Simply we have a party in government which is driven by a right wing doctrine not interested in improving the well being of the general population but helping the wealthiest and the biggest corporations? I see it in businesses I dealt with where over the last 15 years businesses expanded, directors received enormous pay and bonus increases while the workers were sacked and re employed at much lower rates of pay and worse conditions. This is just greed by those who hold power over ordinary workers and because they can they take advantage.
The biggest Billionaires are on a 30%++ Wealth Gain p.a. run rate, yet nobody calls that inflation, nor even bad inflation, as they do if it appears the servile class 'could' eke out 3%+ back to back - finally, after 50 years.
Britain needs a new, fresh🌱, optimistic & forward💹-looking leadership. Led by someone who is capable of brushing away the stench of 'Bojo'🦨from 10 D⏬wn -ing🤮! . . . :-))
Nonsense... there have been payments to those on low income .. investment in new trade deals post brexit for the good of all UK citizens and the rich have payed millions to support the NHS so get of your class war Nonsense also the left middle class like you have no idea of the effects of labours policy on working people like the oversalaried communist hypocrite lynch of the RMT union who got £16 billion of our taxpayers support money then striked ...stopping working people..
What is so worrying is that they are choosing to say that last week's budget didn't cause the market reaction. So they will try not to reverse what they've done. How can they think it's sensible to borrow money to fund tax cuts? Unless they admit they got it wrong a reverse what they've done things will just get worse and worse.
I think they will find some way to adapt the budget, probably by cutting spending - cutting real welfare payments and capital investment usually have the smallest political 'hit'. (though there will be big cost to poverty and lower growth in long term (ironically). The 45% tax cut may be delayed
@@FightTheByte_ - I agree with 90% of what you are saying - capitalism globally is in what we call "interconnected cascading systems failure" or "everything is broken and everything you need to fix it is also broken" - capitalism has hit the buffers basically, its screwed. BUT... I think the fact Liz and KK are bat sh!t crazy and ideologues is what freaked the market - every time they promise to be sensible the £ goes up. Every time they promise to keep doing what they said it goes down.
The whole point of trickle-down economics was never to boost the economy. Generally, politicians (usually conservative) that suggest this are the ones that care least about the economy. Rather, trickle-down was to boost political donations from rich donors. It is a mindless bribe to the rich. In this capacity it does seem to work as in the past the party that suggested tax cuts received more money from rich donors. However, it is bad for business because it usually kicks the legs out from under the economy. In the end in 1982, Reagan had to pass the largest tax increase in US history to balance the economy out.
Excellent video to summarise what’s going on in the UK market! This video needs to be shared on the extreme couponing and budget Facebook group! It’s a group with 2 million members in the uk scrimping and savings in order to get by in the uk. I am just not sure if sharing the link maybe disapproved by the admin of the group but I will try to share it in some way.
Rishi Sunak: If the Conservatives aren't the party of sound money, then who are we? The Human Hand Grenade and Kamikwasi: *Allow us to introduce ourselves*
Could so easily have done something clever like cutting the "right tax". A couple of points off VAT would have been well-received and effective as a noninflationary economic stimulus.
As someone who lived through Reagan's voodoo economics, I can attest that trickle-down economics is appropriately named. If you're at the lower end of the economy, a trickle is exactly what you get.
From 1973 to 1982, GDP averaged just 1.6% and inflation was at 14.6% under Jimmy Carter. The Reagan economic boom restored the more usual post war growth rate as the economy averaged 3.6% in real growth from the beginning of 1983 to the end of 1990. From the early ‘80s to the late ‘90s, the Dow Jones Industrial Average rose fourteen times, and forty million jobs were added to the economy. Total federal revenues doubled from just over $517 billion in 1980 to more than $1 trillion in 1990. In constant inflation-adjusted dollars, this was a 28% increase in revenue. This economic boom lasted 92 months without a recession, from November 1982 to July 1990, the longest period of sustained growth during peacetime and the second-longest period of sustained growth in U.S. history to that time. The proportion of total income taxes paid by the top 1% rose sharply under President Reagan, from 18% in 1981 to 28% in 1988. While the average effective tax rate for the top 1% fell by 30% between 1980 and 1992, and by 35% for the top 20% of income earners, it fell by 44% for the second-highest quintile, 46% for the middle quintile, and 263% for the bottom quintile. Reagan's approval rating hit a low of 35% in 1983, yet rose to 61% a year later in 1984 and he left office with an approval rate of 64%. Compare that to Biden's current no trickle at all economics.
@@grooveman222 The crisis during Carter’s presidency was caused by enormous debt burden inherited after Vietnam war and was triggered by 1973 oil crisis (and second oil crisis of 1979, which didnt help), aggravated by flawed federal reserve policy of overstimulating the economy with low interest rates. This was in line with then dominant macroeconomic theory, namely late Keynesianism and Phillips curve theory; however, due to crisis being caused not only by lowered demand, but also a significant supply shock (remember oil embargo), this overstimulation just sent the economic into inflationary seizure, which only ended with establishment of late monetarism and theory of inflationary expectations, as well as nomination of Paul Volcker (appointed by Carter btw), who jacked up interest rate in late 70s early 80s so high, that it almost destroyed the economy, but also killed inflationary expectations and inflation. Reagan de facto received the economy after Volcker had hit a “reset” button on it. No wonder during his time it became better. Actually, later Reagan’s tax cuts and military overspending created permanent budget deficit, which led to Bush’s “no new taxes” followed by new taxes, but that’s another story
@@ilyarudz9508 - You mean the military overspending the brought an end to the cold war? Contrary to popular myth, while inflation-adjusted defense spending increased by 50% between 1980 and 1989, it was curtailed when the Cold War ended and fell by 15% between 1989 and 1993. However, means-tested entitlements, which do not include Social Security or Medicare, rose by over 102% between 1980 and 1993, and they have continued climbing ever since.
