Is not limited to Europe it's a global problem, due to a bunch of toothless governments in the pocket of the major corporations.
Re: Inflation
Posted: Tue Jun 27, 2023 12:09 pm
by Adz
Here's one for Australia showing how we're getting screwed
Re: Inflation
Posted: Wed Jun 28, 2023 2:35 pm
by Max B Gold
Rip off Britain. Screwed by the corporates like the mugs we are and no intervention from government.
Proves that there's more than one club in the bag when it comes to reducing inflation. Interest rate hikes to stifle demand when it's a supply side problem is a waste of time and creates misery for millions but probably not Tory scum.
Re: Inflation
Posted: Wed Jun 28, 2023 5:51 pm
by Rich Tea Wellin
I don’t really understand interest and inflation but by companies and therefore shareholders making bucket loads from profiteering, doesn’t that double down on inflation because they have loads of money that they are spending causing prices to go up, which they then benefit from? Whilst we all have to tighten our belts? What’s the benefit for those rich people of inflation going down?
Re: Inflation
Posted: Wed Jun 28, 2023 6:31 pm
by CEB
Interest is what nobody has in any of my posts on *that* thread. Inflation is what has been happening to my BMI since Covid
Re: Inflation
Posted: Wed Jun 28, 2023 7:13 pm
by Rich Tea Wellin
What’s fiscal tightening?
Re: Inflation
Posted: Wed Jun 28, 2023 7:44 pm
by CEB
We might have agreed on a few things but we’re not at that stage yet. Take me out first.
Re: Inflation
Posted: Wed Jun 28, 2023 8:11 pm
by Dunners
OTF Photography Ltd wrote: ↑Wed Jun 28, 2023 5:51 pm
I don’t really understand interest and inflation but by companies and therefore shareholders making bucket loads from profiteering, doesn’t that double down on inflation because they have loads of money that they are spending causing prices to go up, which they then benefit from? Whilst we all have to tighten our belts? What’s the benefit for those rich people of inflation going down?
Here's the gist of how we're all getting f*cked:
The Conservatives have governed during an era of ultra low interest rates.
The have used that period to enact policies that have inflated asset values, and devalued the money you are paid for your labour.
They have not taken advantage of cheap money to invest in public services or infrastructure. They've done the opposite through the earlier austerity policies.
And yet, they have increased the public debt by a ridiculous magnitude. Way, way beyond what they were criticising Labour for in 2010.
So where has that money gone? It's almost as if we've been robbed.
The only time they did spend money on us was during the pandemic. But even then they made sure that their mates profited from that.
And now we're facing inflation. Some of that is caused by factors beyond any domestic government's control. But some of what is causing it is all the money that was injected into the economy as part of support packages during Covid.
There are two options for addressing the latter cause of inflation:
1 - targeted taxation on those who have most accumulated wealth as a result of Covid support (think where that money was spent and who would eventually profit from it). This is a precision tool that would have less impact on the majority of people, but claw a small percentage of wealth back from the richest. The treasury has the power to do this.
2 - interest rate rises. This is a blunt tool, like using a sledgehammer to crack a walnut. It has the most impact on ordinary people, and the richest are the most insulated from it. The Bank of England has the power to do this.
We're doing option 2.
But there's just no other way.
Re: Inflation
Posted: Wed Jun 28, 2023 9:05 pm
by Max Fowler
Would have been worse under a Labour government etc etc.
Re: Inflation
Posted: Wed Jun 28, 2023 9:06 pm
by Max Fowler
OTF Photography Ltd wrote: ↑Wed Jun 28, 2023 5:51 pm
I don’t really understand interest and inflation
Re: Inflation
Posted: Wed Jun 28, 2023 9:31 pm
by Long slender neck
Who has all the covid support money?
Re: Inflation
Posted: Wed Jun 28, 2023 9:38 pm
by Max Fowler
No one really knows.
£15k was handed out for every adult in the UK. Have you and your missus got a spare £30k in the bank? If not, someone else has got your share. I'm guessing it's a rich person sitting on it.
