Nearly 2 decades of unusually low interest rates hid the fact that wages were stagnant in that time, as soon as rates went up people realised they had no money to spend on the economy.
Actually Blair’s Labour is the primary cause because they removed housing costs from the inflation figures. At the same time they built virtually no council houses meaning there was no competition for rents. This was because they were using borrowing to drive growth. When inflation is displayed as low then wage demands are low because people know it’s not worth striking or changing jobs for a small increase. Hence wages being low and housing cost going up. Unfortunately this only runs for so long before it all blows up as we saw in 2008. In addition they also tripled immigration in their first year to increase demand and relaxed the affordability rules so people could borrow more. 30 year mortgages became popular leading to people being able to borrow more and house prices going skywards. Tories have not addressed s this either and have added to it with help to buy. The only way out is a major council house building program to gradually increase competition, building tons of private housing won’t work. These morons in power can’t see that so they are bleating about building 1.5 million houses all the while planning for 2.5 million immigrants. It’s gerrymandering and concreting over the south east, but they will never be held to account.
@@skyblazeeternoThe minimum wage has created a lot of this stagnation. Most sector wages are stagnating such that the minimum wage will catch up. Many families who have one or two minimum wage earners need the state to make up their income level to support their family needs. This means the tax payer is subsidising businesses. That is not the way it should be.
@@davideyres955 Broadly right, except that the 14 years of Conservative governance has increased borrowing and immigration much more than labour. They are both guilty of not allowing for adequate building. The only winners being, well what a surprise, the wealthy asset rich.
The wealth divide in Britain is booming....those that can afford housing, cars, foreign holidays, luxury products/ services....and those who exhaust their meagre funds on rent, council tax, utilities (including net zero subsidies), and ridiculously expensive public transport.
The pain of net growth?.lf we invested in renewable and insulation of our houes it would cut down demand for fossil fuels and increas the output of cheaper solar,wind and wave power that is much cheaper and not subject to the whims of such events as war and the greed.the country's proportion of renewable energy is already higher than expected but imagine how much better if the tories had not effectively banned on shore wind.lf they had invested in renewalables and not left it in the hand of the markets we would have been much nearer our climate targets and who knows maybe market leaders.and don't give me the Trump and lardy arses excuse of what happens when it's not sunny or windy.we could have invested in wave power (you know the waves that are always operating)and that investment never happened because of the short term view of if we can't make an immediate profit then it's not going to happen.thats exactly why you need goverment investment.even the victorians realised that you sometimes needed goverment investment and had public infrastructure projects such as the London underground. Y
Why do we need to work towards net zero? UK produces 0.8% of the world’s green house gases (China 31%). UK can do absolutely nothing to influence climate change. The rest of the world does not care what we do. The total cost of renewables is far more than fossil fuels. If renewables are cheaper why do they need subsidy? If tidal power was cheaper it would be built. On cold winter nights with no wind, renewables produce nothing!
A thrift based economy would be great for Britain and the environment.We don't need to be always spending on new things or eat in overpriced restaurants.Paying for new cars and overseas travel on credit is hurting the ordinary person's pocket with base rates being normalized after a long era of QE. The impact of higher wages must feed through into higher consumer prices but this may feed into inflation. A non virtuos circle but not committing to unnecessary expenditure is unavoidable.
My family left the UK in the 70's due to the poor job market and standard of living. All that's really changed in those 50 years is that the political / financial elites have further cemented their strangle hold over the public. Fact is, that a desperate voter is easier to manipulate and distract from the day to day schinanigans of those in power.
My family never earned much. So, couldn't afford to waste money. For over thirty years we worked, paid off a mortgage 15 years early on a small property (still live in it) Used the savings to invest, pension funds, another property (paid off not by tenants) No social life or consumption to mention. But now we can do what we like. Afford anything we like. When we like. Millionaires living in an ex council house. Old cars, I work as a part time gardener. Here's the thing. I remember the news of 1988 saying back then, that the economic situation was going to end badly. The governments of the day and beyond, kept moving the goal posts to keep people spending, because that was the countries main industry - consumption. I did wonder when or if the days of reckoning would really happen. And now they have. It's about personal spending habits. I know a few people who over their lifetimes, have earned ten times what I have. But have nothing but a big house mortgaged to the limit, debts, an uncertain job situation and next to no savings. How much blame can be placed upon our leaders? Not much actually. They did give out warnings and advice. Those were given no heed by the masses. All anyone had to do was observe their own situation and ask if it was sustainable? If it wasn't and they had the tools to deal with it. It's their own fault if they ignored the warning signs. This critique does not apply to anyone who never stood a chance to start with. The problem is that today almost no one stands a chance. The stable door was shut after the horse had bolted and the horse was taken into hiding by those with the money.
@@ricf9592 You're making the same lazy arguement of "the reason kids these days can't get on the housing ladder is netflix and avocados". The problems in the economy are far more complex than that, when rents are higher than mortgages there is no opportunity to do the same as you did. Instead you end up paying off someone else's mortgage, without ever having enough expendable income left to save for a deposit. I'm sure you feel like you got were you are because you're so much better at managing your finances, but the truth is you're pulling up the ladder behind you.
@Celadonfae totally agree, all these boomers keep saying that. The same old things. They are so delusional, still not realising how much more easier they had it! And will never admit it.
1. Struggling to live outside of essentials, essentials are now putting people under financial threat its that expensive. 2. Not enough money to add to savings for retirement/pension. 3. No expendable income. 4. People are likely dipping into pension/retirement savings to get by or cutting back on essentials like food and heating. What do people have to look forward to then? They are broke now and will die broke. Everyone has given up, there isnt really much in life to look forward to is there? The government know the game is up, they are riding the train as long as they can whilst eaking out every last pound from the economy, stamping their little feet and throwing tantrums when things dont work the way they want. People are the economy and the government are not accountable or responsible for the harm they are inflicting on society. Who is going to explain to the kids joining the workforce that they will need to donate 70-80% of their earnings, not being able to retire until they are 70+ (They wont live that long) to keep everyone elses healthcare and pensions alive, oh... thats right, they dont teach kids about real life in school. Criminal inter-generational self-sabotage and they all need to be jailed.
100%! Children and young adults should be taught far more about the three things that define the so-called free West: economics, media and politics. Free markets, free speech and free elections - none of which are actually free. But the powers don't want the masses to know. The system is rigged for their benefit. As the late, Great George Carlin said, It's a big club, and you ain't in it!
Ironically, they can generate as much money as they need. They just refuse to. Where's the real Labour Party? Where's the Change we voted for? No more neoliberalism!
Richard, You make it sound like a choice. I think that is a mistake. The public arent spending money because, quite simply, they dont have it. The direct outcome of fifteen years of continuing, spurious and counterproductive austerity which has removed any disposable income they once had.
Most people I know have *already spent* their savings over the last decade of declining wages and increasing cost of living. The basic essentials cost more than most folks' incomes.
If only we had a whole load of billionaires (more than ever and rising by the day)to tax to allow the investment dearly needed.because all these mega rich are telling us that everyone of them is going g to leave and they are totally right because they wouldn't lie about that.
@alinaqirizvi1441 yeah... I don't think interest rates are actually *that* high... just compared to the crazy low run we had for years. It's that people are now massively leveraged due to silly house prices and easy credit. As always, the banks win.
There are many issues, but these are a few significant factors for us peasants: Wage growth - it has been stagnant in real terms for over a decade. We work longer hours for less too. Asset Inflation - wages against asset inflation has been way off. Asset inflation fueled by cheap money and QE. Government Debt: Sold all the decent assets to the rich (gas, water, electricity, rail etc.). All the money disappeared and rather than having a fat wallet full of cash, we are left with mismanaged use of the cash and astronomical borrowing. The biggest scam ever for the citizens of this country! Tax: working and middle classes smashed by taxes. Rather than taxing the rich, that are massively adverse to contributing to society and hoard cash. There's more, but I don't want to write an essay..... What does the above mean? Growing inequality and no social mobility. Great 👍 Just hope you are born into the right family....thats the only real way to be wealthy now. And do give me the one in a million luck story of someone getting rich, ut doesnt happen to 99.9999% of people that work hard and are rewarded with longer hours and less pay with rising costs everywhere
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"Consumers" are not saving, but they are losing their jobs, wages are falling, the cost of living is rising, and cheap credit is drying up. A consumer credit bubble is about to burst.
Government doesn't actually "create" growth. It enables it. Growth occurs when value is created and there is demand for that value. 1. Its impossible to get anything over the line and completed in the UK, so there is no value created.
It's not just lack of confidence, many consumers are worried. Even the discount supermarkets have raised prices not to mention council tax rises. Cutting back household spending is a necessity.
Yeah council tax has gone up ridiculous amount. In Spain their equivalent "council tax" is about 500 euro, but in the UK it's £2000+ for a terraced house in a poor area of the country. Absolutely ridiculous, the poor areas will get poorer.
But we can't possibly have an effective windfall tax on the energy companies that have been ripping us off left right amd centre.lt might that their billionaire major shareholder wouldn't get the return on their assets and wouldn't be able to afford their next yacht.luckily we now have a labour government.however starmer and reeves does not want to do anything to upset those billionaires and now Trump is sticking his greedy nose in. D Io
If you investigate the backgrounds of the Bank of England's ratesetters (the so-called 'Monetary Policy Committee'), you'll find that very few of them are 'bankers'.
The main issue is rent and property prices. The 2nd is gas and council tax bills. After those, the average person struggles for money. Something REALLY needs to be done to bring all of those costs down!
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I had saved up £15,000 and went down to 24 hours because I did not want to work until 2am. I was OK but now I`m using about £250 a month of my savings. When I was on full time before Labour I could save £500 a month,
If you work in front line public services, then this is true. Wages are only just paying for the day to day, and saving any left overs is just a dream for most,
@ well, honeybunch, capitalism does not have YOU or I in mind when it comes to prosperity and abundance. It’s set up so these oligarchs always get away with everything and anything- looka tvTrump, a convicted felon and is he in jail? No, he is not in jail. Jail is for poor people and people of color, silly.