@Hyponakte - While the economy malice and and inflation arrived before Carter things only got worse during Carter's term and improved significantly under Reagan, so hardly attributable to luck. If you can quote statistics that refute the stats I already cited, please do. Otherwise your "feelings" have less than zero credibility.
It's hard to discount conspiracy theories when such blatant irresponsible policy is stubbornly maintained. Why no U turn? Who is Truss working for? Not the people of Britain.
So, the BoE is buying bonds to secure pension funds? The BoE doesn't generate income except from speculation that means to buy bonds they will have to print money or just put it on some accounts by a few hits on a keyboard. But isn't standard theory that when the amount of money grows and the amount of products stays the same (or even shrinks in a recession) that will create inflation? Doesn't that mean that the BoE did just help pension funds, but in the end these funds will pay out pensions which can buy less than they would have otherwise?
There is great joke about trickle-down economics, but 99% of you won't get it... In this video, I didn't have time to go into trickle-down economics. But, there is a video here which goes into more detail. ua-cam.com/video/T26_SGuoD5s/v-deo.html
This video is even better! Thank you for making such insightful videos at this very tumultuous period. Your videos are way better than all those news articles updates out there right now.
"Tories do not like a deficit of 33 per cent." You mean, only when it's a Labour government announcing such figures. That's the only context there Tories take issue with deficits.
This explains why Truss/Kwarteng's doubling-down is so alarming: "Another inescapable delusion of the human mind is ‘loss aversion’. This is the human refusal to accept that time, money or effort has been wasted. Rather than cut our losses and accept defeat, we expend yet more of those precious resources to show that it hasn’t all been for nothing. It’s why we might continue waiting for a bus that hasn’t come for twenty minutes, even though we could probably walk home in ten. It’s why warring nations have allowed more troops to die in unwinnable conflicts rather than concede defeat and risk acknowledging that those who have already died did so for nothing. It’s a phenomenon well known to students of direct marketing - the controversial pyramid-style schemes in which people sign up to sell goods and sometimes stick with it for months and years, despite never making any money. "When it comes to gamblers, many would rather blame anything else than admit they have willingly joined a game so evidently rigged against them. ‘You will see gamblers irrationally defend a casino,’ says Kim Lund. ‘I can be an addicted gambler and I can see an article written that criticises the casino for sub-par gambling-addiction remedies and even though I’m one of those addicts, I’ll defend it. I am so afraid that all of this was for nothing that I’d rather defend the idea that it is something that it isn’t than accept that all of this was pointless.’ "Loss aversion is at the heart of one of the behaviours that clinicians and researchers use to identify gambling addiction: chasing losses. A punter chasing their losses keeps feeding money into the system, hoping that the big win that makes it all worthwhile is just around the corner. In the long run, it almost never is."
I too find myself in this situation quite often unable to decide if I am giving up too early or the game is lost. Any techniques to get out of this psychological trap?
What if giving money to the top people is actually a good decision as they might spend it on investments and does not add fuel to the inflation fire, while giving money to the bottom would fuel the inflation.
Who in hell borrows money to fund tax cuts unless they are totally bonkers unless they are Dr. Krazy? Its something Tedodoro Obiang Nguema Mbasogo of Equatorial New Guinea would have done!
Economic output rose by 0.2% between April and June, revised up from a previous reading of -0.1%, the Office for National Statistics (ONS) said. It suggests the UK is not currently in recession, as was predicted by the Bank of England earlier this month.
There are actually Tory party members claiming that the only issue with Truss and Kwarteng is that... they are super intelligent in their thinking, capable of thinking several moves ahead but not articulate enough in explaining their logic. Because they are too intelligent for their own good. That is how deluded that party is (little wonder given how much the electorate has abetted and rewarded them for over 40 years).
Two Facts.The BOE said it would start buying Gilts next Monday,this has been rolled back to the end of October.Secondly the OBR report will not be published until November.Do the Government and the BOE really expect the financial markets to wait on them.I DONT THINK SO.
If they were serious about their ideology they would have cut tax for the majority tax band. This would have been popular but probably just as irresponsible. Their pay master is likely to have been bankers and the rich. Any idea if we can ever be like Singapore? Is it good to be like Singapore?
If we want to keep cutting taxes, something will have to give, e.g. private health insurance, decline in public investment. WIth UK demographics (rise in old) not feasible to target low tax Singapore
Yes, NHS will not be sustainable. In spore, most people are encouraged to have private health insurance. Major illness can bankrupt ppl without insurance.
Umm, what are you talking about? Taxes are too high for the rich, they should make tax an equal percent of ones income for everyone. The reason it's a percentage is so that if you make more you pay more. Why should the most productive people in society be forced into giving a bigger slice of their already bigger pie? Your comment makes it abundantly clear that you don't understand their ideology otherwise you would have realized this. Instead I imagine you want to see tax hikes on the "rich" so you can leach off the work of others, but that wouldn't be very fair would it?
