Economy Home Truths

[Magschoice]

Just read this article:

Former Chancellor Lord Hammond has said the government & the prime minister must risk unpopularity and tell "some difficult home truths" about the state of the economy.

“That (cost wise) it has been the equivalent of fighting a war. The effects of which are going to be with us for a very long time”

“There will continue to be a rise in unemployment post pandemic, which is already at the highest level it has been since 2015.”

The government are 2 trillion in debt. I fear massive job losses and spending cuts. I do think the housing market will hold up though, to a certain extent

What are everyone’s thoughts?

[quote Flyonawalk]@StealthPolarBear I think I misunderstood - you are making the point that we need a money-finding approach to restore children’s futures? I agree but have little faith that children will be a priority unfortunately.[/quote]
Yep, agree

@Malteser71

My MIL (76) is happy to report that she has £230,000 in the bank. She doesn’t need it - has a healthy pension, owns her own home. ‘Likes to know it’s there.’

Why is this ok when the economy is fucked?

The same people who will be cutting benefits to diasabled and the less fortunate, as well as taking huge axes to public services and the NHS to pay this back will have millions in the bank, multiple properties, huge pensions, jobs for life (MPs)

Why is that ok?

We are starting a pension for the kids otherwise they'll never retire!
There will be added stealth taxes on things you can't deny, fuel, salary, houses etc.

We pay taxes we die we pay more taxes when dead.

Just salary sacrifice into a pension, persuade children to live overseas when they can.

What else can you do?

No shit Sherlock.

Lockdown’s coming home to roost.

The whole world is in the same situation, global quantitative easing is the only sensible solution.

I hope they don’t resort to more austerity (they will)

They need to tax the people that can afford it (yep, higher earners, pensioners, property owners) It’s all well and good saying that you have “worked all your life” and “paid in” but unless you are a higher earner throughout, you would have been a net taker rather than contributor.

Given we have destroyed the economy to keep the older people safe, I think it’s time for them to step up and put their hands in their pockets.

@Crazycatlady83 do you think the tories will tax where their main body of votes (older/wealthy) comes from?
there will be tax rises all round though I guess.

@Stovetopespresso - nope! A girl can hope though!

But I hope as a society those protected the most (both medically and financially) will consider it the responsible thing to do, to pay more! They won’t though because we are a inherently selfish species! BTW I am a higher earner, as is my DH and we own a property - not a boast, I have skin in the game and I accept that I should pay more so I “practice what I preach”. I really do think it would be unconscionable to cut services (which have been massively stretched over the pandemic) or hit the lowest earners further (who have had to go out to work in the pandemic to make sure our supermarket shelves were stacked, hospitals cleaned etc) or cut benefits for the unemployed / those whose businesses have been destroyed by lockdown all in the name of protecting other people.

Also it really makes me uncomfortable to accept that the bill will take decades to pay off. Our children really have suffered enough!

@Jbck

The whole world is in the same situation, global quantitative easing is the only sensible solution.

Europe and USA yes - they're badly affected and in mega debt because of it. Not the "whole world" though. Australia and NZ have insulated themselves so far. Russia, China, Africa havn't really been anywhere near as badly affected economy wise so far either.

I see the envy and ageism have made an early appearance

Yes, seniors will have to pay more and I'll be amazed if the pension triple lock doesn't change, along with winter fuel payments, the retirement age, care funding, inheritance tax and much else

But this isn't a case of "It should only come from those older/richer/posher than me" ... everyone's going to be affected, though no doubt many will insist they should be exempted

@Puzzledandpissedoff

Or alternatively they could just go on with printing money "quantitative easing"

Hyperinflation, anyone?

Wheelbarrows for carrying all that pesky cash, next to sell out.

Austerity mark 2 here we come, no surprise though

Wheelbarrows for carrying all that pesky cash, next to sell out

Home safes too, for all those converting their savings to cash so the Chancellor can't touch them - but at least you've explained why I couldn't get a wheelbarrow in Homebase today

It's not long ago we finished paying off WW2. Firstly, we all paid that without really noticing. It will be the same again. But also, did you notice any significant increases in spending by the government when that debt vanished? That should mean we can make similar type payments for this with the money they haven't spent on those repayments for all this time. Also, don't forget the "Brexit Bonus" we are allegedly due.

Thinking of an economy as a typical household isn't the way to go here, it just causes panic. There's always debt, it's just that this time it's more in your face so we're all more aware.

@Malteser71

My MIL (76) is happy to report that she has £230,000 in the bank. She doesn’t need it - has a healthy pension, owns her own home. ‘Likes to know it’s there.’

Why is this ok when the economy is fucked?

Err cos she earned it?

And, yes, we're fucked. To paraphrase George Orwell, some are more fucked than others.

There's an industrial revolution taking place, some will get rich and some will find their previous life washed away.

Plus the Wild Card...confrontation with China.

She didn’t earn it, actually.

Some people have done very well out of furlough, no childcare or commuting costs. Obviously I don’t mean people on mw.
In reality we’ll all pay more. I’m happy to - even though it grates slightly having worked/commuted throughout.

Well how did she get it, rob a bank?

@Puzzledandpissedoff it’s really not ageism to say that I think a pensioner with two houses, a comfortable wage and 3/4 foreign holidays a year (my own parents and PIL as an example!!) should pay before cutting the benefits of a single mother who is struggling to feed her family because she lost her job due to lockdown.

It’s not envy, I have said higher earners and home owners should pay (the group I full into) I don’t want austerity to be the “go too” solution as it was in the last recession.

its not looking good is it. shame Kier Starmer's post-war rebuild-style message isn't landing. I'm not sure the uk is very united atm. no social mobility, too much encouragement to consume and the wealth gap is huge. the social contract is broken imo.
rant over.

You think there are only two ways to obtain money, earn it or rob a bank?

She inherited it.

Have you heard of that?

(And we will inherit it after her, though we also don’t need it).

@Crazycatlady83 I join you in being willing to pay more tax, it would be a struggle for us even though our income is good (high mortgage in SE, lots of kids, my career is shafted).
my in laws have had a much smoother ride imo.

[quote Jo99996]@StealthPolarBear we live in a short term world now politically.

Look at the pointscoring was done over the debt when the banks needed bailouts. They'll want to start "reducing the defecit" ASAP ahead of the next election, should one ever be allowed to happen.[/quote]

All the more reason it will be paid back over decades.

No party is going to make cuts to public services or raises to taxes so severe that they will be voted out at the next election.

Like a war, this will be paid back over decades.