Why do things keep getting worse?

I just wonder about ‘the economy’ which seems to run counter to the interests of the majority imho. I mean we hear that the economy is struggling so you would assume that big businesses and banks would be struggling, however, energy companies are making big profits, banks are now back to a bonus culture, water companies pass on profits to their stakeholders, and supermarkets are making big profits, so they are doing well out of ‘the economy’, but none of this trickles down to the majority of people, instead we hear of prices going up, stamp duty going up, and pensions being taxed. So what about the profits made by big businesses and banks etc.? Why, after decades of the majority being told that the economy is struggling, and some people are forced to eat or heat, isn’t that struggle being seen at the top as well as the bottom??
And surely if those at the top of the tree are thriving it means the economy isn’t that bad after all and perhaps some of the money being squeezed out of those at the bottom could be mitigated by balancing the books a bit better and making sure everyone benefits from profits they contributed to by paying exorbitant bills.

David49

I see no indication that the economy is good even the well off are economizing and businesses are very downbeat

I'm not so sure.

People seem to travel more, go to expensive concerts, football matches and certainly have plenty of clothes to wear - no make do and mend any more.

Yes, it probably does need both partners working to sustain such a lifestyle, but how did this idea originate thst women didn't work and were homemakers? We may have had the luxury of staying at home until our children started school, that was the expectation in the 1960s and 70s, but it meant really tightening the purse strings. Just basic necessities, no luxuries. Then back to work when they were all in school (and how good that felt!!).

Of course, there are some people struggling, and quite often this is due to family breakdown. We need to support those who are struggling for one reason or another.

For someone who claims not to know much about ‘the economy”, Babs, you have analysed it very well. Your logic is faultless.

Unfortunately there is little we can do to alter the direction it takes because the economic beliefs of those responsible for directing our economy, the Treasury, under the nominal direction of the Chancellor, and the Bank of England are rooted in a system which is designed to favour the upward flow of money to the already wealthy and to corporate profiteers , leaving the rest of the population to enjoy the crumbs they leave behind.

I’ve been banging on about this for years but there’s very little interest, downright disbelief and people appear to think it’s boring.

Even if you do know the truth about how the economy could work for everyone it’s just frustrating and infuriating to know that there’s little one ca do about changing it.

If you don’t mind being frustrated and cross I suggest you seek out videos on youtube by Richard Murphy and Gary Stevenson. They both have deep concerns about how our economy favours the wealthy, though they come at it from different perspectives. Richard has solutions, Gary is struggling to find solutions.

fancythat

There used to be a time when man went out to work and woman kept house and kids.
Nowadays, to have any decent standard of living, both people need to work. And often get topped up by benefits.

I know which time of life I prefered.

When was that?
I remember my mother working.
Not full-time, admittedly and she was usually there for me or I went work with her.

I do have friends who never went back to work after having a family but somehow manage to have a higher State Pension than me 🤔

Austerity doesn't work, Babs03

Farage's strategy is to lament that Britain is broken, find someone to blame ( the EU and now immigrants) and to present Reform as the razzmatazz answer to all problems. Well, it's just bullsh*t. He and his knuckledragging Party would be a disaster.

Grantanow

Farage's strategy is to lament that Britain is broken, find someone to blame ( the EU and now immigrants) and to present Reform as the razzmatazz answer to all problems. Well, it's just bullsh*t. He and his knuckledragging Party would be a disaster.

Best summing up of Reform I’ve ever read! Eg it used to be Polish people stealing our jobs but now it’s boat people. If they get into power ( heaven help us) I wonder who they’ll find to blame for everything. If I’m lucky it won’t be me or my family but I wouldn’t bank on it .

