The Uk economy

What do you think of RR’s budget MaizieD and all her economic decisions?All leading to the B of E stepping in?

Sarnia

Wyllow3

His feud? Like, what did Starmer do to create it?

I may be wrong but Trump and Musk have it in for Labour because of remarks made by Starmer, Lammy & Co. Rightly or wrongly with their comments, they really need to engage their brains before speaking at times. There is also the little matter of Labour supporters going to the US and trying to woo voters towards Harris which Trump will not forget.

They have always taken part in American elections, there’s nothing new about it. If Trump really bears grudges why did he pick a running mate who once described him as a Nazi. By the way, where is Vance these days; has anyone seen or heard anything of him?

Keepingquiet
Are you saying brexit had no impact, either positively or negatively?

In which case, we should have stayed in?

Which brings us back to the impact of people not bothering to vote.

Sarnia

I may be wrong but Trump and Musk have it in for Labour because of remarks made by Starmer, Lammy & Co. Rightly or wrongly with their comments, they really need to engage their brains before speaking at times.
Clever people would know that if you attack a country’s leader or potential leader, those under attack would be quite likely to retaliate, and others jump on the bandwagon.

Oreo

What do you think of RR’s budget MaizieD and all her economic decisions?All leading to the B of E stepping in?

OK. Lets look at this another way.

What has the BoE done by way of 'stepping in' and how is it going to improve the economy?

Far/hard left principles will do this country no more good than the far/hard right ones from which effects we are still currently trying to recover. A balanced economy might rock a little from time to time (like the fulcrum of a seesaw) but it is not going to throw up and crash the public.

For this reason alone I would want the government to stick with Rachel Reeves.

Yes, there is a problem with rising gilt yields, but these are the result of a complex mix of factors. While the UK government’s fiscal policies and debt management play a role, other factors like inflation expectations, global economic trends, central bank actions and someone like Trump coming to power in America, can also carry heavy influence.

When a more centrist government is being attacked from both sides, that simply suggests that they are doing the right thing. Impatience with getting us back on track after the last 14 years (that mistyped as 24 - it knows how some of us feel!) Amazes me. If it's taken 14 years to wreck an economy, why do people expect thing to be easy to solve and solved overnight?

A balanced economy might rock a little from time to time (like the fulcrum of a seesaw) but it is not going to throw up and crash the public.

Can you be sure of that?

Hence why I started the thread really.
I can go overboard with thinking the economy is properly crashing.

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

We certainly have to work at making them an easier market to export into and import from.

I would suggest we need to work with Canada too. For their sake and ours.

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

Oh keepingquiet - Isn’t your arm aching wielding that massive shoehorn?

I think we should all vote for you as Chancellor of the Exchequer MaizieD. You seem more competent than the cohort we have presently in Downing Street making decisions.

As an aside, I read recently that Rachel Reeves’ husband was on Liz Truss’ economic team. 😮

FriedGreenTomatoes2

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

Oh keepingquiet - Isn’t your arm aching wielding that massive shoehorn?

Shoehorns aside, it is a fact that trade has dropped since leaving the EU, trade we now need very badly with the possible machinations of Trump ahead.

Germany has a bigger problem than us. A country that was once the power house of Europe.

www.goldmansachs.com/insights/articles/weighing-the-prospects-for-a-turnaround-for-germanys-economy#

It doesn't need a shoehorn to state the bl**ding obvious. Brexit has seriously damaged the UK economy.

More austerity will damage it even further. We're already suffering from 14 years of tory austerity.

I'd like to know how PN would define, or even describe, a 'balanced economy' as there is an accounting definition of 'balance' and a popular myth definition.

I would say that there are two 'economies' running side by side in the UK. There is the 'economy' of the wealthy, whose wellbeing is unaffected by the deterioration of public services because they can pay for whatever they want and the 'economy' of the rest of the population who are increasingly having to cut back in order to survive.

The only time these two economies meet is in the area where the wealthy are taking more and more of the money from the rest of the population through any businesses they might have.

fancythat

^A balanced economy might rock a little from time to time (like the fulcrum of a seesaw) but it is not going to throw up and crash the public.^

Can you be sure of that?

Hence why I started the thread really.
I can go overboard with thinking the economy is properly crashing.

I'm sorry you are feeling so anxious fancythat. That's not a nice place to be.

I don't think anyone could, or should try to reassure you that world economies won't crash. However, all countries except those led by disruptors, are working to keep a balance.

