|
|
Post by Pacifico on Jun 22, 2023 15:57:27 GMT
Currently inflation is being driven by higher wage demands (especially in the service sector) - we currently have a wage-price spiral.
In 2016 the cheers were very loud when Brexit Tory politicians promised higher wages if foreign workers went home. Now they are desperate to contain wage rises beyond the BoE interest rates and below inflation. So it is spent before it is earned. If the government allowed any higher wage settlements, the resulting wage-price spiral would crash the whole economy. Yet the BoE puts more and more pressure on the "common man" many of whom already hold more than one job. So where is the money? Look into the investment portfolio of those with investments abroad, in banks ( though at least pensions are safe) who could buy up UK gilts but wont, and in paying billions of pounds of interest on the massive borrowing they did during covid. That was 9.8% in April. Multiply that by 12 and you get a spend larger than the cost of the Judiciary. I suggest you look at the breakdown of what is currently driving inflation. |
|
|
|
Post by Pacifico on Jun 22, 2023 16:15:50 GMT
Here is an interesting idea from Lord Hammond who got kicked out of the Tory Party for trying to stop Brexit.. The Government should relax immigration rules to help ease the mortgage crisis gripping Britain, a former chancellor has urged.
Lord Hammond, who led the Treasury under Theresa May, said the Government has to strike a “balance” between the “politically toxic” increase in immigration with the impact of rising mortgage rates.
Relaxing immigration could help deal with record rises in wages across Britain by creating more competition for jobs and lowering workers’ ability to push for pay increases.
Lord Hammond told LBC: “I don’t think The Bank [of England] has got much choice [but to tip the country into recession] unless the Government does something pretty significant intervening in the labour market in a different way.
“I think the Government has regarded any relaxation of migration rules as being politically toxic.
LOL - he still cannot get away from the EU mindset that we should have immigration to keep wages low. Of course this will not apply to him as he is already a multi-millionaire...  |
|
|
|
Post by oracle75 on Jun 23, 2023 7:17:05 GMT
I would ask you please to try to keep Brexit out of the conversation.
Given the enormous numbers of national debt interest plus the relative paucity on the supply side, the EU and Brexit is hardly noticeable.
|
|
|
|
Post by steppenwolf on Jun 23, 2023 7:18:13 GMT
Of course unilateral net zero would be pointless In addressing climate change. Few if anyone would argue otherwise. Which is why almost the entire world is trying to work together to address it. China for example seeks to achieve net zero by 2060 and has c. 40% of the worlds wind and solar power generation. Will the world succeed in coordinated action - who knows. You seem to be advocating a unilateral abandonment of net zero . That’s dumb. I'm not sure if that's addressed to me, but if you seriously believe that China has any interest in "Net Zero" then you're very naive. They've just looked at the various countries who are saying they'll hit net zero by 2050 and added on 10 years - knowing perfectly well that no one will meet the 2050 target. They're just laughing up their sleeve and building more and more coal-fired power stations. It'll never happen because the technology is simply not available and because the costs are astronomical. In any case oil is the greenest fuel available. All the energy in oil came from the Sun and was stored in sugars/hydrocarbons by plants using CO2 from the air. And the combustion of oil now produces nothing but CO2 and water - and the CO2 came from the atmosphere anyway. It can't get greener than that. |
|