My baby has just turned one and has now started pretty much full time at Nursery. Even with the Government’s 15 hours free nursery care, we are absolutely crippled financially. After mortgage, electricity and gas, council tax and water, plus nursery bills, there’s nothing left. Barely enough for a take-away once a fortnight
Have been there, feel for you. Ours has just turned 3, has gotten easier. Not sure we can afford another child though. They'll be moaning about birthrate any minute now and how there won't be enough people to keep the economy going in the near future. 😒
The housing crisis and high costs in the UK is robbing consumers of their purchasing power. Unfortunately the housing crisis has never been resolved for decades and will continue to impact the economy negatively, as well as the morale of the people.
Anyone would have thought that the powers that be don't want to solve the housing crisis and have deliberately kept supply low to boost up the prices.that can't be possible because who would benifit in having the prices high.?
My spending is now reduced to self-rationed electricity, service charge, Council Tax, and as little as I can get away with for vehicle expenses. Etc. No discretionary spending at all. Clothes tend to be the free cast offs which are not good enough for charity shops to actually sell! Food involves first investigating the reduced section. And even then I eat a lot of supermarket brand baked beans! No doubt thatI am exactly the sort of person the politicians would be happy enough to see having a premature death. I am not going be the beginning of the green shoots of growth. I am sure that I am not alone in being in this position.
@Spartan-jg4bf I agree totally... But the question being why hasn't the north sea oil gone into the treasury.. I mean where is it going.. There is no accountability at all
Gary’s Economics has covered this in a very detailed way in his video yesterday. The economics measure is broken, interest rates will not fix the problem, it’s a bandaid 🩹. Your opinions are absolutely valid, the problem you have stated is spot on, and the economy must have its interest rates dropped but the redistribution of wealth in this country HAS to happen. If it doesn’t and Starmer/Reeves continue their hatchet job of attacks on the poorest of our people the economy will go into recession and could well end up on the world bank asking for a bailout. But maybe that’s the idea, maybe that’s what Starmer and his Davos buddies want? 😢
Council tax has almost doubled in that period in some areas. Cost of heating has doubled if not more in 4 years. Yet wages only up a few %. People can't just magically get more money to spend. Until those costs come down a lot, or wages go up a lot, economy will continue to be flat.
@@user-qd5lo6oi8n Our council tax has been rising slowly but surely each year, but has certainly not doubled, rents on the other hand have almost doubled in the last 10 years, my wages have been much the same for the last decade, luckily it is not a minimum wage job, I don't think wages can go up as thr costs will only get passed onto us the workers, which means everything else will go up again.
Younger consumers are also not concerned with brands and more interested in cutting out harmful goods to the environment and buying 2nd hand and away from mass manufacturing.
The problem is that RR and the entire Labour Party are ineffective. The era of competent politicians is long gone. I distinctly recall when George Osborne became Chancellor over a decade ago. He and the Conservative Party used the same tactics-threatening the public with austerity and budget cuts while blaming the previous Labour government for a £10 billion deficit. You can easily find footage on TH-cam of George Osborne, alongside David Cameron, attributing the country’s poor state to their predecessors. What followed is now history, with Brexit and a series of deceptions from an incompetent UK government. The current shadow cabinet lacks anyone who appears even remotely capable. The situation has turned into a farce.
Maybe politicians should be paid based on the outcomes of how competent they have been in goverment.lardy arse johnson would owe us millions in negative bonuses due to his absolute medal winning incompetence.lf he had thought there was going to be a cost to his incompetence maybe he would not have applied for the job of crime minister and how much better would our country have been.
I IMAGINE that we are planning to spend less because in spite of any increase in income (and lots of people really haven't had that) our money isnt going as far. On top of this, some costs are escalating way beyond inflation. For example, my last dental inspection and hygiene treatment (at a private dentist because there is nno NHS availability locally) cost £130 six months ago. Today it was £160. A 23% increase in 6 months. The only material used were a pair of surgical gloves, some water, a mouth wash, and a length of dental floss. I fail to see where an addition of £30 is justified. But these kinds of cost increases are everywhere, at the petrol station, in the supermarkets, travel passes........ If inflation is said to be falling, the way it is measured needs to be reviewed.
It will be the usual things - the invisible overheads ones. Energy costs, maintenance contract costs on the equipment, insurance costs, staff PAYE etc costs, Buildings rate/rents.
I have money to spend if I wanted to, but as I’m getting older I realise that I don’t need to. Not interested in consumerism or capitalism. This is what has divided us. The rich have thrived while the rest of us are just considered as disposable. Look at Sainsbury’s, laying off 3,000 people and blaming the NI raise that hasn’t happened yet while posting record profits. They laid off staff last year, the year before and the one before that, but nothing in the press about that. Interesting to see that another supermarket chain is looking to rehire these staff.
I don’t think people are saving, the fact everything has become more expensive including council tax for zero more services is the major factor. Labour have realised there policies are ruining the country hence the Heathrow runway which is in complete opposition to the Net zero cobblers.
Well said. Exactly my situation (saving, relatively well paid, worried about services, planning no large purchases). I despair about the new government, but despised the previous one.
My consumer confidence has been declining since 2016. Almost 10 years since and I am loathe to spend any amount unless absolutely necessary for survival. Holidays are a no. Luxuries are a no. Dining out or take away are too expensive and so is food I cook for myself. My (private landlord) rent is far far too high a portion of my monthly budget. Everything I earn goes to feeding a parasite or desperately trying to save enough to pull the leech from me. My largest outgoing these days is vinegar so I can pickle more food to make it last. If I had a garden and a greenhouse I’d withdraw even further from the economy but as my landlord is tight fisted I have an “easily maintained” garden (tarmac).
Get yourself some big plastic garden tubs - you fill them full of soil and they give you enough space to grow most things in them They are basically semiportable raised beds
Reeves is worried about inflation. The fact the most recent inflation figures were better than expected was the only thing that saved her in terms of the bond market going crazy.
The country by country happiness index rated Finland number 1 in 2024. Why? Reportedly, trust. Trust that both government and government institutions are transparent, competent, not corrupt and are working in their interests. I leave you to be the judge.
Population of Finland is about the same as GreaterLondon area! and the UK is basically a London/SE economy only with the rest of the nation as a 3rd world area draining the high output of the economy in the S.Eeast - a slight exageration maybe. So the "UK" could be like Finland if you simply got rid of all the UK population outside of the SE.
Britains industrial capacity has shrunk, and continues to shrink year on year, since the 1970s. Poor management, belligerent unions, short term outlook of the city of London, profligate spending of incompetent politicians, importing unskilled labour to keep down labour costs. Nothing will change whilst we have politicians that are bound by ideology and are not pragmatic. The U.K. does not stand up for itself, it is beholden to the EU and USA. I’ve watched since the 1970s, company after company being bought by foreign competitors, run down, asset stripped and closed. It continues today. Until we get politicians that will shake up civil service, the city, put the British people first, nothing will change.
The economy here is so difficult. I am self-employed and have been for 5 years, but questioning right now if that is sustainable, or if we will be better off if I give this up and go and get a shit job again. 😢 Really not what I want to do, but my business has shrank this last year… whilst everything else has got more expensive, and what I earn does not cover anywhere near what it used to. Food is stupidly expensive. My question, because I understand exactly what you are saying Richard, about government spending. My question is, what does that do to future tax? If our population is shrinking (and we know the average women is having less children or doing it later… speaking as a woman in my mid thirties who doesn’t have kids but is happily married) then as a population shrinks but the deficit of our government is higher, what will that do to future generations tax, to our pensions etc etc? Does that just mean higher tax in future? Because I agree that we really need growth, but I also fear that bad spending (because we know government spending is never streamlined well to go only where it needs to go, and there’s always ridiculous waste) will make the future harder. Am I missing something here? I’m genuinely trying to understand how a deficit affects governments and then how it affects individuals just trying to live their lives. Finally, I agree with all the comments above. Why is Council Tax being raised at such a difficult time? Why are the government letting energy companies charge us so much to heat our homes and the government not capping it (we pay more than double the next country!)? Why are supermarkets able to get away with such ridiculous mark ups and with throwing away wasting food that doesn’t get bought?
It's like they're trying to make the population feel less secure on purpose, so they become compliant drones. Add the upcoming SEZs and Freeports to the mix and you have to wonder...
I had to quit work 5 years early due to disability (which did not qualify for any benefit). This completely drained my savings but finally I recently qualified for a state pension. As we have a demonstrably ageist government, I anticipate further attacks on my income. Of course I plan to spend less!
Work out what the compound effect of yearly 5% council tax increases actually means in the long run (let alone some councils attempting to ask for more than 5%). At the same time the services they offer are in constant decline.
My council is trying to increase by more than 40% because of their own incompetence & poor budgeting. Why should we have to pay more for their mistakes? They wasted the money on rebuilding the city centre when no one asked for it. The city is no better for it.
All the talk about "levelling up" different areas, and all it did was waste public money. Those people need investigating. If things like this continue the country will be ruined and everyone competent will leave.
Levelling up was never an actual thing but a pr stunt by the tories to con the general public that they cared.the video of soonackered saying he wanted the money to go to the well off areas instead of the poorer.add to that the torys controlled who got what and it was obvious just a corrupt con trick sold to the hard of thinking by the master of snake oil sales men lardy arse boris.
I Listened to Gary Stevens, comments about how economists are trained. He suggests that their philosophy is flawed. Is this the reason why the government is so stuck in its ways?