It is early days yet. When it gets closer to an election they will dig up major dirt on Reform and discredit them. That, or declare a war somewhere so everyone has to rally round and support the current crowd. Wait and see. Old tactic but tried and true and it usually works.

nanna8

It is early days yet. When it gets closer to an election they will dig up major dirt on Reform and discredit them. That, or declare a war somewhere so everyone has to rally round and support the current crowd. Wait and see. Old tactic but tried and true and it usually works.

What a disgusting thing to say…from someone thousands of miles away gloating over all of this (don’t worry though…I’m the one that will get banned from this forum, not you…)

MayBee70

nanna8

It is early days yet. When it gets closer to an election they will dig up major dirt on Reform and discredit them. That, or declare a war somewhere so everyone has to rally round and support the current crowd. Wait and see. Old tactic but tried and true and it usually works.

What a disgusting thing to say…from someone thousands of miles away gloating over all of this (don’t worry though…I’m the one that will get banned from this forum, not you…)

Aussies are pretty cynical about politics but the point about declaring war is closer than you think. Ukraine has not been resolved and we could get seriously involved quite easily.

@MaizieD thanks. I was expecting to be shot down in flames by someone with a much better grasp of how the economy works. I can only apply the logic of someone who is pee’ed off by the unfairness of it all. Sadly the ‘I’m alright Jack’ mentality of those who are comfortably off ensures that this rigged economy keeps on rewarding those with money whilst punishing those who have none.

Looking back to when mine were small, if a mother went out to work, you would find a child minder and your little one was safe. They would be registered and perhaps even have their own children. Now, the emphasis seems to be on nursery schools which cost an arm and a leg because they have to meet so many rules and standards. I am not saying the old ways were better, but they did work. Also, the contents and decor in a home are so much hight now. We lived for 9 years with very old stuff and only when we had saved enough did my 60 year old kitchen get replaced. If suggested to the young generation now, they would be horrified if that was expected of them. We did not have a holiday for ten years as we needed every penny to pay the mortgage etc. I could go on. Expectations are different.

Grantanow

Farage's strategy is to lament that Britain is broken, find someone to blame ( the EU and now immigrants) and to present Reform as the razzmatazz answer to all problems. Well, it's just bullsh*t. He and his knuckledragging Party would be a disaster.

The whole premise of populism is to appeal to the lowest possible denominator, in a nutshell people’s darkest fears and prejudices and to promise quick fixes that will never work. Farage, who readily admits he knows nothing about how politics works, has made this an exact science. And there are plenty who sign up to his ‘let’s just blame foreigners’ spiel but as my old mum said ‘there is one born every minute’.

Allira

fancythat

There used to be a time when man went out to work and woman kept house and kids.
Nowadays, to have any decent standard of living, both people need to work. And often get topped up by benefits.

I know which time of life I prefered.

When was that?
I remember my mother working.
Not full-time, admittedly and she was usually there for me or I went work with her.

I do have friends who never went back to work after having a family but somehow manage to have a higher State Pension than me 🤔

50s, 60s, 70s.
I was surrounded by them

I think nanna8’s summing up of the situation is a very likely scenario.

David49

I see no indication that the economy is good even the well off are economizing and businesses are very downbeat

This ! Exactly.

rocketstop

David49

I see no indication that the economy is good even the well off are economizing and businesses are very downbeat

This ! Exactly.

Spot on 👍

…this rigged economy keeps on rewarding those with money whilst punishing those who have none.

It’s not totally deliberately rigged. It’s just based on a premise that has the result it does. That premise is that ‘the markets’ (private ownership of everything) are more efficient than tge state and that wealth will flow downwards.

Despite the fact that this clearly doesn’t work the government pushes on with it because the mainstream economists who have a grip on our financial institutions are trained to think that way and can’t see that there might be better approaches. It’s the epitome of that well known definition of madness. Doing the same thing over and over and expecting a different result.

Also, of course, because they believe that wealth trickles down the wealthy are indulged with big tax advantages and exemptions.

There isn’t any quick solution to private ownership we have gone too far down the road to reverse it all.

