Myth that Britain can’t afford lockdowns

[CallmeFP]

A telegraph article, makes for interesting reading.

@Fittata have you read the article and it’s comments on inflation?

It's borrowing really. The next generation will have to pay it back in taxes

Depends how happy we are about that really

All human reality is constructed and therefore an illusion of our own minds.....maaannnn.

Gin though that is real but not at this early hour...

Uk can only pay for lockdown by printing money. This causes inflation.

Inflation is awful case and point Venezuela. Inflation is low atm because oil is cheap, next year will be interesting.

Maybe you should ask the people who have lost their jobs because of it...

@NickVanDyke

Uk can only pay for lockdown by printing money. This causes inflation.

Inflation is awful case and point Venezuela. Inflation is low atm because oil is cheap, next year will be interesting.

This is a very simplistic view . I am no economist but my understanding is that in a time of very low interest rates ( which we have) , hyper inflation as an effect of printing money ( or quantitative easing as the bank seems to call it now ) is much less of a problem.

It would've been so much cheaper if at the start we'd given the travel industry a financial support package - and closed the borders (except for essential travel).

Failure to contain was (and will continue to be) a false economy.

my understanding is that in a time of very low interest rates ( which we have) , hyper inflation as an effect of printing money ( or quantitative easing as the bank seems to call it now ) is much less of a problem.

Yes and no. First hyper inflation is 50% increase per month. Doubtful U.K. would actually go into hyper inflation. But even regular inflation of 5% a year would be enough to see many workers who have taken Covid pay cuts start to have a dramatic decline in ability to pay for essentials.

But to counter inflation, you need high interest rates to reduce the money supply by encouraging saving instead of hoarding of goods. So having low interest rates now is a good thing because BoE does have the tool of raising interest rates moderately to counter inflation.

You're all crazy. The Uk is broke, assets are owned by foreign parties, we don't have much to offer in terms non-financial trade. And a massively entitled snowflake population that prone to being manipulated. It's a house of cards.

Money is just oil in the machine. Apparently you can't be bankrupt is your own currency.
Tax payers money is just an emotive term but it used to kerb inflation. Take oil from the machine. How its taken is a political choice.

In 2008 the 000s on the screen went to the banks. This time it's going to furlough which people are spending back into the system.

The sad part about the economy is the jobs lost to the individual not the National debt myth.

it’s only real because we believe in it

Someone has been reading ‘Sapiens’ by Noah Harare.

Such a great book.

@Figmentofmyimagination

it’s only real because we believe in it

Someone has been reading ‘Sapiens’ by Noah Harare.

Such a great book.

I actually have read that..... well started it, didn't quite make it all the way through.

🤦‍♀️ Yes currency depends on "faith", but money is real, and currency does have value. It isn't "magic". Yes we could "print" money, but immediately all the other pounds are worth proportionately less. Life savings are eroded to nothing though such folly.

Our public services aren't paid for though "printing", and imaginary money. They are paid for through tax revenue. The true magic is in £1 being turned over multiple times, though one transaction after another, a cleaner is paid, they buy groceries, the grocer gets in an electrician, the electrician gets a haircut, the salon has their premises painted, the painter goes out to dinner, the restauranteur buys a book. Each time the £1 turns over, at least 20% of £1 goes to HMRC in VAT revenue. £1 in the pocket becomes £7 of wealth generated amongst the community - and £1.20 of VAT goes to HMRC. Plus income tax.

That is what pays for your NHS.

Lockdowns stop the multiple turnover of £1. £1 remains in the pocket, as £1 and only 20p goes to HMRC. In this way, lockdown ruins the nation and, no, the nation cannot afford lockdown.

On lbc the other night.