| Can someone explain basic economics please 18:46 - Dec 15 with 4401 views | gtsb1966 |
Interest rates go up and people lose their houses and end up in debt and need to claim benefits to afford rent. Interest rates go up and people have to rein their spending in so unemployment goes up as businesses fail and more people have to claim benefits. Recession hits so consumer confidence plummets causing a deeper recession and more unemployment etc etc. Inflation though comes down which is considered a success. I'm baffled so would be grateful if someone could explain how it all works. Thanks. |  | | |  |
| Can someone explain basic economics please on 18:56 - Dec 15 with 3097 views | SuperKieranMcKenna |
It’s just about balance, ie not raising them too severely in which to trigger wide scale repos. However, if they don’t raise at all sterling will continue to slide against the $ and add further pressure to the energy crisis (and other commodities) which are traded in USD.
The end of the low interest era has also burst the bubble in stocks particularly tech firms on the NASDAQ. Bumpy times ahead. |  | | |
| Can someone explain basic economics please on 18:57 - Dec 15 with 3094 views | BanksterDebtSlave |
You're expendable. |  |
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| Can someone explain basic economics please on 19:03 - Dec 15 with 3060 views | gtsb1966 |
| Can someone explain basic economics please on 18:57 - Dec 15 by BanksterDebtSlave |
You're expendable. |
Not so much me but the way tractorboyjames explains it there are a lot of people who are. Can see this summer being a summer of unrest unfortunately. | | | |
| Can someone explain basic economics please on 19:06 - Dec 15 with 3009 views | HARRY10 |
House catches fire, people lose their possessions fire brigade a forced into a lot of work.
Why do were have house fires ? | | | |
| Can someone explain basic economics please on 19:09 - Dec 15 with 3013 views | jeera |
And not everyone suffers through high interest rates of course.
If one has a few million in the bank then those high rates can be quite rewarding. |  |
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| Can someone explain basic economics please on 19:24 - Dec 15 with 2957 views | SuperKieranMcKenna |
| Can someone explain basic economics please on 19:09 - Dec 15 by jeera |
And not everyone suffers through high interest rates of course.
If one has a few million in the bank then those high rates can be quite rewarding. |
At the risk of being pedantic- with inflation in double figures for most of this year they won’t do too well out of 3.5pc base rate, I guess that’s why the HNW don’t keep too much in liquid assets! If you think of capital held by a firm eg insurance, banks they’ll need to look for much better returns just to stop their capital being eroded. [Post edited 15 Dec 2022 19:26]
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| Can someone explain basic economics please on 19:34 - Dec 15 with 2909 views | HARRY10 |
| Can someone explain basic economics please on 19:24 - Dec 15 by SuperKieranMcKenna |
At the risk of being pedantic- with inflation in double figures for most of this year they won’t do too well out of 3.5pc base rate, I guess that’s why the HNW don’t keep too much in liquid assets! If you think of capital held by a firm eg insurance, banks they’ll need to look for much better returns just to stop their capital being eroded. [Post edited 15 Dec 2022 19:26]
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"they’ll need to look for much better returns just to stop their capital being eroded. "
rather what those naughty nurses are doing, only with wages rather than capital | | | |
| Can someone explain basic economics please on 19:50 - Dec 15 with 2893 views | sotd78 |
Very few people do actually lose their houses. That is usually the last thing they give up on. People will rein in their spending; that is kind of what this government is hoping. That will reduce demand and then in turn reduce inflation. The big bug bear at present is all the external costs we cannot control: gas, oil, electricity and food. It's why food inflation is so high. Our economy at present is close to full employment. The real fuel for higher permanent inflation is wages. Hence why the Govt is bearing down on all the public sector and anything else they can influence. I work in a charity sector; we got 3% and thought ourselves lucky. |  |
| Blue shirts/white shorts - sotd78 |
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| Can someone explain basic economics please on 19:53 - Dec 15 with 2875 views | BanksterDebtSlave |
| Can someone explain basic economics please on 19:03 - Dec 15 by gtsb1966 |
Not so much me but the way tractorboyjames explains it there are a lot of people who are. Can see this summer being a summer of unrest unfortunately. |
We are all expendable. Believe! | |
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| Can someone explain basic economics please on 20:14 - Dec 15 with 2793 views | Big_Jase |
| Can someone explain basic economics please on 19:50 - Dec 15 by sotd78 |