Richard said people can’t save money they can’t spend money because they don’t have the money. Things are very expensive for what they are. It’s the government who have got their choices wrong and is playing to see if you don’t put money into an economy, how can economy grow, if you don’t have money in the pockets of the people then they can’t go and spend that money into the economy it’s a straight forward. Correlation Thatcher came in in 79 we had an economy where you could get a job at a drop of a hat she came in. She couldn’t get a job we had millions millions on the door. She wrecked the economy of the mining Thatcher wrecked a a travelling workforce in this country. She got saved twice once by a war with Argentina the second time the tax revenue from North Sea boil, but she actually did nothing for the economy, except sell everything off now 45 years later look at the position, we are in Thames water for starters. The government body that allows these types of institutions to put their water prices up or down up mainly I’ve been allowed to put the bills by 60%. Not because they are doing a good job. I’m allowed people to have water in a good manner, because they fucked it up and the previous just let all the infrastructure in this country deteriorate to where dump sewerage into a rivers and Seas and then Reeves is going after the long notice hanging fruit, the disabled of this country instead of the non-dorms because the non-dorms had given her a headache because they lobbied her and she gave up so now she goes for the lowest hanging fruit, do you member Sunak Owen, 5 million and having a non-Dom status 5 million I think the number is about I don’t know but there is a hell of non-Dom status in this country Sunak owed 5 million you do the math the governments we’ve had over the past 45 years, not had the interests of the general public of this country in mind they’ve had the wealthy interests in mind to the point where we are today wet austerities is something that now is used to beat people the general public over the head with haven’t got any money that is the biggest lie of all what you have the Bank of England once you’ve got your own bank you’ve got money. Richard explains it better, but people don’t seem to want to get it and this is the most mind numbingly depressing part of all this they would rather see the country go down the toilet, then bring the country back to a resemblance of what it used to be able to do and no one then we Gotta do it right now, is build the infrastructure of this country back to what it should be, and that everything privatised brought back in the house everything
I cannot for the life of me understand what this govt is trying to do! All I know is we Brits are fed up with constantly being punished with austerity and welfare cuts: 15 years of this from the Tories - and now Labour?!! Meanwhile big companies are allowed to rip us off while getting non-means tested subsidies...Why should it always be us and never the rich who are made to pay for crises created by them? 😡😡😡😡😡
The pubic overwhelmingly backed austerity for the first five years according to opinion polls and those who warned it was self-defeating, inhibited recovery and callous in its pernicious effects on the public realm were ignored or portrayed as flat earthers. The public swallowed economically illiterate lies from the Tories about government spending being the same as a household, bogus comparisons with Greece, fixing the roof while the sun shines, and even Labour in 2015 under Miliband would have continued with so called austerity lite had it won the election. Voters cannot support a policy and Thatcherism broadly and complain about its effects but this is what they have been doing since 1979 with every government in power. Public squalor and private affluence is the result.
You would probably consider me rich. I paid a huge whack of tax last year. The problem for the government is as I have almost paid off my mortgage and have semi retired at that point my work commitment becomes relatively discretionary and if the government tries to take even more than the 60% of my income it currently taxes at my highest marginal rate I will simply cut back on the amount of work I do.
I agree but then there will be less money coming into the exchequer so the government will have to raise taxes elsewhere or borrow more. Maybe a wealth tax or higher taxes on the rich.
Cutting interest rates? Yes. Also targeted government investment in infrastructure and key services. Yet my concern is that lower interest rates will drive up house prices unless the government invests in quality social housing and caps private rents.
capping anything doesn't work, it just reduces supply resulting in an eventual price increase (the energy price cap is a good example). Rental prices in Buenos Aires have dropped dramatically. How? By making it easier for people to become landlords, thereby increasing the supply and competition for tenants. Not difficult.
The idea that consumers are rational or respond to the type of data you suggest is complete fantasy. They are driven by a far less sophisticated decision making process barely extending beyond their next paycheck, or their last credit card bill.
Since covid there has been a fundamental shift in attitude towards debt and consumption and life in general. Politicians have reinforced the fact that citizens have to take control of their own lives because Lie/Con governments have shafted us for too long. I'm certainly not going to revert to being a consumer ever again. I only buy what I NEED - not what the government wants me to buy. I will walk and use my bus pass before ever driving an EV. Adverts don't work with me.
The problem is, the longer that cost of living is an issue, the more people will get used to not being consumers. The economy will struggle in the UK for a while longer yet. No one wants to visit or move to the UK now also because of high crime, and immigration has diluted British culture.
Maybe people don't want to come to the uk because of the lack of public services combined with the rasism of so many who seem to blame their problems on immigrants rather than the corrupt politicians and the wealthy donors whose greed is disgusting.
Only low paid jobs being created and housing costs way too expensive. We need a National Building program from non profit builders making insulated houses that will only ever be rented!
Due to the high increase in cost of living, ie gas/electric doubled in 3 years, food bills doubled in 3 years. What do they expect and also as pensioner on very small private pension I have lost WFP.
You're forgotten the massive price rises of the water companies who want you to pay more because their infrastructure is a mess because they have sucked out billions that should have been invested to pay foreign investors and greedy top management.thanks thachter for once again really screwing our country.
If one rich person has all the money, they will only buy one pair of trousers, If you spread the money among more people, they will buy lots of pairs of trousers. *Spread the money: improve the whole economy.* This week Reeves said, "We have been listening to the concerns that have been raised by the non-dom community." Even my Window Cleaner knows that neoliberalism has failed. Tax the rich.
Or for a different viewpoint, the people buying all the trousers form China will contribute nowt to the UK economy other than to make our balance of payments worse, while the "rich" will remodel their bathrooms etc and provide valuable income etc to the tradesmen in the local economy by doing so.
But the government didn't cut government salary. Why? If the government is low skilled then it is worth cutting their pay in half. I think that's fair.
I spend less because my VOTE doesn't mean anything any more - Labour puts corporate interests over public interests - eg privatising NHS / corporate welfare / not addressing fossil fuels - so I have made a commitment to NOT buy anything new (bar essentials) - I refuse to support a "growth" economy which is an unjust economy (i.e. consumer activism).
In a society where the outlook is of a less capable health service, an aggressive attitude towards taxation, soaring energy costs designed to drive net zero, and a dwindling likelihood of a state pension ….i don’t know why people are planning to spend less - it’s got me stumped
Inflation is high we have the highest energy costs certainly in Europe and living in Hampshire the council want to raise tax by 15% to pay for social care. Everything else car insurance, petrol,food is going up.
@@Spartan-jg4bf - except according to recent data and reports from organizations like the International Renewable Energy Agency (IRENA), green energy, particularly solar and wind power, is now generally cheaper than fossil fuels in most parts of the world, with the cost of renewable energy technologies rapidly dropping due to technological advancements; making it the most cost-effective option for new electricity generation.
@sososoprano1 I'm afraid that you don't understand how power generation works. Solar and wind are not available on demand. If its not sunny and the wind is not blowing you have to pay for very expensive back up generation. It happened in the UK a few weeks ago. The simple fact is that the two largest economies in the world the US and China, are still primarily powered by fossil fuels. Most of the goods and services that you use orignate from those countries
15%?! Count yourself lucky, in areas of the north they want to increase by 40-50%!! These are poor areas where people already struggle, because councils wasted money on big contracted projects to try to bring in money.
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Remember during COVID, businesses got major financial help, but households did not. Now that Covid's finished, prices went up hugely and wages went down. That measley 5% wage increase for some public sector doesn't mean that people can go out to spend. On top of that it's us tax payers that are footing the bill to the likes of Michelle Mone etc., so it's not surprising that people aren't spending as they should. The recovery from financial suppression is going to take a lot longer.
The measly 5% that the nurses received was a slap in the face to them and because they didn't raise the basic tax allowances it was actually only 4% after the extra tax was taken.another example of the contempt the tories have for those nhs workers who put their lives at risk and even saved the life of that scumbag lardy arse boris.
I'm dropping out of capitalism as an act of rebellion. I'm doing everything in my power to stick with the basics: food, clothing and housing. Pass it on.
We already pay huge taxes and recieve nothing in return so more government spending will only increase debt, crash the pound, and drive up interest rates. I can offer no solutions, and predict higher taxes and more cuts. Anyone who can should leave .
Richard thank you as always. However I fear there is not a simplistic answer. My recipe would be replace Starmer & Reeves, possibly with Torsten Bell (Swansea MP). Then have a coherent housing policy with the objective to reduce house prices and rents. This might mean reactivating compulsory purchase powers of local authorities to buy agricultural land peripheral to existing development. A huge pre-fabricated housing initiative might also help here. Raising the tax threshold for the basic rate would also free up spending money. In short we should have a range of policies aimed at growth and reducing income equality which cannot be tackled without reducing housing costs. Another idea worth pursuing is the implementation of an online tax to balance competition thereby giving shops a chance to compete. This also would be a tremendous lift to our wellbeing as our town centres are restored to their former vibrance.
Plus, electricity and gas prices which are over inflated for business and private users. There needs to be a reset and now of what you are talking about and the item I have highlighted!
All correct but house prices and food prices would not budge and that would still leave a lot of people in a difficult situation. Corporations would still be able to increase their profits and squeeze people's finances. I think the problem is deep rooted and it starts with identifying it : it's speculation in all its many forms. Kill speculation and consumers will feel safer. Interest rates will naturally fall and people will want to spend. Slowly, the government will feel in control and start spending on social care, transport, education etc... But wealthy people and corporations LOVE speculation, they LOVE free rides (= low taxation, tax free products etc...) and feeling safe : it's just that for them, it comes with a different agenda.
It's just so tragic. Like the challenges of climate. Prosperity lies at our feet but we can't finance an initiative to pick it up and we've been told if we touch it we'll go blind
We have to stop this silly idea that we need to keep growing the economy before we can deliver for the majority. Growth through spending is a thing of the past and the only solution is to share more equally.