There's one thing the "Singapore on Thames" charlatans never mention about how the economy works. About 40% of the population are foreign-born. They do all of the dirty, low-paid jobs that citizens of Singapore don't want to do. How do you think voters in well-off Tory electorates would react if told they could be richer as long as we're willing to bring in 20 million or so temporary immigrants from mostly Africa and South Asia?
Growth comes from liberalisation of the labour market and business. Tax cuts are important but need to be targeted at places which will stimulate productivity e.g. cutting down the green levy to reduce fuel costs. Also, they should have temporarily allowed drax and other stations to run on coal.
Trickle down was always a middle class euphemism for piss on the poor policy. Likewise 'Glass ceiling' is a flimsy covert admission of the class system meaning Class ceiling. There is only on way to grow the economy and that is by feeding the grass roots. Giving money taken from the billionaires and giving it to the poor, who will spend it to the benfit of all businesses large and small, and who wont offshore any of it.
Well, apparently James Bond’s Aston Martin is up for sale - cmon people get your wallets out, who knows you might benefit someone less fortunate than yourself- trickle down in a nutshell
What went wrong is that the Party and the City didn’t realise that KK & LT we’re going to put their Olevel joint (with Pretty Petal) economy project paper “Unchained Britannia” into effect. Some totally unqualified Nobel Economics Laureate apparently described the theory as “deranged”.
One ill managed budget announcement has as much effect as two weeks to flatten the curve proved effective. The economy problems today were made in decisions made and executed years ago. Multi-varied and inter dependent.
I've put money on Betfair in the Politics section showing that Liz Truss will be out by Christmas...if there was a bet showing a shorter time frame I would have taken that too. I did this while the Leadership debates were going on and got 50-1. Now the odds have firmed to 6,8 to one. That's my way of dealing with this crazy world...what's yours.
I have family in England cousins that have been on the dole and making cash on the side for the last 40 years I have one cousin who had a council flat and the council house at the same time that went on for 20 years pension plans they could no longer afford adjustable housing mortgages I mean it's ridiculous
The UK urgently needs an intelligent PM. Call for an urgent vote of no confidence against the Liz Truss government. Get rid of clueless Lizz and her career politicians before they cause irreparable damage to the country. #BringBackRishi
I think the intension was for a short term economic growth. but sadly the market is panicking in a very bad way which led to many economists around the world used this opportunity to express their understanding of macroeconomic !!!
The difference between Reagan/Thatcher era was that national debt wasn't as high compare to today and the economy wasn't global with many countries being underdeveloped at that time business had no choice but to invest within their borders instead of going to places like china for cheap labor and maximize their profit margins
I agree. Brexit should be mentioned. Thank god we are no longer part of the recession basket case that is THE EU. With the Euro falling so badly against the dollar and Germany giving millions to Russia and Italy voting for a racist government and Sweden going the same way. Not to mention Hungary. Macron not pulling his weight when it comes to helping Ukraine. I am very pleased to have left the EUROPEAN UNION.
What went wrong? She announced tax cuts which were not popular with the powers that be and so they whacked the currency in order to 'persuade' her to change that policy “Who controls money control the world.” ― Henry Kissinger
Hearing Less of Ukraine would be fine , Yesterdays failed experiment in western expansionism has ruined EU perfectly. Good Job Team Z. written by a NATO Citizen
Who buys all the Cheap Property?With a weak £, high interest rates for UK nationals, high inflation (reduced spending power) and stagnant wages - off shore wealth can purchase up Britain on the Cheap.
It's all quite simple. Western Europe uses social democratic politics. The US, while conservstive, understands running a deficit is okay. UK right wingers are obsessed with the idea that a state is like a household. They think running a surplus is desirable, when it isn't.
Tac cuts don't cause inflation. The government spends the tax anyways. It only shifts money to other places. Taking up more debt by making more money causes more inflation.
Any advice? I don't want to send money to the government soon on tax return because I want make sure this war has finished before and none is going to help it. I don't want help war weapons, only the red cross. So I'll do the self assessment, but pay only after this war has finished or shall I not even do it now? I want to leave it ready on the files so no headaches doing it after the war. But what will be worse? postponing payment or self assessment or both in term of fines and interest rates? Thanks in advance Anyone?
You don't really make it clear when you talk about supply side economics (trickle down economics?) being a bad theory, why you think it is. Supply side economic works, but it is not Keynesian economics which is where you put more money into the public's pockets to spend and this is supposed to create jobs and growth, but is inflationary. What you do with supply-side economics is look at production efficiency. You can increase production efficiency through investment if you know what you are doing. Obviously if a worker produces more it is the same as having say one and a half workers and the wages of one and a half going to one worker. There is also another way you can boost production efficiency and that is by increasing competition. Also lets say you are about to hit the buffers and your inflation starts going up because you production efficiency is down. You have to call in an interest rate hike where it makes borrowing more expensive. This is not as bad as it seems because you must understand failure is part of a successful economy and you must let business fail. You see the ones that fail are the inefficient ones and failure acts as a stick to teach us not to become inefficient. You see this all the time going on in your garden. The weak plants will die because the strong ones will grab all the light. Eventually all the plants end up stronger.
The first time in history there is a Male Monarch with a female prime Minister and a non-white person as a chancellor. Things start going downhill. It teaches us how diversity is not necessarily a route to success.