OTF Photography Ltd wrote: ↑Wed Jun 28, 2023 5:51 pm
I don’t really understand interest and inflation but by companies and therefore shareholders making bucket loads from profiteering, doesn’t that double down on inflation because they have loads of money that they are spending causing prices to go up, which they then benefit from? Whilst we all have to tighten our belts? What’s the benefit for those rich people of inflation going down?
Here's the gist of how we're all getting f*cked:
The Conservatives have governed during an era of ultra low interest rates.
The have used that period to enact policies that have inflated asset values, and devalued the money you are paid for your labour.
They have not taken advantage of cheap money to invest in public services or infrastructure. They've done the opposite through the earlier austerity policies.
And yet, they have increased the public debt by a ridiculous magnitude. Way, way beyond what they were criticising Labour for in 2010.
So where has that money gone? It's almost as if we've been robbed.
The only time they did spend money on us was during the pandemic. But even then they made sure that their mates profited from that.
And now we're facing inflation. Some of that is caused by factors beyond any domestic government's control. But some of what is causing it is all the money that was injected into the economy as part of support packages during Covid.
There are two options for addressing the latter cause of inflation:
1 - targeted taxation on those who have most accumulated wealth as a result of Covid support (think where that money was spent and who would eventually profit from it). This is a precision tool that would have less impact on the majority of people, but claw a small percentage of wealth back from the richest. The treasury has the power to do this.
2 - interest rate rises. This is a blunt tool, like using a sledgehammer to crack a walnut. It has the most impact on ordinary people, and the richest are the most insulated from it. The Bank of England has the power to do this.
We're doing option 2.
But there's just no other way.
What about regulating prices?
Re: Inflation
Posted: Thu Jun 29, 2023 4:37 am
by Adz
Great post Dunners. Separating interest rate decisions from government was a master stroke by the polies. The plebs think they're ceding some of their power whereas in reality they created a whipping boy to avoid them making decent policy.
Targeted corporation tax, or windfall tax as it is commonly known is a policy that regulates prices as the money gets recirculated back to the people that need it. That is assuming you have a decent government in charge, and therein lies the problem.
Re: Inflation
Posted: Thu Jun 29, 2023 7:14 am
by Rich Tea Wellin
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
Re: Inflation
Posted: Thu Jun 29, 2023 8:09 am
by Long slender neck
Why isnt competition bringing down prices? Are they conspiring not to?
Re: Inflation
Posted: Thu Jun 29, 2023 8:17 am
by Max B Gold
Adz wrote: ↑Thu Jun 29, 2023 4:37 am
Great post Dunners. Separating interest rate decisions from government was a master stroke by the polies. The plebs think they're ceding some of their power whereas in reality they created a whipping boy to avoid them making decent policy.
Targeted corporation tax, or windfall tax as it is commonly known is a policy that regulates prices as the money gets recirculated back to the people that need it. That is assuming you have a decent government in charge, and therein lies the problem.
The much vaunted independence of the BofE is a myth. The govt can over ride their decisions.
Re: Inflation
Posted: Thu Jun 29, 2023 8:22 am
by Max B Gold
OTF Photography Ltd wrote: ↑Thu Jun 29, 2023 7:14 am
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
Not quite. The excess profits being taken through price increases for goods and services by the vile and greedy capitalist corporations is one of the main drivers. As is the added costs of not being in the single market or customs union as a result of Brexit but you can't mention that as neither of the two main capitalist parties plan to do anything about that.
Re: Inflation
Posted: Thu Jun 29, 2023 8:25 am
by one o in huntingdon
Having just returned from a week in Germany I can say categorically we are being ripped off.
Re: Inflation
Posted: Thu Jun 29, 2023 8:31 am
by Dunners
Long slender neck wrote: ↑Thu Jun 29, 2023 8:09 am
Why isnt competition bringing down prices? Are they conspiring not to?
There is no genuine 'competition' in the privatised industries.