Aye, it seems simple budgeting of what is the most effective use of what you have has been lost on most governments. It's like the friend who is always going for more certificates to get a better job, but ends up going further in debit. At some point you have to say "enough".
@quintessenceSL The problem is how can you budget when your population grows by up a million in 12 months? You can't budget if you don't know how many people that budget is for?
@classicalfan-u8u my idea is a points based immigration system. Carrot and stick approach to getting long term unemployed working, and scaling back public services until the debt has been dramatically reduced
Sorry, but foranyone like my colleagues and i who've just lost our jobs 'Rachel from accounts' could hardly expect us to want to spend. Does the government have any idea how few jobs that are currently available?
No, it's a secret they don't want to show. There are no jobs and AI and robots replacing more and more .. and work for most doesn't pay enough to have more than an existence... I don't get where they think the spending is coming from?
Since "austerity" I've found myself consuming less and less purely by way of not engaging. I distinctly remember Gordon Brown (not a fan BTW) saying how we'd spend our way out of recession, which was sensible. Then watching in disbelief all the media and the country went, nah, we'll try our damnedest to make the recession permanent, a wierd awakening to narrative for me. So now we have it, "austerity" forever. In this environment, its not so much can't, but wont be a "good consumer". I'd rather just not bother to engage with a society bent on decine.
Excellent!! There was a cost to Covid. The Bank of England cannot expect to claw back that cost within a few years (if ever) - particularly following the impact of the Ukraine invasion on food and energy prices. It's like lending money to a business and expecting it back the next day. 🙄 QE is something you can do instantly. The corresponding QT should happen over a decade or more (if ever), as the health of the economy allows.
It's not difficult to stop buying fast fashion, temu style straight-to-landfill products on a whim, and prioritise buying things that will last that you really need, and especially those that benefit your community and the country at large
I can speak to this personally. In Nov 2020 I locked into a 5 year fixed rate, and right now I'm overpaying as much as I can on that and saving a lot of the rest knowing I'm due to remortgage under much higher rates this year. If rates were lower, I'd be a lot more comfortable spending
Wrong from the start. Interest rates are not too high. It’s only very recently, since the financial crisis of 2007/2008 that they fell to record lows. They were not normal and were largely due to misguided government intervention. The Bank of Englands own records show that The average BoE interest rate over the past 100 years is around 8%. Since 1694 the average has been around 6%.
You didn't go into the diminishing real value of wages. When I left engineering in 1991 (well, it was closing!), I was earning more in real terms with no degree than my son now earns with a masters in engineering. You cannot look at weak spending power without looking at how wage differentials have eroded average spending power, just at the time that inflated asset prices have made essential needs (housing, health, transport, etc.) more expensive.
The idea that Reeves cancels the independence of the bank of England and forces it to cut rates is a really terrible one. Two things will happen: government borrowing costs will skyrocket and the pound will fall even further. In any case low rates have got us where we are with unaffordable housing (except for oligarchs hiding their money in empty Chelsea flats) and no hope for the young ever to save enough to get on the housing ladder.
I agree entirely with you, but there's one more issue - A lot of people are being told their jobs and even careers will be made obsolete by AI within half a decade.
I agree, but this is more due to long term policies than recent events and interest. 35 years ago, the mean wage to housing was 2x - 4x. Even during a period with 14% interest, most still had agency within their expected means - and housing prices fell. Today, housing affordability is way beyond mean wage (8 - 12x ?). Also, this no longer affects the “free housing market”, since ever more is owned by fewer. Wage increases can not carry this financialisation, neither can the expectations of “personal entrepreneurship”. Steve Keen has pointed to how government spending decreases during financial growth, as our politicians still believe “the state is a household”. Well, real households can’t “issue currency” - other than engaging in grey or black market labour, since even time is lacking for most employees. Housing is the single connection to capital and debt for most wagetakers. Further growth cannot “fix” this asymmetry, where asset values drive work, beyond human capabilities. I have to hand it to Stiglitz et al, they were right 25 years ago. Few of us listened - I didn’t either. That said, I really appreciate your work, mr. Murphy…! 😊
I look forward to these videos every morning before I start work proper. They act as a stark reminder of the economic realities we face, but more importantly, give potential solutions to them. Keep going Richard ...
@@nawaz345 Not tax and spend from government, just spend. Governments of fiat currencies can create money, they do not have to balance the books with taxation.
@@oddaspereven5485 yeah I think that’s all fine, but we do operate in a system of global capital (not saying that is right or wrong, it’s just fact) so how do you stop a run on the pound and/or rampant inflation if you endlessly print money? Also we did that by way of QE and it just led to increasing inequality and asset bubble inflation. No society has printed its way out of economic crisis. The US also did QE but it managed higher growth as it has vibrant tech sector. Something we don’t have and will never have (nor would this twat even want presumably). So it’s just more of the same - spend money recklessly on bullshit and hope it works.
i am not sure bored is the right description of a working class that has endured wage stagnation job insecurity high costs that have left them living from pay check to pay check no savings no dream of being able to save up a deposit for a house plus that saving would not be enough by the time they thought they might have enough ; inequality since the early 80's have left a huge gap between those who have and those that dont this is not a problem just in this country but all the western world capitalism is not working for the average if there is one worker anymore
You mean to expect them to have realistic goals and promises is realistic? Their masters, the Super Rich will get richer so they will be doing their job whatever they say to the public. #getPRdone
Producing growth is not easy.however putting obvious barriers to achieving growth like adopting tory fiscal policies and taking small businesses is just making it far more difficult than necessary.
I'm saving as hard as I possibly can. The UK is rubbish really, everything is overpriced & we have a system that would rather you paid rent for years rather than give you a mortgage in many instances.
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"We will have to substitute with home made products" - Um, just one problem with that. We should we reinvent the wheel? And home grown products will be more expensive due to manufacturing costs and labour at home. Where are we going to build all these factories? NIMBYs already say UK has no space and far right groups say jobs should go to natives, but natives demand much higher pay than their counterparts in Asia. And so the cost of home grown products will be too high compared to the affordable products from Asia. There is one solution, use maximum automation in new factories, don't create jobs for humans, instead take an automate first approach. Build a high tech robot making industry, this will create high paying jobs for people with the aptitude for STEM work. (Everyone else will have to find other jobs - they won't be high paying.)
ER no. It’s not because of interest rates. It’s because of taxes. The Laffer Curve in operation, like never before. And don’t pretend you wish it wasn’t happening. You never saw a tax increase you didn’t like.
Nearly 2 decades of unusually low interest rates hid the fact that wages were stagnant in that time, as soon as rates went up people realised they had no money to spend on the economy.
Actually Blair’s Labour is the primary cause because they removed housing costs from the inflation figures. At the same time they built virtually no council houses meaning there was no competition for rents. This was because they were using borrowing to drive growth. When inflation is displayed as low then wage demands are low because people know it’s not worth striking or changing jobs for a small increase. Hence wages being low and housing cost going up. Unfortunately this only runs for so long before it all blows up as we saw in 2008.
In addition they also tripled immigration in their first year to increase demand and relaxed the affordability rules so people could borrow more. 30 year mortgages became popular leading to people being able to borrow more and house prices going skywards.
Tories have not addressed s this either and have added to it with help to buy. The only way out is a major council house building program to gradually increase competition, building tons of private housing won’t work. These morons in power can’t see that so they are bleating about building 1.5 million houses all the while planning for 2.5 million immigrants. It’s gerrymandering and concreting over the south east, but they will never be held to account.
Not just wages but also benefits
@@skyblazeeternoThe minimum wage has created a lot of this stagnation. Most sector wages are stagnating such that the minimum wage will catch up. Many families who have one or two minimum wage earners need the state to make up their income level to support their family needs. This means the tax payer is subsidising businesses. That is not the way it should be.
@@davideyres955 Broadly right, except that the 14 years of Conservative governance has increased borrowing and immigration much more than labour. They are both guilty of not allowing for adequate building. The only winners being, well what a surprise, the wealthy asset rich.
@@arthurdixon5890 The minimum wage has created a lot of this stagnation. - really? So we should just let "market forces" dictate wage levels?
The wealth divide in Britain is booming....those that can afford housing, cars, foreign holidays, luxury products/ services....and those who exhaust their meagre funds on rent, council tax, utilities (including net zero subsidies), and ridiculously expensive public transport.
Agreed. Except we do need to work towards net zero and we will all feel the pain of that.
The pain of net growth?.lf we invested in renewable and insulation of our houes it would cut down demand for fossil fuels and increas the output of cheaper solar,wind and wave power that is much cheaper and not subject to the whims of such events as war and the greed.the country's proportion of renewable energy is already higher than expected but imagine how much better if the tories had not effectively banned on shore wind.lf they had invested in renewalables and not left it in the hand of the markets we would have been much nearer our climate targets and who knows maybe market leaders.and don't give me the Trump and lardy arses excuse of what happens when it's not sunny or windy.we could have invested in wave power (you know the waves that are always operating)and that investment never happened because of the short term view of if we can't make an immediate profit then it's not going to happen.thats exactly why you need goverment investment.even the victorians realised that you sometimes needed goverment investment and had public infrastructure projects such as the London underground.
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Why do we need to work towards net zero? UK produces 0.8% of the world’s green house gases (China 31%). UK can do absolutely nothing to influence climate change. The rest of the world does not care what we do. The total cost of renewables is far more than fossil fuels. If renewables are cheaper why do they need subsidy? If tidal power was cheaper it would be built. On cold winter nights with no wind, renewables produce nothing!
house prices are literally going to double as well. If you dont own a home now, you're never going to own one.
A thrift based economy would be great for Britain and the environment.We don't need to be always spending on new things or eat in overpriced restaurants.Paying for new cars and overseas travel on credit is hurting the ordinary person's pocket with base rates being normalized after a long era of QE. The impact of higher wages must feed through into higher consumer prices but this may feed into inflation. A non virtuos circle but not committing to unnecessary expenditure is unavoidable.