I can explain it quickly: the Tory party has been playing pass-the-parcel with the premiership since Cameron and now it's the go of the remedial class 👍
Its all about proving how personally beneficial to each and every member of the UK Electorate a policy of being kicked in the goolies with carbon-fibre steel capped boots, whilst having your hair set on fire and simultaneously being torn bodily asunder by opposing teams of harnessed stallions in an immersion tank filled to the brim with black stripe molasses . . can be. Nothing sado-machocistic about that. Every home should have one.
What it doesn't take into account is what is possible to implement given the current neoliberal political climate. Any measure that impacts the rich negatively is impossible, as that would mean immediate political suicide.
Borrowing to fund tax cuts? Let me demonstrate what it means.... "I'll be needing some money by year's end. Usually it comes from ... him over there. He gives me the money every year, he can afford it. BUT this year I'm telling him to keep it. Oh, I still need to SPEND the money.... and I don't actually HAVE it.... ...so I'll commit to MAKING that money, sometime in the far future. A "lender" will give me that future money today, for a fee of course. So : instead of money coming in and going out without problems..... I now have an obligation to worry about.
taxes in a modern economy dont go onto finance future spend in a country where the sovereign issuer creates it (UK £ ) daily by increasing reserves when it spends via the cf. So basically a lot of these decisions are based on fallacy
1.tory MPs take short positions on the pound (Eg; Mogg & Co ). betting the pound falls in value against the US$ 2. tory deviously sneaks a ridiculous set of policies past the mandatory OBR checks by misnaming them . Why? As soon as tory announces the policies the pound falls sharply (precisely as predicted/warned by Sunak weeks before) . 3. when the pound rises slightly from the earlier fall tory then announces it will go further with the same ridiculous policies... ensuring the pound falls sharply again ! Everyone with short positions on the pound made a fortune this week from each of tory's policy announcements. #CriminalFilth #Traitors
Yeah, who voted for cutting of spending? Yeah okay. After crashing the economy anything they do from here on is ineffective. Slash pending increase spending it won't make any difference they already cocked it up. Welcome to poverty for a generation.
Lis Truss said she had no problems with nuking the Russians. Little did the Brits realize she had no problems with nuking Britain itself.
Someone should tell her if UK nuke Russia someone will still survive but if Russia nuke UK no one will survive
She is so obsessed with the war with Putin that she’d rather see Russia collapsing even if this means Britain own economy collapse.
@@silenceisbetrayal6431 that's absolutely right mate😂
😭😭😭😭
I think people should never mess up with Vladimir Putin or Kim Jong Un. These two never care what others think of them. Like Nike, they just do it!
Simply we have a party in government which is driven by a right wing doctrine not interested in improving the well being of the general population but helping the wealthiest and the biggest corporations? I see it in businesses I dealt with where over the last 15 years businesses expanded, directors received enormous pay and bonus increases while the workers were sacked and re employed at much lower rates of pay and worse conditions. This is just greed by those who hold power over ordinary workers and because they can they take advantage.
Tories are up to their dirty tricks again.
They're setting up Britain for a massive
Austerity 'Measure.'
The biggest Billionaires are on a 30%++
Wealth Gain p.a. run rate, yet nobody calls
that inflation, nor even bad inflation, as they
do if it appears the servile class 'could' eke
out 3%+ back to back - finally, after 50 years.
Britain needs a new, fresh🌱,
optimistic & forward💹-looking
leadership. Led by someone who
is capable of brushing away the
stench of 'Bojo'🦨from 10 D⏬wn
-ing🤮! . . . :-))
Nonsense... there have been payments to those on low income .. investment in new trade deals post brexit for the good of all UK citizens and the rich have payed millions to support the NHS so get of your class war Nonsense also the left middle class like you have no idea of the effects of labours policy on working people like the oversalaried communist hypocrite lynch of the RMT union who got £16 billion of our taxpayers support money then striked ...stopping working people..
What is so worrying is that they are choosing to say that last week's budget didn't cause the market reaction. So they will try not to reverse what they've done.
How can they think it's sensible to borrow money to fund tax cuts?
Unless they admit they got it wrong a reverse what they've done things will just get worse and worse.
I think they will find some way to adapt the budget, probably by cutting spending - cutting real welfare payments and capital investment usually have the smallest political 'hit'. (though there will be big cost to poverty and lower growth in long term (ironically). The 45% tax cut may be delayed
It’s that bloke who’s name begins with P, isn’t it?
@@FightTheByte_ - I agree with 90% of what you are saying - capitalism globally is in what we call "interconnected cascading systems failure" or "everything is broken and everything you need to fix it is also broken" - capitalism has hit the buffers basically, its screwed.
BUT... I think the fact Liz and KK are bat sh!t crazy and ideologues is what freaked the market - every time they promise to be sensible the £ goes up. Every time they promise to keep doing what they said it goes down.
It may have been a trigger but you can't taper a Ponzi scheme.
Watch out for the spam thread that got embedded in here. You Tube isn't filtering or blocking anything anymore.
The whole point of trickle-down economics was never to boost the economy. Generally, politicians (usually conservative) that suggest this are the ones that care least about the economy. Rather, trickle-down was to boost political donations from rich donors. It is a mindless bribe to the rich. In this capacity it does seem to work as in the past the party that suggested tax cuts received more money from rich donors. However, it is bad for business because it usually kicks the legs out from under the economy. In the end in 1982, Reagan had to pass the largest tax increase in US history to balance the economy out.