Very few people do actually lose their houses. That is usually the last thing they give up on. People will rein in their spending; that is kind of what this government is hoping. That will reduce demand and then in turn reduce inflation. The big bug bear at present is all the external costs we cannot control: gas, oil, electricity and food. It's why food inflation is so high. Our economy at present is close to full employment. The real fuel for higher permanent inflation is wages. Hence why the Govt is bearing down on all the public sector and anything else they can influence. I work in a charity sector; we got 3% and thought ourselves lucky. |
You got a real terms paycut and considered yourself lucky? Why would you consider yourself getting poorer lucky? |  |
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| Can someone explain basic economics please on 20:22 - Dec 15 with 2760 views | sotd78 |
| Can someone explain basic economics please on 20:14 - Dec 15 by Big_Jase |
You got a real terms paycut and considered yourself lucky? Why would you consider yourself getting poorer lucky? |
Because that is what my employers could afford. So short of leaving and going elsewhere I think we were lucky. The simple fact is that this country as a whole is poorer - Covid and Ukraine have by definition made us as a collective poorer. Everyone either equally tightens their belts or a few people with clout get a bigger slice of a shrinking cake. That's the economics. | |
| Blue shirts/white shorts - sotd78 |
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| Can someone explain basic economics please on 20:26 - Dec 15 with 2737 views | gtsb1966 |
| Can someone explain basic economics please on 20:22 - Dec 15 by sotd78 |
Because that is what my employers could afford. So short of leaving and going elsewhere I think we were lucky. The simple fact is that this country as a whole is poorer - Covid and Ukraine have by definition made us as a collective poorer. Everyone either equally tightens their belts or a few people with clout get a bigger slice of a shrinking cake. That's the economics. |
I agree that covid have made us poorer but the government's waste of billions of pounds could've paid for the nurses. So a few people made billions out of covid at the expense of thousands of others. [Post edited 15 Dec 2022 20:29]
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| Can someone explain basic economics please on 20:51 - Dec 15 with 2657 views | factual_blue |
It's all to do with Albanians ruining our economy. |  |
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| Can someone explain basic economics please on 21:09 - Dec 15 with 2598 views | gtsb1966 |
| Can someone explain basic economics please on 20:51 - Dec 15 by factual_blue |
It's all to do with Albanians ruining our economy. |
Different subject grandad. | | | |
| Can someone explain basic economics please on 21:33 - Dec 15 with 2560 views | Swansea_Blue |
| Can someone explain basic economics please on 20:26 - Dec 15 by gtsb1966 |
I agree that covid have made us poorer but the government's waste of billions of pounds could've paid for the nurses. So a few people made billions out of covid at the expense of thousands of others. [Post edited 15 Dec 2022 20:29]
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It depends on what you’re looking at. Global economic activity returned to pre-Covid levels in 2021 and the OECD average is on track as of Covid hadn’t happened. Little old Britain is struggling though. Which suggests it might not all be about Covid, but rather a string of disastrous political decisions that have cost us well over £100BN in the last couple of years (including the corruption linked to Covid you mention, but that’s just the start of it). [Post edited 15 Dec 2022 21:34]
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| Can someone explain basic economics please on 21:41 - Dec 15 with 2528 views | factual_blue |
| Can someone explain basic economics please on 21:09 - Dec 15 by gtsb1966 |
Different subject grandad. |
So is ageism. | |
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| Can someone explain basic economics please on 21:43 - Dec 15 with 2513 views | gtsb1966 |
| Can someone explain basic economics please on 21:41 - Dec 15 by factual_blue |
So is ageism. |
Start a different thread then | | | |
| Can someone explain basic economics please on 22:33 - Dec 15 with 2388 views | noggin |
| Can someone explain basic economics please on 19:50 - Dec 15 by sotd78 |
Very few people do actually lose their houses. That is usually the last thing they give up on. People will rein in their spending; that is kind of what this government is hoping. That will reduce demand and then in turn reduce inflation. The big bug bear at present is all the external costs we cannot control: gas, oil, electricity and food. It's why food inflation is so high. Our economy at present is close to full employment. The real fuel for higher permanent inflation is wages. Hence why the Govt is bearing down on all the public sector and anything else they can influence. I work in a charity sector; we got 3% and thought ourselves lucky. |
"Hence why the Govt is bearing down on all the public sector and anything else they can influence."