My family left the UK in the 70's due to the poor job market and standard of living. All that's really changed in those 50 years is that the political / financial elites have further cemented their strangle hold over the public. Fact is, that a desperate voter is easier to manipulate and distract from the day to day schinanigans of those in power.
Where did you relocate?
My family never earned much. So, couldn't afford to waste money. For over thirty years we worked, paid off a mortgage 15 years early on a small property (still live in it) Used the savings to invest, pension funds, another property (paid off not by tenants) No social life or consumption to mention. But now we can do what we like. Afford anything we like. When we like. Millionaires living in an ex council house. Old cars, I work as a part time gardener.
Here's the thing. I remember the news of 1988 saying back then, that the economic situation was going to end badly. The governments of the day and beyond, kept moving the goal posts to keep people spending, because that was the countries main industry - consumption. I did wonder when or if the days of reckoning would really happen. And now they have.
It's about personal spending habits. I know a few people who over their lifetimes, have earned ten times what I have. But have nothing but a big house mortgaged to the limit, debts, an uncertain job situation and next to no savings.
How much blame can be placed upon our leaders? Not much actually. They did give out warnings and advice. Those were given no heed by the masses. All anyone had to do was observe their own situation and ask if it was sustainable? If it wasn't and they had the tools to deal with it. It's their own fault if they ignored the warning signs. This critique does not apply to anyone who never stood a chance to start with. The problem is that today almost no one stands a chance. The stable door was shut after the horse had bolted and the horse was taken into hiding by those with the money.
@@ricf9592 You're making the same lazy arguement of "the reason kids these days can't get on the housing ladder is netflix and avocados".
The problems in the economy are far more complex than that, when rents are higher than mortgages there is no opportunity to do the same as you did. Instead you end up paying off someone else's mortgage, without ever having enough expendable income left to save for a deposit.
I'm sure you feel like you got were you are because you're so much better at managing your finances, but the truth is you're pulling up the ladder behind you.
@@CeladonfaeI wouldn't bother wasting anymore time
@Celadonfae totally agree, all these boomers keep saying that. The same old things. They are so delusional, still not realising how much more easier they had it!
And will never admit it.
1. Struggling to live outside of essentials, essentials are now putting people under financial threat its that expensive.
2. Not enough money to add to savings for retirement/pension.
3. No expendable income.
4. People are likely dipping into pension/retirement savings to get by or cutting back on essentials like food and heating.
What do people have to look forward to then? They are broke now and will die broke. Everyone has given up, there isnt really much in life to look forward to is there?
The government know the game is up, they are riding the train as long as they can whilst eaking out every last pound from the economy, stamping their little feet and throwing tantrums when things dont work the way they want. People are the economy and the government are not accountable or responsible for the harm they are inflicting on society. Who is going to explain to the kids joining the workforce that they will need to donate 70-80% of their earnings, not being able to retire until they are 70+ (They wont live that long) to keep everyone elses healthcare and pensions alive, oh... thats right, they dont teach kids about real life in school. Criminal inter-generational self-sabotage and they all need to be jailed.
100%! Children and young adults should be taught far more about the three things that define the so-called free West: economics, media and politics. Free markets, free speech and free elections - none of which are actually free. But the powers don't want the masses to know. The system is rigged for their benefit. As the late, Great George Carlin said, It's a big club, and you ain't in it!
Tldr people have given up.
Ironically, they can generate as much money as they need. They just refuse to. Where's the real Labour Party? Where's the Change we voted for? No more neoliberalism!
Richard, You make it sound like a choice. I think that is a mistake. The public arent spending money because, quite simply, they dont have it. The direct outcome of fifteen years of continuing, spurious and counterproductive austerity which has removed any disposable income they once had.
Most people I know have *already spent* their savings over the last decade of declining wages and increasing cost of living. The basic essentials cost more than most folks' incomes.
100% agree
If only we had a whole load of billionaires (more than ever and rising by the day)to tax to allow the investment dearly needed.because all these mega rich are telling us that everyone of them is going g to leave and they are totally right because they wouldn't lie about that.
He said they don't have it and the reason is because they spend all their money on housing and other debt because the interest rate is too high
@alinaqirizvi1441 yeah... I don't think interest rates are actually *that* high... just compared to the crazy low run we had for years. It's that people are now massively leveraged due to silly house prices and easy credit. As always, the banks win.
There are many issues, but these are a few significant factors for us peasants:
Wage growth - it has been stagnant in real terms for over a decade. We work longer hours for less too.
Asset Inflation - wages against asset inflation has been way off. Asset inflation fueled by cheap money and QE.
Government Debt: Sold all the decent assets to the rich (gas, water, electricity, rail etc.). All the money disappeared and rather than having a fat wallet full of cash, we are left with mismanaged use of the cash and astronomical borrowing. The biggest scam ever for the citizens of this country!
Tax: working and middle classes smashed by taxes. Rather than taxing the rich, that are massively adverse to contributing to society and hoard cash.
There's more, but I don't want to write an essay.....
What does the above mean?
Growing inequality and no social mobility.
Great 👍
Just hope you are born into the right family....thats the only real way to be wealthy now.
And do give me the one in a million luck story of someone getting rich, ut doesnt happen to 99.9999% of people that work hard and are rewarded with longer hours and less pay with rising costs everywhere
All these issues stem from an economy grappling with uncertainties, including housing problems,foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.
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They are not bored: their discretionary expenditure is constrained by real income decline and they have nothing to spend. This is called poverty.
I agree, they are certainly not bored.
True, the amount of rubbish this guy spews is staggering.
"Consumers" are not saving, but they are losing their jobs, wages are falling, the cost of living is rising, and cheap credit is drying up. A consumer credit bubble is about to burst.
dont forget that their jobs are being shipped to india
Government doesn't actually "create" growth. It enables it. Growth occurs when value is created and there is demand for that value.
1. Its impossible to get anything over the line and completed in the UK, so there is no value created.
It's not just lack of confidence, many consumers are worried. Even the discount supermarkets have raised prices not to mention council tax rises. Cutting back household spending is a necessity.
Yeah council tax has gone up ridiculous amount. In Spain their equivalent "council tax" is about 500 euro, but in the UK it's £2000+ for a terraced house in a poor area of the country. Absolutely ridiculous, the poor areas will get poorer.
Waiting for the Council Tax bill. I think it will fully absorb the 25/6 projected pension increase. Everything else is going up in price.
Discount supermarkets can't raise prices otherwise they just become supermarkets.
👏
I'm not spending less. I'm paying more for sodding electricity (while cutting back on my electric usage). 🙄
But we can't possibly have an effective windfall tax on the energy companies that have been ripping us off left right amd centre.lt might that their billionaire major shareholder wouldn't get the return on their assets and wouldn't be able to afford their next yacht.luckily we now have a labour government.however starmer and reeves does not want to do anything to upset those billionaires and now Trump is sticking his greedy nose in.
D
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we are not worried, we don't have money left
I can believe putting a bunch of bankers in charge of interest rates hasn't worked out.
There used to be regulations but a compliant bunch of puppets removed them. Gordon Brown springs to mind
If you investigate the backgrounds of the Bank of England's ratesetters (the so-called 'Monetary Policy Committee'), you'll find that very few of them are 'bankers'.
The main issue is rent and property prices. The 2nd is gas and council tax bills. After those, the average person struggles for money. Something REALLY needs to be done to bring all of those costs down!
Probably help if we didn't import 900,000 extra people in last year and 800,000 the year before.
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Congratulations!! The scriptures clearly
states there's going a transference of the
riches of the heathen to the righteous.God
keep blessings you
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I would suggest most people are not in a position to save. They are spending most of their income on living day to day.
I had saved up £15,000 and went down to 24 hours because I did not want to work until 2am. I was OK but now I`m using about £250 a month of my savings. When I was on full time before Labour I could save £500 a month,
If you work in front line public services, then this is true. Wages are only just paying for the day to day, and saving any left overs is just a dream for most,
@@damianbutterworth2434If you want to pick the financial flowers, you have to put in the hours
You can't grow an economy when you don't make anything. Perhaps the government thinks delivering more pizzas counts as growth.
I dont think I'm bored as a consumer, but I am fed up with having to pay more for less
What home made products? Thatcher took care of that.
We’re broke af
We are one of the richest countries in the world ever.
Distribution is poor.
@ well, honeybunch, capitalism does not have YOU or I in mind when it comes to prosperity and abundance. It’s set up so these oligarchs always get away with everything and anything- looka tvTrump, a convicted felon and is he in jail? No, he is not in jail.
Jail is for poor people and people of color, silly.
@@julianshepherd2038 No we aren't, we have a lot of rich people but very little wealth per capita
My baby has just turned one and has now started pretty much full time at Nursery. Even with the Government’s 15 hours free nursery care, we are absolutely crippled financially. After mortgage, electricity and gas, council tax and water, plus nursery bills, there’s nothing left. Barely enough for a take-away once a fortnight
Have been there, feel for you. Ours has just turned 3, has gotten easier. Not sure we can afford another child though.
They'll be moaning about birthrate any minute now and how there won't be enough people to keep the economy going in the near future. 😒
The housing crisis and high costs in the UK is robbing consumers of their purchasing power. Unfortunately the housing crisis has never been resolved for decades and will continue to impact the economy negatively, as well as the morale of the people.
We have civil servants that calculate future housing needs and they are good at it.
We haven't built enough since 1975.
Every single year.
Anyone would have thought that the powers that be don't want to solve the housing crisis and have deliberately kept supply low to boost up the prices.that can't be possible because who would benifit in having the prices high.?
@@JohnPark-xf2gq I wonder what’s the MPs to landlords ratio ;)
My spending is now reduced to self-rationed electricity, service charge, Council Tax, and as little as I can get away with for vehicle expenses. Etc. No discretionary spending at all. Clothes tend to be the free cast offs which are not good enough for charity shops to actually sell!