Change is not a bad thing although some people will have difficulties adapting. Disruption (extremism) will hurt many and help few. Remember we have had economic downturns in balanced economies that rebounded in the past without severe consequences to the public.

When I look at at the current disruptors, let's take Putin and Trump as examples, they are very similar in their aims as rulers. Democracy is often the little kid who has to use their wits and their courage to sustain a better quality of life for individuals and society as a whole. If you need to hang on to something I would hand on to the fact that heroes seem to be there when we need them although not always recognisable at the time .

Germany is suffering from much the same problem as us, though, in that its neoliberal economic ideology only works when it is able to maintain a trade surplus because it is scared witless at the thought of running a deficit.

Remember we have had economic downturns in balanced economies that rebounded in the past without severe consequences to the public.

Still curious to read your definition of a 'balanced economy'.

It doesn't need a shoehorn to state the bl**ding obvious. Brexit has seriously damaged the UK economy. (MaizieD)

No, it just needs someone to politely share their point of view.

PoliticsNerd

^It doesn't need a shoehorn to state the bl**ding obvious. Brexit has seriously damaged the UK economy^. (MaizieD)

No, it just needs someone to politely share their point of view.

Sorry you missed my politely expressed point of view earlier in this thread.

It's ok PoliticsNerd.
I dont really feel anxious.

But I aam aware that I can think the worst sometimes, including the economy, and then things dont pan out as bad as previously thought, for a lot of people.

Surely a balanced economy is one where the spending needs of a country is at least met by revenue collected, hopefully some in excess for improvement or growth.

For a great many years the spending in the UK has exceeded revenue.

keepingquiet

Oreo

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

It’s nothing to do with Brexit ….are you on the wrong thread?

No, not the wrong thread. Of course this has something to do with brexit, what was the point of voting for it if it was to have zero impact?

We were told about the economic impact but everyone shu their eyes and hoped for the best.

The biggest economic disaster this country has ever witnessed and people are still in denial.

Yes, it can no longer be denied that Brexit was a financial disaster, brought about in some part by that hero Farage.

Oreo

MayBee70

So Cambridge econometrics don’t know what they’re talking about? And what happened to all the amazing trade deals we were going to have straight away? The farmers have been shafted by trade deals we’ve done with NZ and Australia I believe (?).

Economic analysts can be wrong! Predicting ten or sixteen or whatever it was years in advance isn’t an exact science.Stuff happens!

So, on that basis, all the forecasts of the Brexit benefits should not have been believed either?

David49

Surely a balanced economy is one where the spending needs of a country is at least met by revenue collected, hopefully some in excess for improvement or growth.

For a great many years the spending in the UK has exceeded revenue.

That is a business, David, not a country.

If you go back a few hundred years you'll find that spending has rarely equalled revenue. It is usually in deficit.

But the question I repeatedly ask and never get an answer too is, where does our money come from? What is the actual source of our money?

How does the quantity of money in the economy manage to roughly keep pace with a rising population and inflation?

I give up*MaizieD*. 🤷‍♀️
Please tell us the answer.

David49

Surely a balanced economy is one where the spending needs of a country is at least met by revenue collected, hopefully some in excess for improvement or growth.

For a great many years the spending in the UK has exceeded revenue.

I agree.

Or at least, if we borrow money, we can comfortably repay it.
Which doesnt seem to be what is happening now.
And then it is uh oh.

“Where does money come from”, originally by barter, 1 cabbage exchanged for 2 potatoes, with coinage potatoes and cabbages had a value in currency, labour also gained a value.

Money comes from the exploitation of resources, labour, oil, coal, iron and all the other commodities we consume. The UK along with many other nations have reduced exploiting their own resources and import from China, India etc, who are exploiting cheap labour and resources from many other places.

Hopefully growth in the economy contributes, if growth exceeds inflation its in balance. With a shrinking working population and longer lifespan that hasn’t been possible in many countries.

Regrettably growth hasn’t exceeded inflation, exploitation of resources has reduced so it’s hardly surprising that year by year we borrow more. Taxation is too low, we have a wealthy middle class with assets measured in hundreds of thousands that are receiving free services and pensions they don’t need.

One thing for sure creating or borrowing money is a sticking plaster, filling the gap between revenue and spending, that borrowing costs the UK currently £100billion each year. All the economic theories cannot fix the basic problem, we are spending more than we earn in the UK and there are no easy fixes,