So the whole point of trickle-down economics is a mindless bribe to the rich
well. regardless its time for you to repay this national debt. the jobcentre is that way fella.....
@@888ssss I'm not in Britain.
@@kimwelch4652 ok. centrelink is that way....
yes it is. That is what its followers believe.
Excellent video to summarise what’s going on in the UK market! This video needs to be shared on the extreme couponing and budget Facebook group! It’s a group with 2 million members in the uk scrimping and savings in order to get by in the uk. I am just not sure if sharing the link maybe disapproved by the admin of the group but I will try to share it in some way.
Thank you.
It's an attack on the working everyday people, at a time when the cost of living crisis is in full effect..!😳
She’s a WEF member enough said.
Very well presented , polite , concise and no rambling
Fantastic video. What a clear and concise explanation. Keep up the amazing content 👏
Rishi Sunak: If the Conservatives aren't the party of sound money, then who are we?
The Human Hand Grenade and Kamikwasi: *Allow us to introduce ourselves*
Rishi is a Goldman Sachs stooge. It's unfortunate as he seemed like a very wealthy yet normal guy.
Excellent video. Very explanatory and easy to understand. Even though it made me more worried than before. Thank you anyway. I shared it on Facebook.
Thanks. Remember it isn't the first economic crisis we have had. Economies have a way of coming back.
@@economicshelp yes but how many have been caused by a budget announcement?
Could so easily have done something clever like cutting the "right tax". A couple of points off VAT would have been well-received and effective as a noninflationary economic stimulus.
The shortest serving prime minister in British history.
Yes, I think you are right.
🤞
As someone who lived through Reagan's voodoo economics, I can attest that trickle-down economics is appropriately named. If you're at the lower end of the economy, a trickle is exactly what you get.
From 1973 to 1982, GDP averaged just 1.6% and inflation was at 14.6% under Jimmy Carter. The Reagan economic boom restored the more usual post war growth rate as the economy averaged 3.6% in real growth from the beginning of 1983 to the end of 1990. From the early ‘80s to the late ‘90s, the Dow Jones Industrial Average rose fourteen times, and forty million jobs were added to the economy. Total federal revenues doubled from just over $517 billion in 1980 to more than $1 trillion in 1990. In constant inflation-adjusted dollars, this was a 28% increase in revenue. This economic boom lasted 92 months without a recession, from November 1982 to July 1990, the longest period of sustained growth during peacetime and the second-longest period of sustained growth in U.S. history to that time. The proportion of total income taxes paid by the top 1% rose sharply under President Reagan, from 18% in 1981 to 28% in 1988. While the average effective tax rate for the top 1% fell by 30% between 1980 and 1992, and by 35% for the top 20% of income earners, it fell by 44% for the second-highest quintile, 46% for the middle quintile, and 263% for the bottom quintile. Reagan's approval rating hit a low of 35% in 1983, yet rose to 61% a year later in 1984 and he left office with an approval rate of 64%. Compare that to Biden's current no trickle at all economics.
@@grooveman222 The crisis during Carter’s presidency was caused by enormous debt burden inherited after Vietnam war and was triggered by 1973 oil crisis (and second oil crisis of 1979, which didnt help), aggravated by flawed federal reserve policy of overstimulating the economy with low interest rates. This was in line with then dominant macroeconomic theory, namely late Keynesianism and Phillips curve theory; however, due to crisis being caused not only by lowered demand, but also a significant supply shock (remember oil embargo), this overstimulation just sent the economic into inflationary seizure, which only ended with establishment of late monetarism and theory of inflationary expectations, as well as nomination of Paul Volcker (appointed by Carter btw), who jacked up interest rate in late 70s early 80s so high, that it almost destroyed the economy, but also killed inflationary expectations and inflation. Reagan de facto received the economy after Volcker had hit a “reset” button on it. No wonder during his time it became better. Actually, later Reagan’s tax cuts and military overspending created permanent budget deficit, which led to Bush’s “no new taxes” followed by new taxes, but that’s another story
@@grooveman222 Jimmy Carter caused the OPEC oil crisis apparently.
@@ilyarudz9508 - You mean the military overspending the brought an end to the cold war? Contrary to popular myth, while inflation-adjusted defense spending increased by 50% between 1980 and 1989, it was curtailed when the Cold War ended and fell by 15% between 1989 and 1993. However, means-tested entitlements, which do not include Social Security or Medicare, rose by over 102% between 1980 and 1993, and they have continued climbing ever since.
@Hyponakte - While the economy malice and and inflation arrived before Carter things only got worse during Carter's term and improved significantly under Reagan, so hardly attributable to luck. If you can quote statistics that refute the stats I already cited, please do. Otherwise your "feelings" have less than zero credibility.
Not of 'our' making. Tory policy is not supported by a majority of electors - only 29% in 2019. That's part of the problem.
It's hard to discount conspiracy theories when such blatant irresponsible policy is stubbornly maintained.
Why no U turn?
Who is Truss working for?
Not the people of Britain.
So, the BoE is buying bonds to secure pension funds?
The BoE doesn't generate income except from speculation that means to buy bonds they will have to print money or just put it on some accounts by a few hits on a keyboard.
But isn't standard theory that when the amount of money grows and the amount of products stays the same (or even shrinks in a recession) that will create inflation?