Food involves first investigating the reduced section. And even then I eat a lot of supermarket brand baked beans! No doubt thatI am exactly the sort of person the politicians would be happy enough to see having a premature death.
I am not going be the beginning of the green shoots of growth. I am sure that I am not alone in being in this position.
It's because we're skint
I'm really skint.
The government doesn't have any money or assets and other than taxes they don't have other streams of revenue...
Why are consumers planning to spend less - because they have less to spend maybe.
@faree38green they could create a sovereign wealth fund. Infact 50% of revenue from North Sea oil should have gone into one from the start
@Spartan-jg4bf I agree totally... But the question being why hasn't the north sea oil gone into the treasury.. I mean where is it going.. There is no accountability at all
Gary’s Economics has covered this in a very detailed way in his video yesterday. The economics measure is broken, interest rates will not fix the problem, it’s a bandaid 🩹.
Your opinions are absolutely valid, the problem you have stated is spot on, and the economy must have its interest rates dropped but the redistribution of wealth in this country HAS to happen. If it doesn’t and Starmer/Reeves continue their hatchet job of attacks on the poorest of our people the economy will go into recession and could well end up on the world bank asking for a bailout.
But maybe that’s the idea, maybe that’s what Starmer and his Davos buddies want? 😢
Professor Richard Wolff also shines a light on how the neoliberal system actually works or doesn't work in the case of the masses.
If the value of the pound falls the price of most foods will go up. Most of our food is imported.
In 4 years the price to rent a modern 1bed has gone from 550-900 pm
Council tax has almost doubled in that period in some areas. Cost of heating has doubled if not more in 4 years. Yet wages only up a few %. People can't just magically get more money to spend. Until those costs come down a lot, or wages go up a lot, economy will continue to be flat.
I feel for people with kids, I don't know how they can afford it. Then people wonder why no one is having kids nowadays
@@user-qd5lo6oi8n Our council tax has been rising slowly but surely each year, but has certainly not doubled, rents on the other hand have almost doubled in the last 10 years, my wages have been much the same for the last decade, luckily it is not a minimum wage job, I don't think wages can go up as thr costs will only get passed onto us the workers, which means everything else will go up again.
Younger consumers are also not concerned with brands and more interested in cutting out harmful goods to the environment and buying 2nd hand and away from mass manufacturing.
The problem is that RR and the entire Labour Party are ineffective. The era of competent politicians is long gone. I distinctly recall when George Osborne became Chancellor over a decade ago. He and the Conservative Party used the same tactics-threatening the public with austerity and budget cuts while blaming the previous Labour government for a £10 billion deficit. You can easily find footage on TH-cam of George Osborne, alongside David Cameron, attributing the country’s poor state to their predecessors. What followed is now history, with Brexit and a series of deceptions from an incompetent UK government. The current shadow cabinet lacks anyone who appears even remotely capable. The situation has turned into a farce.
Maybe politicians should be paid based on the outcomes of how competent they have been in goverment.lardy arse johnson would owe us millions in negative bonuses due to his absolute medal winning incompetence.lf he had thought there was going to be a cost to his incompetence maybe he would not have applied for the job of crime minister and how much better would our country have been.
I IMAGINE that we are planning to spend less because in spite of any increase in income (and lots of people really haven't had that) our money isnt going as far.
On top of this, some costs are escalating way beyond inflation.
For example, my last dental inspection and hygiene treatment (at a private dentist because there is nno NHS availability locally) cost £130 six months ago. Today it was £160. A 23% increase in 6 months. The only material used were a pair of surgical gloves, some water, a mouth wash, and a length of dental floss. I fail to see where an addition of £30 is justified. But these kinds of cost increases are everywhere, at the petrol station, in the supermarkets, travel passes........
If inflation is said to be falling, the way it is measured needs to be reviewed.
It will be the usual things - the invisible overheads ones. Energy costs, maintenance contract costs on the equipment, insurance costs, staff PAYE etc costs, Buildings rate/rents.
I have money to spend if I wanted to, but as I’m getting older I realise that I don’t need to. Not interested in consumerism or capitalism. This is what has divided us. The rich have thrived while the rest of us are just considered as disposable.
Look at Sainsbury’s, laying off 3,000 people and blaming the NI raise that hasn’t happened yet while posting record profits. They laid off staff last year, the year before and the one before that, but nothing in the press about that. Interesting to see that another supermarket chain is looking to rehire these staff.
I don’t think people are saving, the fact everything has become more expensive including council tax for zero more services is the major factor. Labour have realised there policies are ruining the country hence the Heathrow runway which is in complete opposition to the Net zero cobblers.
Well said. Exactly my situation (saving, relatively well paid, worried about services, planning no large purchases). I despair about the new government, but despised the previous one.
My consumer confidence has been declining since 2016. Almost 10 years since and I am loathe to spend any amount unless absolutely necessary for survival. Holidays are a no. Luxuries are a no. Dining out or take away are too expensive and so is food I cook for myself. My (private landlord) rent is far far too high a portion of my monthly budget. Everything I earn goes to feeding a parasite or desperately trying to save enough to pull the leech from me.
My largest outgoing these days is vinegar so I can pickle more food to make it last. If I had a garden and a greenhouse I’d withdraw even further from the economy but as my landlord is tight fisted I have an “easily maintained” garden (tarmac).
Get yourself some big plastic garden tubs - you fill them full of soil and they give you enough space to grow most things in them
They are basically semiportable raised beds
I spend less because I have less, just get by on the bare minimum, sandwich for dinner, microwave meal for tea..
Microwave meals are usually more expensive than making the meal yourself
@@WillyJuniorit depends.
Reeves is worried about inflation. The fact the most recent inflation figures were better than expected was the only thing that saved her in terms of the bond market going crazy.
Check Prof Richard Wolff on inflation in his video on You Tube Democracy Works channel - Trump 2.0. An eye opener!
The country by country happiness index rated Finland number 1 in 2024. Why? Reportedly, trust. Trust that both government and government institutions are transparent, competent, not corrupt and are working in their interests. I leave you to be the judge.
Population of Finland is about the same as GreaterLondon area! and the UK is basically a London/SE economy only with the rest of the nation as a 3rd world area draining the high output of the economy in the S.Eeast - a slight exageration maybe.
So the "UK" could be like Finland if you simply got rid of all the UK population outside of the SE.
Britains industrial capacity has shrunk, and continues to shrink year on year, since the 1970s. Poor management, belligerent unions, short term outlook of the city of London, profligate spending of incompetent politicians, importing unskilled labour to keep down labour costs. Nothing will change whilst we have politicians that are bound by ideology and are not pragmatic. The U.K. does not stand up for itself, it is beholden to the EU and USA. I’ve watched since the 1970s, company after company being bought by foreign competitors, run down, asset stripped and closed. It continues today. Until we get politicians that will shake up civil service, the city, put the British people first, nothing will change.
3 out of the 6 places I've worked in my life were bought out by American companies. Each one closed soon after, when they'd taken what they wanted.
The economy here is so difficult. I am self-employed and have been for 5 years, but questioning right now if that is sustainable, or if we will be better off if I give this up and go and get a shit job again. 😢 Really not what I want to do, but my business has shrank this last year… whilst everything else has got more expensive, and what I earn does not cover anywhere near what it used to. Food is stupidly expensive.
My question, because I understand exactly what you are saying Richard, about government spending. My question is, what does that do to future tax? If our population is shrinking (and we know the average women is having less children or doing it later… speaking as a woman in my mid thirties who doesn’t have kids but is happily married) then as a population shrinks but the deficit of our government is higher, what will that do to future generations tax, to our pensions etc etc? Does that just mean higher tax in future? Because I agree that we really need growth, but I also fear that bad spending (because we know government spending is never streamlined well to go only where it needs to go, and there’s always ridiculous waste) will make the future harder. Am I missing something here? I’m genuinely trying to understand how a deficit affects governments and then how it affects individuals just trying to live their lives.
Finally, I agree with all the comments above. Why is Council Tax being raised at such a difficult time? Why are the government letting energy companies charge us so much to heat our homes and the government not capping it (we pay more than double the next country!)? Why are supermarkets able to get away with such ridiculous mark ups and with throwing away wasting food that doesn’t get bought?
It's like they're trying to make the population feel less secure on purpose, so they become compliant drones. Add the upcoming SEZs and Freeports to the mix and you have to wonder...
I had to quit work 5 years early due to disability (which did not qualify for any benefit). This completely drained my savings but finally I recently qualified for a state pension. As we have a demonstrably ageist government, I anticipate further attacks on my income. Of course I plan to spend less!
Work out what the compound effect of yearly 5% council tax increases actually means in the long run (let alone some councils attempting to ask for more than 5%). At the same time the services they offer are in constant decline.
My council is trying to increase by more than 40% because of their own incompetence & poor budgeting. Why should we have to pay more for their mistakes? They wasted the money on rebuilding the city centre when no one asked for it. The city is no better for it.
All the talk about "levelling up" different areas, and all it did was waste public money. Those people need investigating. If things like this continue the country will be ruined and everyone competent will leave.
@user-qd5lo6oi8n ouch!! I'm guessing that's Woking? Criminal, but nobody will hang for it
@@user-qd5lo6oi8n Ouch! I'm guessing that's Woking? Criminal behaviour
Levelling up was never an actual thing but a pr stunt by the tories to con the general public that they cared.the video of soonackered saying he wanted the money to go to the well off areas instead of the poorer.add to that the torys controlled who got what and it was obvious just a corrupt con trick sold to the hard of thinking by the master of snake oil sales men lardy arse boris.
I Listened to Gary Stevens, comments about how economists are trained. He suggests that their philosophy is flawed. Is this the reason why the government is so stuck in its ways?