I see the problem as the politicians not listening to the economists, Keynes promotes investment to increase the productive capacity of a nation that is exactly what we have not been doing in the UK. The service economy plus increased social spending has only resulted in a gradual sinking of the UK finances

GrannyGravy13

rocketstop

David49

I see no indication that the economy is good even the well off are economizing and businesses are very downbeat

This ! Exactly.

Spot on 👍

We don’t often eat out but Friday night was an anniversary so booked a table at our favourite mid range pub
I was surprised when I got my first choice of time 2 yrs ago it was very busy. They were only half full, nice food, sensible prices good service, I was very surprised.

If they are quiet the rest are really struggling.

“Also, of course, because they believe that wealth trickles down the wealthy are indulged with big tax advantages and exemptions.”

I suppose in this case that those at the top are more than happy to go along with a flawed economic model and to influence politicians of every hue once in power to go along with it as well. And turning the tide with regard to this is nigh on impossible.

I don't think that turning the tide is impossible, Babs, but it requires the government/Treasury taking a different path.

David49 is correct with his citing of Keynesianism. This is the economic strategy that enabled the privatisation of some industry, the formation of the NHS and the movement towards a more equable distribution of wealth in the post WW2 period.

Neoliberal, market economy theory didn't take hold until Thatcher introduced it. She hated 'the state', running services,depicting it as a 'nanny state' and set about destroying as much of it as she could. Subsequent governments have continued her strategy, with the results we see today.

Government 'could' do more to change it, with more state investment in public services and progressive taxation which curbs the excessive growth of wealth (taken over all the 'wealthy' actually pay a smaller percentage of their incomes than do the rest of the populace) but I see little chance of that as our current government is in thrall to wealth and has no idea of how spending public money drives growth.

And, of course, so many people believe that a national budget is like a household budget, which it isn't, that they endure things like austerity because they think it's what should be done. This suits the wealthy just fine because they are unaffected by it.

GoodAfternoonTea

Looking back to when mine were small, if a mother went out to work, you would find a child minder and your little one was safe. They would be registered and perhaps even have their own children. Now, the emphasis seems to be on nursery schools which cost an arm and a leg because they have to meet so many rules and standards. I am not saying the old ways were better, but they did work. Also, the contents and decor in a home are so much hight now. We lived for 9 years with very old stuff and only when we had saved enough did my 60 year old kitchen get replaced. If suggested to the young generation now, they would be horrified if that was expected of them. We did not have a holiday for ten years as we needed every penny to pay the mortgage etc. I could go on. Expectations are different.

Just replaced our 40 year old kitchen, GoodAfternoonTea! It was still ok and probably would have seen us out; the new one isn't such good quality either but it is brighter and fresher.

When we moved into our first house we bought a second-hand table and chairs from a neighbour of my DB for £15. It looked absolutely fine and they said they could deliver it for us. It arrived on a trailer 😁, tied down with rope and a little chunk of the table had broken off. My father did a good job of making a piece to fit and it lasted us for nearly 25 years.

Thanks MaizieD and David, makes much more sense now, the thing is if it is possible to change an economic model as Thatcher did, who in today’s political landscape has the guts to do this?

MayBee70

nanna8

It is early days yet. When it gets closer to an election they will dig up major dirt on Reform and discredit them. That, or declare a war somewhere so everyone has to rally round and support the current crowd. Wait and see. Old tactic but tried and true and it usually works.

What a disgusting thing to say…from someone thousands of miles away gloating over all of this (don’t worry though…I’m the one that will get banned from this forum, not you…)

Truth hurts. I don’t think it is disgusting at all. Thatcher did it with her war in the Falklands. Blair did it. Open your eyes please. I never gloat, I love my country of birth but that is perhaps too hard for you to understand. I just do not love the current shower who are in government. You should have kept with Sunak, an honourable man.
Thanks for the lovely comment darling ,it cheered me up immensely.