Doesn't that mean that the BoE did just help pension funds, but in the end these funds will pay out pensions which can buy less than they would have otherwise?
Great content. Could you please do a video on the BOE explaining how they buy and sell guilts as a monetary policy tool.
There is great joke about trickle-down economics, but 99% of you won't get it... In this video, I didn't have time to go into trickle-down economics. But, there is a video here which goes into more detail. ua-cam.com/video/T26_SGuoD5s/v-deo.html
This video is even better! Thank you for making such insightful videos at this very tumultuous period. Your videos are way better than all those news articles updates out there right now.
thanks for this video - the graphs make the situation abundantly clear
I suspect that the Tory Party Conference will finish off Truss and Kwarteng. Tories do not like a deficit of 33 per cent.
"Tories do not like a deficit of 33 per cent." You mean, only when it's a Labour government announcing such figures. That's the only context there Tories take issue with deficits.
@@oldskoolmusicnostalgia Sorry. I meant poll deficit.
This explains why Truss/Kwarteng's doubling-down is so alarming:
"Another inescapable delusion of the human mind is ‘loss aversion’. This is the human refusal to accept that time,
money or effort has been wasted. Rather than cut our losses and accept defeat, we expend yet more of those
precious resources to show that it hasn’t all been for nothing. It’s why we might continue waiting for a bus that
hasn’t come for twenty minutes, even though we could probably walk home in ten. It’s why warring nations
have allowed more troops to die in unwinnable conflicts rather than concede defeat and risk acknowledging that
those who have already died did so for nothing. It’s a phenomenon well known to students of direct marketing -
the controversial pyramid-style schemes in which people sign up to sell goods and sometimes stick with it for
months and years, despite never making any money.
"When it comes to gamblers, many would rather blame anything else than admit they have willingly joined a game
so evidently rigged against them. ‘You will see gamblers irrationally defend a casino,’ says Kim Lund. ‘I can be an
addicted gambler and I can see an article written that criticises the casino for sub-par gambling-addiction remedies
and even though I’m one of those addicts, I’ll defend it. I am so afraid that all of this was for nothing that I’d rather
defend the idea that it is something that it isn’t than accept that all of this was pointless.’
"Loss aversion is at the heart of one of the behaviours that clinicians and researchers use to identify gambling
addiction: chasing losses. A punter chasing their losses keeps feeding money into the system, hoping that the
big win that makes it all worthwhile is just around the corner. In the long run, it almost never is."
I too find myself in this situation quite often unable to decide if I am giving up too early or the game is lost. Any techniques to get out of this psychological trap?
What if giving money to the top people is actually a good decision as they might spend it on investments and does not add fuel to the inflation fire, while giving money to the bottom would fuel the inflation.
Who in hell borrows money to fund tax cuts unless they are totally bonkers unless they are Dr. Krazy? Its something Tedodoro Obiang Nguema Mbasogo of Equatorial New Guinea would have done!
Economic output rose by 0.2% between April and June, revised up from a previous reading of -0.1%, the Office for National Statistics (ONS) said. It suggests the UK is not currently in recession, as was predicted by the Bank of England earlier this month.
There are actually Tory party members claiming that the only issue with Truss and Kwarteng is that... they are super intelligent in their thinking, capable of thinking several moves ahead but not articulate enough in explaining their logic. Because they are too intelligent for their own good. That is how deluded that party is (little wonder given how much the electorate has abetted and rewarded them for over 40 years).
As my Irish friends would say, anything that screws Britain, is good.
Strange, considering thousands upon thousands upon thousands of Irish live their lives in England
Above the fold headline seen on Daily Mail today:
"TRUSS IS NOT FOR TURNING"
The thatcher cosplay is getting a little worrying now
GREAT VIDEO - to the point, explained well, bo BS - you got a SUB...!
Usually when there is such coordinated opposition in the MSM and from authoritative bodies it's a sign you're doing something right.
Nope... It's just you who are a conspiracy theorist...
@@guleiro Trusted News Initiative.
Thanks for a clear and concise description with some figures, it’s hearts not to find hugely partisan commentary.
Two Facts.The BOE said it would start buying Gilts next Monday,this has been rolled back to the end of October.Secondly the OBR report will not be published until November.Do the Government and the BOE really expect the financial markets to wait on them.I DONT THINK SO.
If they were serious about their ideology they would have cut tax for the majority tax band. This would have been popular but probably just as irresponsible. Their pay master is likely to have been bankers and the rich.
Any idea if we can ever be like Singapore? Is it good to be like Singapore?
If we want to keep cutting taxes, something will have to give, e.g. private health insurance, decline in public investment. WIth UK demographics (rise in old) not feasible to target low tax Singapore
Yes, NHS will not be sustainable. In spore, most people are encouraged to have private health insurance. Major illness can bankrupt ppl without insurance.
Umm, what are you talking about? Taxes are too high for the rich, they should make tax an equal percent of ones income for everyone.
The reason it's a percentage is so that if you make more you pay more. Why should the most productive people in society be forced into giving a bigger slice of their already bigger pie?
Your comment makes it abundantly clear that you don't understand their ideology otherwise you would have realized this. Instead I imagine you want to see tax hikes on the "rich" so you can leach off the work of others, but that wouldn't be very fair would it?
