday's Budget
The IFS says, just to stop national debt rising, the government needs to raise more than it spends - which it hasn't done since 2001
The combination of debt payments and low growth will mean "eye wateringly tough choices", the think tank warns

Explain this. Who do we owe money and cant we just tell them to f*** off?

Now we're getting somewhere. Who owns our debts?

[Give it to Jabo]

If (when) we get a new government - I hope we do not continue to be fed lines about The Lockdown and the effects of the war in Ukraine.... (We get it!) The country needs to move forward.