Inflation, Inflation, Inflation...

cells

Conrad wrote: »

Give me the new flourishing economy. Real enterprise, real jobs, real dignity, not the imbalanced import, slave wage economy that benefits holders of capital at the expense of a rentier majority.

You say the above or one of its derivatives often its so so absurd.

Do we not have real jobs today and dignity today?

What nonsense about slave wages we are one of the highest wage economies in the world. Real wages are also higher now than any other generation before it.

Also the idea that the holders of capital benefited at the expense of renters of capital is silly too. One of the largest chunks of capital is savings in banks and one of the largest groups of renters of capital are the renters of bank deposits. The capital holders went from receiving 6% rent to receiving less than 1% rent now. People who rent homes privately (a minority of households) have in most regions seen static rents for a decade. Government bonds have also gone from ~6% to 0% now. In many ways those with capital have been screwed not renters. Also this is a fundamentally a children per woman impact as women have fewer children you will find more and more capital flow to the next generation

I thought Hamish always said inflation was good for reducing debt?

wage inflation not cost inflation

Just watch now as British supermarkets start switching to more British produce

Lets hope so but most of it is produced in the UK anyway

michaels

We are where we are with Brexit. Can we not just discuss whether the uptick in inflation (driven at least initally by increases in import prices) is a god or bad thing for the economy overall? The inflation targets in most developed countries of about 2% would seem to suggest that undershooting at 0% or less is less than desireable and there is of course the Japanese example of prolonged low inflation. Plus what happened in 2012/13 when keeping nominal GDP increasing (inflation hit 5%) whilst interest rates remained close to zero allowed the UK to keep its debt/GDP ratio under some semblence of control.

Is it impossible to discuss economics on this board anymore without it being a brexit bunfight?

Conrad

cells wrote: »

You say the above or one of its derivatives often its so so absurd.

Do we not have real jobs today and dignity today?

What nonsense about slave wages we are one of the highest wage economies in the world. Real wages are also higher now than any other generation before it.

Also the idea that the holders of capital benefited at the expense of renters of capital is silly too. One of the largest chunks of capital is savings in banks and one of the largest groups of renters of capital are the renters of bank deposits. The capital holders went from receiving 6% rent to receiving less than 1% rent now. People who rent homes privately (a minority of households) have in most regions seen static rents for a decade. Government bonds have also gone from ~6% to 0% now. In many ways those with capital have been screwed not renters. Also this is a fundamentally a children per woman impact as women have fewer children you will find more and more capital flow to the next generation





wage inflation not cost inflation



Lets hope so but most of it is produced in the UK anyway

Cells did you watch the Labour and Tory conferences?
The great theme through both was on how to stem the great wealth and opportunities divide, the great discontent that lay behind Brexit. Everyone from Pickety to Paul Mason, David Davis to Corbyn have been constructing a narrative on how we return good jobs back to Britain, how to get wages rising again after years of pause.


Much of political discourse centres around our imbalanced economy based on mass imports, debt, too much reliance of Banking and services, not enough focus on an industrial policy and exports


We want a flourishing of manufacturing, it's not good enough throwing up your hands and declaring these things are too difficult.


We want a flowering of SME's and John Lewis style corporates, as Theresa May was at pains to state, a move away from the relentless focus on only the bottom line, where those at the top get ever richer, and the workers ever poorer with insecure terms - the Amazon economy you seem to think was so good

cells

Conrad wrote: »

Cells did you watch the Labour and Tory conferences?
The great theme through both was on how to stem the great wealth and opportunities divide,

it is an impossible task as the differences start at birth. How do they think they can give equal opportunities to a child born to drug addicts or abusers vs a child that is loved and tought by its parents. Its not even all about money

the great discontent that lay behind Brexit. Everyone from Pickety to Paul Mason, David Davis to Corbyn have been constructing a narrative on how we return good jobs back to Britain,

its just empty nonsense what are the good jobs that have been lost?

how to get wages rising again after years of pause

lower regulations and wait for the next upswing in tech that is going to hit from 2020. A vote wont make us rich if it was that easy we would all vote for it and no one would ever be poor or hungry

Much of political discourse centres around our imbalanced economy based on mass imports, debt, too much reliance of Banking and services, not enough focus on an industrial policy and exports

thats just all nonsense

We want a flourishing of manufacturing, it's not good enough throwing up your hands and declaring these things are too difficult.

you have it completely wrong, manufacturing is alive and well but it will just shrink to irrelevance. In the same way that we produce much more food today than we did 100 years ago but growing food is such a small part of the economy we all know and understand that trying to expand it is pointless. I used to work at a steel plant which expanded production 3 x from the 1980s to the 2000s so a huge expansion in production. At the same time the forceforce shrank more than 90%. Why can you not understand this? Even if we could expand manufacturing 3 x it will be along side the backdrop of losing 90% of the jobs in the sector

Its not about difficult or easy its about a sector that is going to get so automated that there are little to no jobs in it. So by all means expand it 3x but know that the workforce is going to fall 90% irrespective of your quantity expansions

We want a flowering of SME's and John Lewis style corporates, as Theresa May was at pains to state, a move away from the relentless focus on only the bottom line, where those at the top get ever richer, and the workers ever poorer with insecure terms - the Amazon economy you seem to think was so good

all nonsense sadly you cant see it

StevieJ

I thought Generali was back

BobQ

StevieJ wrote: »

I thought Generali was back

Perhaps if enough people keep posting something about the continuing exile of Generali, they will get the message.

mayonnaise

BobQ wrote: »

Perhaps if enough people keep posting something about the continuing exile of Generali, they will get the message.

Nah.
People have enough of experts.

wotsthat

Conrad wrote: »

Just watch now as British supermarkets start switching to more British produce

More likely they'll switch to German retailers who operate on lower margins.

British produce is expensive so unless you're expecting significant inflation the consumer will probably be better off just paying more for imported goods.

CLAPTON

wotsthat wrote: »

More likely they'll switch to German retailers who operate on lower margins.

British produce is expensive so unless you're expecting significant inflation the consumer will probably be better off just paying more for imported goods.

no chance of 'normal laws' of economics applying if it conflicts the the Europhile point of view

wotsthat

CLAPTON wrote: »

no chance of 'normal laws' of economics applying if it conflicts the the Europhile point of view

If imported produce increases in price and the British produce is still more expensive what does your economics textbook tell you about how a consumer might react?

A positive might be that it forces retailers to be more competitive to help mitigate price increases but as marmite is £2.35 in all of them I wouldn't be holding my breath.

There's almost certainly going to be more expensive food/ grocery shopping on the way as a result of the Brexit vote triggering a devaluation of Sterling (for whatever reason). You could argue there won't be inflation or argue it's worth it but please stop making silly non-points.