I can see what you are saying, but governments cant restart economies.....if it goes on too long, many businesses may not exist.
And governments arent really creating money out of nothing, things wont simply be the same.
Rishi Sunak
- Thread starter fillyboy
- Start date
I can see what you are saying, but governments cant restart economies.....if it goes on too long, many businesses may not exist.
And governments arent really creating money out of nothing, things wont simply be the same.
Things haven't been the same for many people since the financial crash. A bigger hit on those people and as I said, they know where the rich people live. Unless you think they will be up for another 20 years of austerity.
Whilst QE is helpful, it's not been helpful to the right people, money has to be parachuted in to people who will spend it, the retail sector was on the verge of wipeout before all this, what will it be like by the end of the year. Fiscal rules no longer apply, the rule book has been torn up, I see anarchy as far more likely than a 30's type depression, people are different now.
das Wirtschaftswunder.
The Marshall Plan,
Interestingly, UK received more than twice as much from the Marshall Plan as did Germany.
That must explain why the Morris Minor and the Armstrong-Siddely conquered the world, instead of the VW Beetle and the Mercedes.
That must explain why the Morris Minor and the Armstrong-Siddely conquered the world, instead of the VW Beetle and the Mercedes.
You have to hand it to those Gerries, they know their industry and engineering. Must be their work ethic - like the Jap's.
E
EddieM
The UK didn't benefit from the 1953 London Agreement AFAIK.
- Joined
- 1 Apr 2016
- Messages
- 13,606
- Reaction score
- 550
- Country
Grandstanding appeals to the people I am making my comments about, calling them socialists. It is pointing it out in terms they understand best.
The problem the UK faces is that we have had 10 years of reducing the state and relying more on private consumption. So now the corrective action has to be all that more aggressive.
We are facing a dramtic fall in Aggregate Demand, as the economy slows down and in some areas just stops - our economic output falls. So as demand falls so do peoples incomes as no one is buying. The effect of this is compounded when we have a small state sector because the Gov employs less people, they can only prop up so much demand.
Normally the automatic stabilisers an economy has to stop the crash is benefits payments - but we have seen them cut by about 35bn.
Its customary for neo liberal polices to focus on the supply side - cut regulation, improve efficieny of markets etc but these policies will not help you when AD crashes - you then need fiscal policies or spending.
The current climate is an opportunity to reshape the economy.
So we are trading consumption today for less consumption tomorrow as once this is over and the Government debt balloons they will use that as justification for further cuts which then will make any future pandemic crisis even worse.
The problem the UK faces is that we have had 10 years of reducing the state and relying more on private consumption. So now the corrective action has to be all that more aggressive.
We are facing a dramtic fall in Aggregate Demand, as the economy slows down and in some areas just stops - our economic output falls. So as demand falls so do peoples incomes as no one is buying. The effect of this is compounded when we have a small state sector because the Gov employs less people, they can only prop up so much demand.
Normally the automatic stabilisers an economy has to stop the crash is benefits payments - but we have seen them cut by about 35bn.
Its customary for neo liberal polices to focus on the supply side - cut regulation, improve efficieny of markets etc but these policies will not help you when AD crashes - you then need fiscal policies or spending.
The current climate is an opportunity to reshape the economy.
So we are trading consumption today for less consumption tomorrow as once this is over and the Government debt balloons they will use that as justification for further cuts which then will make any future pandemic crisis even worse.
E
EddieM
Doesn't answer the question, what would you do? Hint... time machines don't exist.
Due to Tory policy.
Free market, neo liberal policies.
Brexit was a part of the plan -remove EU controls so the wealthy can deregulate.
This crisis will be so much worse because of these policies which have stripped out services in this country to bare bones.
- Joined
- 1 Apr 2016
- Messages
- 13,606
- Reaction score
- 550
- Country
Now tell me what would you do?
Currently there is no vision of what happens after this is over. The viewpoint is that once this is over we can get back to normal.
The problem is restoring the economy to "normal" requires confidence. So with all this continuing uncertainty about their own finances and the wider economy, households won’t spend and businesses won’t invest even when this passes as they will require direction from Government. So what plans will there be post recovery? Rishi has been trying to slow the descent / decline which means that unless he is there to reflate the economy we will have another decade of sluggish growth.
So to prop up AD I would suggest implementing a form of UBI which would cost less than the current plans. A UBI policy can live beyond these short term policies. GDP is going to fall and any attempts to slow it will just be money wasted as at the end of it people may still be sacked so after spending all those billions people will still end up claiming as business do not have demand.
I would expand Gov recruitment - put forward plans for infrastructure investment. So it will be a Government expansion lead recovery and response. So the private sector will contract but with a stronger public sector the economy will be more resilient to future pandemics.
To add Rishi mentioned that he would like to put self employed in the same tax treatment as employed which is underhand. A better proposal is using this to implement Land Value Tax.
B
Bodd
I'm regretting declaring my cash jobs and my scrap. Not worked it out yet but feel I may miss out
- Joined
- 1 Apr 2016
- Messages
- 13,606
- Reaction score
- 550
- Country
B
Bodd
Well in China a vector of transmission was cash.
I'm lost?
Similar threads
- Deleted member 221031
- General Discussion