There's one thing the "Singapore on Thames" charlatans never mention about how the economy works. About 40% of the population are foreign-born. They do all of the dirty, low-paid jobs that citizens of Singapore don't want to do.
How do you think voters in well-off Tory electorates would react if told they could be richer as long as we're willing to bring in 20 million or so temporary immigrants from mostly Africa and South Asia?
Singapore would not be Singapore without Indonesia. Think on that.
was it really reaganomices? or volcker high interest rates and subsequent juice the markets and economy last 40 years?
Absolutely brilliant synopsis! Thank you.
Fantastic explanation of some frightening details 😬
Both Government gilts and intrest rates are both on average still at historic lows. Maybe things are just returning to vaguely normal levels.
this is like a GCSE presentation for credits.
it's a supply side shock, to shift the supply curve hopefully increasing productivity..
Also, Dizzy Lizzie wants to spend a further £157bn on defence. Wheres that coming from?
Any reason you didnt mention brexit?
"Trickle down" is Newspeak for "soak up".
Growth comes from liberalisation of the labour market and business. Tax cuts are important but need to be targeted at places which will stimulate productivity e.g. cutting down the green levy to reduce fuel costs. Also, they should have temporarily allowed drax and other stations to run on coal.
Trickle down was always a middle class euphemism for piss on the poor policy.
Likewise 'Glass ceiling' is a flimsy covert admission of the class system meaning Class ceiling.
There is only on way to grow the economy and that is by feeding the grass roots.
Giving money taken from the billionaires and giving it to the poor,
who will spend it to the benfit of all businesses large and small,
and who wont offshore any of it.
They made things worse..get them Out...
I said the same thing and apparently there is nothing we can do. All the power to deal with this shit is with parliament.
Well, apparently James Bond’s Aston Martin is up for sale - cmon people get your wallets out, who knows you might benefit someone less fortunate than yourself- trickle down in a nutshell
What went wrong is that the Party and the City didn’t realise that KK & LT we’re going to put their Olevel joint (with Pretty Petal) economy project paper “Unchained Britannia” into effect.
Some totally unqualified Nobel Economics Laureate apparently described the theory as “deranged”.
Excellent video
One ill managed budget announcement has as much effect as two weeks to flatten the curve proved effective. The economy problems today were made in decisions made and executed years ago. Multi-varied and inter dependent.
I've put money on Betfair in the Politics section showing that Liz Truss will be out by Christmas...if there was a bet showing a shorter time frame I would have taken that too. I did this while the Leadership debates were going on and got 50-1.
Now the odds have firmed to 6,8 to one. That's my way of dealing with this crazy world...what's yours.
I have family in England cousins that have been on the dole and making cash on the side for the last 40 years I have one cousin who had a council flat and the council house at the same time that went on for 20 years pension plans they could no longer afford adjustable housing mortgages I mean it's ridiculous
The UK urgently needs an intelligent PM. Call for an urgent vote of no confidence against the Liz Truss government. Get rid of clueless Lizz and her career politicians before they cause irreparable damage to the country. #BringBackRishi
"you might like the free market, but the free market might not like you" - says it all
I think the intension was for a short term economic growth. but sadly the market is panicking in a very bad way which led to many economists around the world used this opportunity to express their understanding of macroeconomic !!!
Welcome to Englandastan you can keep your Tory party you were the only ones who voted them in 🧨
At the end of the year 1$ will be 1.2 pound
The difference between Reagan/Thatcher era was that national debt wasn't as high compare to today and the economy wasn't global with many countries being underdeveloped at that time business had no choice but to invest within their borders instead of going to places like china for cheap labor and maximize their profit margins
the new PM should have just raise the price of SCotch whiskies x 3 to erase UK national debt -- them numbnuts will buy more and helps the pound also.
Still watching Frank G Melbourne Australia 🇦🇺 ❤️
I agree. Brexit should be mentioned. Thank god we are no longer part of the recession basket case that is THE EU. With the Euro falling so badly against the dollar and Germany giving millions to Russia and Italy voting for a racist government and Sweden going the same way. Not to mention Hungary. Macron not pulling his weight when it comes to helping Ukraine. I am very pleased to have left the EUROPEAN UNION.
"Tax giveaway"??? Let's see what happens. BTW, there's room on your shelf for more books.
What went wrong? She announced tax cuts which were not popular with the powers that be and so they whacked the currency in order to 'persuade' her to change that policy
“Who controls money control the world.”
― Henry Kissinger
Who are 'the powers that be'?
This past week reminds of that fateful day in 1990's. Under Chancellor Normand Lamont, interest rate was raised multiple times in a single day.
Leave trickle down to dura ace to 105. Works well.
They did it deliberately!
"ALL HAIL SUPPLY-SIDE JESUS!"
Hearing Less of Ukraine would be fine , Yesterdays failed experiment in western expansionism has ruined EU perfectly. Good Job Team Z. written by a NATO Citizen
what is the uk debt if it isnt in balance sheet terms the private sector surplus - balances have to balance
I can wait for the Tory conference this week. Should be hilarious.
Who buys all the Cheap Property?With a weak £, high interest rates for UK nationals, high inflation (reduced spending power) and stagnant wages - off shore wealth can purchase up Britain on the Cheap.
It's all quite simple. Western Europe uses social democratic politics. The US, while conservstive, understands running a deficit is okay. UK right wingers are obsessed with the idea that a state is like a household. They think running a surplus is desirable, when it isn't.