They were doing that for years before either covid or Ukraine. |  |
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| Can someone explain basic economics please on 23:00 - Dec 15 with 2328 views | ElderGrizzly |
Interest rates won’t work against inflation in the traditional sense. The Bank of England have admitted that.
They’ve admitted it will cause a recession which will then bring down inflation. But causing untold harm to millions at the same time. Yet their obsession is with the 2% inflation target.
Inflation naturally could be in the negative by November this year, even without their raising of rates. |  | | |
| Can someone explain basic economics please on 23:20 - Dec 15 with 2284 views | Pinewoodblue |
| Can someone explain basic economics please on 23:00 - Dec 15 by ElderGrizzly |
Interest rates won’t work against inflation in the traditional sense. The Bank of England have admitted that.
They’ve admitted it will cause a recession which will then bring down inflation. But causing untold harm to millions at the same time. Yet their obsession is with the 2% inflation target.
Inflation naturally could be in the negative by November this year, even without their raising of rates. |
The problem is everytime to US raise their rate, they raised 0.5% earlier this week, both UK & EU follow.
Doesn't the treasury set the long term target of 2% PA? |  |
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| Can someone explain basic economics please on 23:41 - Dec 15 with 2245 views | jaykay |
| Can someone explain basic economics please on 20:22 - Dec 15 by sotd78 |
Because that is what my employers could afford. So short of leaving and going elsewhere I think we were lucky. The simple fact is that this country as a whole is poorer - Covid and Ukraine have by definition made us as a collective poorer. Everyone either equally tightens their belts or a few people with clout get a bigger slice of a shrinking cake. That's the economics. |
before covid and ukraine i thought the tory brexiteers were telling us the reasons wages were low because of foreigners forcing wages down. now it all down to covid and putin.
its everybody's fault apart from those in charge. |  |
| forensic experts say footers and spruces fingerprints were not found at the scene after the weekends rows |
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| Can someone explain basic economics please on 23:51 - Dec 15 with 2233 views | eireblue |
Yes.
The First Law of Economics: For every economic theory there exists an equal and opposite economic theory.
The Second Law of Economics. Both are wrong. |  | | |
| Can someone explain basic economics please on 00:00 - Dec 16 with 2217 views | MattinLondon |
| Can someone explain basic economics please on 19:53 - Dec 15 by BanksterDebtSlave |
We are all expendable. Believe! |
When we realise that we are all expendable is when we lose our childhood innocence.
That nothing really matters or makes sense.
And as we begin the death March into work.
Stress and unhappiness our only constant perk. |  | | |
| Can someone explain basic economics please on 00:10 - Dec 16 with 2202 views | ArnoldMoorhen |
| Can someone explain basic economics please on 20:22 - Dec 15 by sotd78 |
Because that is what my employers could afford. So short of leaving and going elsewhere I think we were lucky. The simple fact is that this country as a whole is poorer - Covid and Ukraine have by definition made us as a collective poorer. Everyone either equally tightens their belts or a few people with clout get a bigger slice of a shrinking cake. That's the economics. |
You're right, of course. We are poorer.
But you miss the biggest factor of all. "We" "chose" to leave the biggest free market in the world, one on which our entire economy has been focused (taken for granted) for nearly thirty years.
And we had the biggest blagger, puffer, shirker, shirt untucker, hair ruffler, waffler and don't do my homeworker in charge.
So no plans were made to ease that transition.
Yes, other unknowables occurred.
But it has mostly been self-inflicted, and we are significantly poorer.
Edit: I hadn't notice phone autocorrect "shirker" to "Shirley" [Post edited 16 Dec 2022 9:57]
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| Can someone explain basic economics please on 06:49 - Dec 16 with 1996 views | TractorWood |
| Can someone explain basic economics please on 20:14 - Dec 15 by Big_Jase |
You got a real terms paycut and considered yourself lucky? Why would you consider yourself getting poorer lucky? |
I assume because that is the reality of the economic backdrop. Many employers will be giving people nothing from henceforth due to the choppy times ahead. People can leave if they don't like it in reality.
That's how the private sector works largely. People hunker down and don't leave when things get dicey. Hence why these strikes are raising eyebrows when 5% backdated payrises are being rejected. Horses for courses though. [Post edited 16 Dec 2022 6:50]
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