The government has learned to use QE to fund the coronavirus crisis, which is all well and good except for the fact that there are significant wealth inequalities arising as a result as some in the population save substantial amounts. If we are to prevent runaway asset inflation arising a way to use those savings has to be found and they have to be used to fund constructive activity. I outline some new thinking on this issue in this video. There is much more thinking to do in this area if social justice is to exist after coronavirus.
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Hi Richard is there any way I can access text versions of your video messages. I much prefer to read as does my partner. We do the same with Ted talks as they provide a text version. No worries if not as we will continue to enjoy your work. Thanks.
Sub titles can be turned on but organising transcripts takes too much time
Sorry
Further to this, the Treasury says “The welfare cap is one of the government’s fiscal rules. It maintains control of welfare spending. To ensure that changes in inflation-linked uprating assumptions will not increase pressure on the welfare cap or create headroom within it, the impact of changes in inflation assumptions on spending within scope of the welfare cap will be excluded from the welfare cap.”
That sounds like the government is going to fix the welfare budget and not increase it in line with inflation. Is this correct? If so, the effect on welfare recipients is likely to be harsh.
I will have to look into that
The welfare cap is in its very nature a Neocon tool to prevent the poor or unemployed or sick from having a decent life.
It’s a complete fabrication of household economics and the mantra of people who have no idea how the economy really works.
We are arguing over the wrong things…. Spending caps, Inflation uprating, fiscal rules…. Complete economic twaddle.
This government like any other can create as much money as it cares to within certain bounds.
https://youtu.be/DNCZHAQnfGU <~~~~this is where the arch Neocon Economist tells it like it is……. It's possible with the political will. The Tories only have the political will to give money to their buddies and screw the rest of us.
Japan has been ploughing money into their economy for 25 years and still can't get inflation…… Game over when we realise what's going on.
Note too that the Starmer led right-wing Shadow Government retains an automatic fiscal rule.
Fiscal rule = Fiscal fool.
Agree totally with this post.
At the moment with all the subsidies our politicians are very focused on Furlough and Business Loans (i completely agreed with the point that these loans wont help LT cashflow) with no real thought for what happens next. 2021 and 2022 will tell us which businesses survive. I think many have really underestimated how this will completely change our economy (and in many cases accelerate the inevitable with Globalisation and Tech advances) and without proper innovation and strategic investment those most vulnerable will be the ones forgotten. The Tories made a big song and dance about “Green Industrial Revolution” but with their obsession with balancing the books it’s hard to believe investment in job creation is high on the priority list.
My other concern is with the flexibility of home working for those in medium to large company’s. Depending on the type of work if someone can do it at home in the UK can it be performed at a Shared Service for a fraction of the cost. Again this often penalises those in middle to low incomes and our public services need to be properly financed to help deal any benefits or support up skilling – our colleges are massively under funded who maybe the first go to in up skilling.
I like the thought of having gilts and ISA’s where funds are directed towards Green Investment and would also like to see some support for entrepreneurship – perhaps another way to entice people to invest in these would be through reporting on how funds were used to support this.
I will keep thinking about this – because politicians are asking me to