Tac cuts don't cause inflation. The government spends the tax anyways. It only shifts money to other places.
Taking up more debt by making more money causes more inflation.
Trickle down?
I have an opinion on the best part of truss
I can never understand why people get upset when they get their hard earned money returned to them
you seem to have forgot, eu is having a similar crisis.
None of us will know how much people in power failed us all.
Any advice?
I don't want to send money to the government soon on tax return because I want make sure this war has finished before and none is going to help it. I don't want help war weapons, only the red cross.
So I'll do the self assessment, but pay only after this war has finished or shall I not even do it now?
I want to leave it ready on the files so no headaches doing it after the war. But what will be worse? postponing payment or self assessment or both in term of fines and interest rates?
Thanks in advance
Anyone?
You don't really make it clear when you talk about supply side economics (trickle down economics?) being a bad theory, why you think it is. Supply side economic works, but it is not Keynesian economics which is where you put more money into the public's pockets to spend and this is supposed to create jobs and growth, but is inflationary. What you do with supply-side economics is look at production efficiency. You can increase production efficiency through investment if you know what you are doing. Obviously if a worker produces more it is the same as having say one and a half workers and the wages of one and a half going to one worker. There is also another way you can boost production efficiency and that is by increasing competition. Also lets say you are about to hit the buffers and your inflation starts going up because you production efficiency is down. You have to call in an interest rate hike where it makes borrowing more expensive. This is not as bad as it seems because you must understand failure is part of a successful economy and you must let business fail. You see the ones that fail are the inefficient ones and failure acts as a stick to teach us not to become inefficient. You see this all the time going on in your garden. The weak plants will die because the strong ones will grab all the light. Eventually all the plants end up stronger.
The first time in history there is a Male Monarch with a female prime Minister and a non-white person as a chancellor. Things start going downhill.
It teaches us how diversity is not necessarily a route to success.
Why exactly would tax cuts and the free market be bad for Britain? I don’t see it.
London School of Economics?
I can explain it quickly: the Tory party has been playing pass-the-parcel with the premiership since Cameron and now it's the go of the remedial class 👍
No mention of Brexit ?
I am in Ireland and said from the start that was another huge mistake
Trickle down economics make me so angry, the wealthiest people hoarde their money, none of it trickles down if they don't spend it.
Is this a redux of the Madness of King George?
The pound has bounced back infact its higher against the dollar than pre budget
It is beyond me, a person of Least Trust was chosen as the Prime Minister of the UK.
Go ahead and tell your people to vote based on candidate's origin👏👏
Pls be more specific in title, there is so much self inflicted damage its unbelievable.
Its all about proving how personally beneficial to each and every member of the UK Electorate a policy of being kicked in the goolies with carbon-fibre steel capped boots, whilst having your hair set on fire and simultaneously being torn bodily asunder by opposing teams of harnessed stallions in an immersion tank filled to the brim with black stripe molasses . . can be.
Nothing sado-machocistic about that. Every home should have one.
What it doesn't take into account is what is possible to implement given the current neoliberal political climate.
Any measure that impacts the rich negatively is impossible, as that would mean immediate political suicide.
Borrowing to fund tax cuts? Let me demonstrate what it means....
"I'll be needing some money by year's end.
Usually it comes from ... him over there.
He gives me the money every year, he can afford it.
BUT
this year I'm telling him to keep it.
Oh, I still need to SPEND the money.... and I don't actually HAVE it....
...so I'll commit to MAKING that money, sometime in the far future.
A "lender" will give me that future money today, for a fee of course.
So : instead of money coming in and going out without problems..... I now have an obligation to worry about.
Wealthy people are tax cuts which is bad for us
Past caring and commenting
Chancellor has a kwool name.
taxes in a modern economy dont go onto finance future spend in a country where the sovereign issuer creates it (UK £ ) daily by increasing reserves when it spends via the cf. So basically a lot of these decisions are based on fallacy
Well, looks like it's all doom and gloom here.
thatchers legacy prevails.
The majority of British people don't have money to spend and how on earth the inflation come from!!!
1.tory MPs take short positions on the pound (Eg; Mogg & Co ). betting the pound falls in value against the US$
2. tory deviously sneaks a ridiculous set of policies past the mandatory OBR checks by misnaming them . Why? As soon as tory announces the policies the pound falls sharply (precisely as predicted/warned by Sunak weeks before) .
3. when the pound rises slightly from the earlier fall tory then announces it will go further with the same ridiculous policies... ensuring the pound falls sharply again !
Everyone with short positions on the pound made a fortune this week from each of tory's policy announcements.
#CriminalFilth #Traitors
Truss claimed she had studied Economy maybe Fairy-tale Economy She does not know how money worked
Trickle down economy looks like a sham, doesn't it?
இங்கிலாந்து நாட்டின் புதிய பிரதமர் இலங்கை ராஜபக்ஷ அவர்கள் போன்று செயல்படுகிறார். சீக்கிரம் வரம் வருமை.
அது போல் தெரிகிறது
don't you mean, what could actually go right?
the only way out of this, Governments need to cut spending.
Yeah, who voted for cutting of spending? Yeah okay. After crashing the economy anything they do from here on is ineffective. Slash pending increase spending it won't make any difference they already cocked it up. Welcome to poverty for a generation.
What do expect from a WEF waif? In ze future you vill own nottink und be happisch!