Part of it, yes
Richard said people can’t save money they can’t spend money because they don’t have the money. Things are very expensive for what they are. It’s the government who have got their choices wrong and is playing to see if you don’t put money into an economy, how can economy grow, if you don’t have money in the pockets of the people then they can’t go and spend that money into the economy it’s a straight forward. Correlation Thatcher came in in 79 we had an economy where you could get a job at a drop of a hat she came in. She couldn’t get a job we had millions millions on the door. She wrecked the economy of the mining Thatcher wrecked a a travelling workforce in this country. She got saved twice once by a war with Argentina the second time the tax revenue from North Sea boil, but she actually did nothing for the economy, except sell everything off now 45 years later look at the position, we are in Thames water for starters. The government body that allows these types of institutions to put their water prices up or down up mainly I’ve been allowed to put the bills by 60%. Not because they are doing a good job. I’m allowed people to have water in a good manner, because they fucked it up and the previous just let all the infrastructure in this country deteriorate to where dump sewerage into a rivers and Seas and then Reeves is going after the long notice hanging fruit, the disabled of this country instead of the non-dorms because the non-dorms had given her a headache because they lobbied her and she gave up so now she goes for the lowest hanging fruit, do you member Sunak Owen, 5 million and having a non-Dom status 5 million I think the number is about I don’t know but there is a hell of non-Dom status in this country Sunak owed 5 million you do the math the governments we’ve had over the past 45 years, not had the interests of the general public of this country in mind they’ve had the wealthy interests in mind to the point where we are today wet austerities is something that now is used to beat people the general public over the head with haven’t got any money that is the biggest lie of all what you have the Bank of England once you’ve got your own bank you’ve got money. Richard explains it better, but people don’t seem to want to get it and this is the most mind numbingly depressing part of all this they would rather see the country go down the toilet, then bring the country back to a resemblance of what it used to be able to do and no one then we Gotta do it right now, is build the infrastructure of this country back to what it should be, and that everything privatised brought back in the house everything
I cannot for the life of me understand what this govt is trying to do! All I know is we Brits are fed up with constantly being punished with austerity and welfare cuts: 15 years of this from the Tories - and now Labour?!! Meanwhile big companies are allowed to rip us off while getting non-means tested subsidies...Why should it always be us and never the rich who are made to pay for crises created by them? 😡😡😡😡😡
The pubic overwhelmingly backed austerity for the first five years according to opinion polls and those who warned it was self-defeating, inhibited recovery and callous in its pernicious effects on the public realm were ignored or portrayed as flat earthers. The public swallowed economically illiterate lies from the Tories about government spending being the same as a household, bogus comparisons with Greece, fixing the roof while the sun shines, and even Labour in 2015 under Miliband would have continued with so called austerity lite had it won the election. Voters cannot support a policy and Thatcherism broadly and complain about its effects but this is what they have been doing since 1979 with every government in power. Public squalor and private affluence is the result.
Dont worry they are ll leaving. You will get a country without Anu rich people. Its going to be paradise.
You can't spend more than you earn and borrow forever sooner or later the country will go bankrupt
You would probably consider me rich. I paid a huge whack of tax last year. The problem for the government is as I have almost paid off my mortgage and have semi retired at that point my work commitment becomes relatively discretionary and if the government tries to take even more than the 60% of my income it currently taxes at my highest marginal rate I will simply cut back on the amount of work I do.
@@mrradman2986do that then. If you are unwilling to pay your share then “the work you do” has no value to the rest of us
Having personally seen how rubbish the job market is, if I lost my job I'd quickly regret any non essential purchase.
Raise tax threshold more money in poorer people's pockets to spend simples 💵
I agree but then there will be less money coming into the exchequer so the government will have to raise taxes elsewhere or borrow more. Maybe a wealth tax or higher taxes on the rich.
@@davidorr484 the latter is what everyone but the Uber rich wants... Why can't they pay in to where they take out their profits?
Cutting interest rates? Yes. Also targeted government investment in infrastructure and key services. Yet my concern is that lower interest rates will drive up house prices unless the government invests in quality social housing and caps private rents.
capping anything doesn't work, it just reduces supply resulting in an eventual price increase (the energy price cap is a good example).
Rental prices in Buenos Aires have dropped dramatically. How? By making it easier for people to become landlords, thereby increasing the supply and competition for tenants. Not difficult.
The idea that consumers are rational or respond to the type of data you suggest is complete fantasy. They are driven by a far less sophisticated decision making process barely extending beyond their next paycheck, or their last credit card bill.
Since covid there has been a fundamental shift in attitude towards debt and consumption and life in general. Politicians have reinforced the fact that citizens have to take control of their own lives because Lie/Con governments have shafted us for too long.
I'm certainly not going to revert to being a consumer ever again. I only buy what I NEED - not what the government wants me to buy. I will walk and use my bus pass before ever driving an EV. Adverts don't work with me.
The problem is, the longer that cost of living is an issue, the more people will get used to not being consumers. The economy will struggle in the UK for a while longer yet. No one wants to visit or move to the UK now also because of high crime, and immigration has diluted British culture.
Maybe people don't want to come to the uk because of the lack of public services combined with the rasism of so many who seem to blame their problems on immigrants rather than the corrupt politicians and the wealthy donors whose greed is disgusting.
It would be great if they could just tackle inequality...for once.
Only low paid jobs being created and housing costs way too expensive. We need a National Building program from non profit builders making insulated houses that will only ever be rented!
If only we had a labour goverment in charge who could set up such a scheme.?
@@JohnPark-xf2gq Only The Green Party would do this!
Recently bought a new TV, these seem good value nowadays. Back in 2000 it cost £500 for a big box 32" , this month £379 for a 55" good make too.
Due to the high increase in cost of living, ie gas/electric doubled in 3 years, food bills doubled in 3 years. What do they expect and also as pensioner on very small private pension I have lost WFP.
You're forgotten the massive price rises of the water companies who want you to pay more because their infrastructure is a mess because they have sucked out billions that should have been invested to pay foreign investors and greedy top management.thanks thachter for once again really screwing our country.
If one rich person has all the money, they will only buy one pair of trousers,
If you spread the money among more people, they will buy lots of pairs of trousers.
*Spread the money: improve the whole economy.*
This week Reeves said, "We have been listening to the concerns that have been raised by the non-dom community."
Even my Window Cleaner knows that neoliberalism has failed. Tax the rich.
Or for a different viewpoint, the people buying all the trousers form China will contribute nowt to the UK economy other than to make our balance of payments worse, while the "rich" will remodel their bathrooms etc and provide valuable income etc to the tradesmen in the local economy by doing so.
But the government didn't cut government salary. Why? If the government is low skilled then it is worth cutting their pay in half. I think that's fair.
I spend less because my VOTE doesn't mean anything any more - Labour puts corporate interests over public interests - eg privatising NHS / corporate welfare / not addressing fossil fuels - so I have made a commitment to NOT buy anything new (bar essentials) - I refuse to support a "growth" economy which is an unjust economy (i.e. consumer activism).
In a society where the outlook is of a less capable health service, an aggressive attitude towards taxation, soaring energy costs designed to drive net zero, and a dwindling likelihood of a state pension ….i don’t know why people are planning to spend less - it’s got me stumped
Inflation is high we have the highest energy costs certainly in Europe and living in Hampshire the council want to raise tax by 15% to pay for social care. Everything else car insurance, petrol,food is going up.
Your energy costs are high thanks to the net zero drive. The UK has the highest energy costs in G7
@@Spartan-jg4bf - except according to recent data and reports from organizations like the International Renewable Energy Agency (IRENA), green energy, particularly solar and wind power, is now generally cheaper than fossil fuels in most parts of the world, with the cost of renewable energy technologies rapidly dropping due to technological advancements; making it the most cost-effective option for new electricity generation.
@@Spartan-jg4bf Energy prices are based on gas prices not renewables stop reading the The Mail or any other billionaires rags
@sososoprano1 I'm afraid that you don't understand how power generation works. Solar and wind are not available on demand. If its not sunny and the wind is not blowing you have to pay for very expensive back up generation. It happened in the UK a few weeks ago. The simple fact is that the two largest economies in the world the US and China, are still primarily powered by fossil fuels. Most of the goods and services that you use orignate from those countries
15%?! Count yourself lucky, in areas of the north they want to increase by 40-50%!! These are poor areas where people already struggle, because councils wasted money on big contracted projects to try to bring in money.
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Remember during COVID, businesses got major financial help, but households did not. Now that Covid's finished, prices went up hugely and wages went down. That measley 5% wage increase for some public sector doesn't mean that people can go out to spend. On top of that it's us tax payers that are footing the bill to the likes of Michelle Mone etc., so it's not surprising that people aren't spending as they should. The recovery from financial suppression is going to take a lot longer.
The measly 5% that the nurses received was a slap in the face to them and because they didn't raise the basic tax allowances it was actually only 4% after the extra tax was taken.another example of the contempt the tories have for those nhs workers who put their lives at risk and even saved the life of that scumbag lardy arse boris.
I'm dropping out of capitalism as an act of rebellion. I'm doing everything in my power to stick with the basics: food, clothing and housing.
Pass it on.
We already pay huge taxes and recieve nothing in return so more government spending will only increase debt, crash the pound, and drive up interest rates. I can offer no solutions, and predict higher taxes and more cuts. Anyone who can should leave .
Consumption diabolical costly as to salaries ; country going down ?
Richard thank you as always. However I fear there is not a simplistic answer. My recipe would be replace Starmer & Reeves, possibly with Torsten Bell (Swansea MP). Then have a coherent housing policy with the objective to reduce house prices and rents. This might mean reactivating compulsory purchase powers of local authorities to buy agricultural land peripheral to existing development. A huge pre-fabricated housing initiative might also help here. Raising the tax threshold for the basic rate would also free up spending money. In short we should have a range of policies aimed at growth and reducing income equality which cannot be tackled without reducing housing costs. Another idea worth pursuing is the implementation of an online tax to balance competition thereby giving shops a chance to compete. This also would be a tremendous lift to our wellbeing as our town centres are restored to their former vibrance.
Plus, electricity and gas prices which are over inflated for business and private users. There needs to be a reset and now of what you are talking about and the item I have highlighted!
… and everything is twice as expensive as it used to be just a few years ago
why are people spending less? because they have less money
All correct but house prices and food prices would not budge and that would still leave a lot of people in a difficult situation. Corporations would still be able to increase their profits and squeeze people's finances.
I think the problem is deep rooted and it starts with identifying it : it's speculation in all its many forms. Kill speculation and consumers will feel safer. Interest rates will naturally fall and people will want to spend. Slowly, the government will feel in control and start spending on social care, transport, education etc...
But wealthy people and corporations LOVE speculation, they LOVE free rides (= low taxation, tax free products etc...) and feeling safe : it's just that for them, it comes with a different agenda.
It's just so tragic. Like the challenges of climate. Prosperity lies at our feet but we can't finance an initiative to pick it up and we've been told if we touch it we'll go blind
This what happens when you leave the EU!
One person’s spending is another person’s income!
Shame!
We need Public investment, hell will freeze over before the private sector do anything good for society
Imports may become more expensive if the value of the £ falls, it's not guaranteed and assumes the UK always has to be a price taker.
You cant do socialism in a capitalist market economy. The corporations wont allow ir.
yep, and breaking this is going to get ugly.
We have to stop this silly idea that we need to keep growing the economy before we can deliver for the majority. Growth through spending is a thing of the past and the only solution is to share more equally.
@@classicalfan-u8u ever tried moving to North Korea or Venezuela?
Aye, it seems simple budgeting of what is the most effective use of what you have has been lost on most governments.
It's like the friend who is always going for more certificates to get a better job, but ends up going further in debit. At some point you have to say "enough".
@quintessenceSL The problem is how can you budget when your population grows by up a million in 12 months? You can't budget if you don't know how many people that budget is for?
@@Spartan-jg4bf So what is your big idea; more of the same????
@classicalfan-u8u my idea is a points based immigration system. Carrot and stick approach to getting long term unemployed working, and scaling back public services until the debt has been dramatically reduced
Sorry, but foranyone like my colleagues and i who've just lost our jobs 'Rachel from accounts' could hardly expect us to want to spend. Does the government have any idea how few jobs that are currently available?
No, it's a secret they don't want to show. There are no jobs and AI and robots replacing more and more .. and work for most doesn't pay enough to have more than an existence...
I don't get where they think the spending is coming from?
Er... You're not British are you?
@CuriousCrow-mp4cx yes, why?
@CuriousCrow-mp4cx your accounts less than year old... What are you?
@@ukspawn666did you just reply from the wrong burner account?
I thought Murphy wanted to save the environment. If people buy and throw aware less stuff, isn't that a good thing?
Since "austerity" I've found myself consuming less and less purely by way of not engaging.
I distinctly remember Gordon Brown (not a fan BTW) saying how we'd spend our way out of recession, which was sensible. Then watching in disbelief all the media and the country went, nah, we'll try our damnedest to make the recession permanent, a wierd awakening to narrative for me. So now we have it, "austerity" forever.
In this environment, its not so much can't, but wont be a "good consumer". I'd rather just not bother to engage with a society bent on decine.
Excellent!!
There was a cost to Covid.
The Bank of England cannot expect to claw back that cost within a few years (if ever) - particularly following the impact of the Ukraine invasion on food and energy prices.
It's like lending money to a business and expecting it back the next day. 🙄
QE is something you can do instantly. The corresponding QT should happen over a decade or more (if ever), as the health of the economy allows.
It's not difficult to stop buying fast fashion, temu style straight-to-landfill products on a whim, and prioritise buying things that will last that you really need, and especially those that benefit your community and the country at large
Yes! Get out of debt as quickly as you can and then buy the best you can afford.
@@annalieff-saxby568 the 'best you can afford' for a lot of people is that cheap crud.
I can speak to this personally. In Nov 2020 I locked into a 5 year fixed rate, and right now I'm overpaying as much as I can on that and saving a lot of the rest knowing I'm due to remortgage under much higher rates this year. If rates were lower, I'd be a lot more comfortable spending
Wrong from the start. Interest rates are not too high. It’s only very recently, since the financial crisis of 2007/2008 that they fell to record lows. They were not normal and were largely due to misguided government intervention. The Bank of Englands own records show that The average BoE interest rate over the past 100 years is around 8%. Since 1694 the average has been around 6%.
You sound like you don’t know this is all planned,when you look at it this way everything they have done and will do makes perfect sense.
The UK is in Keynes’ Paradox of Thrift, n’est-ce pas ?
I think people have finally got wise and have had enough of the constant marketing grifts
IDK about that. You got Evidence that the Rich aren't Wealthier overall?
@ it was more of an aspirational thought :)
I certainly got wise to mass consumerism long ago.
I like the snappy ending of Richard.
You didn't go into the diminishing real value of wages. When I left engineering in 1991 (well, it was closing!), I was earning more in real terms with no degree than my son now earns with a masters in engineering. You cannot look at weak spending power without looking at how wage differentials have eroded average spending power, just at the time that inflated asset prices have made essential needs (housing, health, transport, etc.) more expensive.
The idea that Reeves cancels the independence of the bank of England and forces it to cut rates is a really terrible one. Two things will happen: government borrowing costs will skyrocket and the pound will fall even further. In any case low rates have got us where we are with unaffordable housing (except for oligarchs hiding their money in empty Chelsea flats) and no hope for the young ever to save enough to get on the housing ladder.
I agree entirely with you, but there's one more issue - A lot of people are being told their jobs and even careers will be made obsolete by AI within half a decade.
I agree, but this is more due to long term policies than recent events and interest. 35 years ago, the mean wage to housing was 2x - 4x. Even during a period with 14% interest, most still had agency within their expected means - and housing prices fell.
Today, housing affordability is way beyond mean wage (8 - 12x ?). Also, this no longer affects the “free housing market”, since ever more is owned by fewer. Wage increases can not carry this financialisation, neither can the expectations of “personal entrepreneurship”.
Steve Keen has pointed to how government spending decreases during financial growth, as our politicians still believe “the state is a household”. Well, real households can’t “issue currency” - other than engaging in grey or black market labour, since even time is lacking for most employees.
Housing is the single connection to capital and debt for most wagetakers. Further growth cannot “fix” this asymmetry, where asset values drive work, beyond human capabilities.
I have to hand it to Stiglitz et al, they were right 25 years ago. Few of us listened - I didn’t either. That said, I really appreciate your work, mr. Murphy…! 😊
I look forward to these videos every morning before I start work proper. They act as a stark reminder of the economic realities we face, but more importantly, give potential solutions to them. Keep going Richard ...
What’s he advocating though? Tax and spend?
@@nawaz345spend and tax, more accurately
@@nawaz345 Not tax and spend from government, just spend. Governments of fiat currencies can create money, they do not have to balance the books with taxation.
@@oddaspereven5485 yeah I think that’s all fine, but we do operate in a system of global capital (not saying that is right or wrong, it’s just fact) so how do you stop a run on the pound and/or rampant inflation if you endlessly print money? Also we did that by way of QE and it just led to increasing inequality and asset bubble inflation. No society has printed its way out of economic crisis. The US also did QE but it managed higher growth as it has vibrant tech sector. Something we don’t have and will never have (nor would this twat even want presumably). So it’s just more of the same - spend money recklessly on bullshit and hope it works.
The real problem is that this govt doesnt want to make any major changes in case they come back to haunt Labour...
So all the major changes they have done so far don’t count then 😂😂😂
i am not sure bored is the right description of a working class that has endured wage stagnation job insecurity high costs that have left them living from pay check to pay check no savings no dream of being able to save up a deposit for a house plus that saving would not be enough by the time they thought they might have enough ; inequality since the early 80's have left a huge gap between those who have and those that dont this is not a problem just in this country but all the western world capitalism is not working for the average if there is one worker anymore
To expect the government to produce growth like a rabbit out of a hat in less than a year is ludicrous
You mean to expect them to have realistic goals and promises is realistic?
Their masters, the Super Rich will get richer so they will be doing their job whatever they say to the public.
#getPRdone
Producing growth is not easy.however putting obvious barriers to achieving growth like adopting tory fiscal policies and taking small businesses is just making it far more difficult than necessary.
Typho taking should be taxing.
I'm saving as hard as I possibly can. The UK is rubbish really, everything is overpriced & we have a system that would rather you paid rent for years rather than give you a mortgage in many instances.
People should be saving ALWAYS, the future is ALWAYS uncertain.
and the end is always near
You're kidding right? 🤣 I live hand to mouth. Saving is not an option.
You nailed it mate. @@mychannelM3
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Wasnt interest roughly 5-7 percent throughout history? We cant just make up the rate of return we want...
"We will have to substitute with home made products" - Um, just one problem with that. We should we reinvent the wheel? And home grown products will be more expensive due to manufacturing costs and labour at home. Where are we going to build all these factories? NIMBYs already say UK has no space and far right groups say jobs should go to natives, but natives demand much higher pay than their counterparts in Asia. And so the cost of home grown products will be too high compared to the affordable products from Asia.
There is one solution, use maximum automation in new factories, don't create jobs for humans, instead take an automate first approach. Build a high tech robot making industry, this will create high paying jobs for people with the aptitude for STEM work. (Everyone else will have to find other jobs - they won't be high paying.)
ER no. It’s not because of interest rates. It’s because of taxes. The Laffer Curve in operation, like never before. And don’t pretend you wish it wasn’t happening. You never saw a tax increase you didn’t like.