To wonder why Rishi is continuing to throw out money?

[MiaMarshmallows]

Just reading now about all these different sectors who are going to be getting an extra boost. Isn't this all just contributing to the borrowing and meaning that we will be paying this back for longer and longer?
I know it is needed to help get businesses up and running but he does seem to be throwing money around like paper confetti?

What's the alternative though? Just letting all the businesses tank isn't good for the economy either.

I get that, just think people are underestimating the recovery from all of this continuous giving out of furlough, grants and what not. The final number will be astronomical.

Probably cheaper than a long term unemployment bill and all the additional costs associated will ill health, house repossession and despair that brings.

I am sure he has done his sums. Or do you think internet posters are more qualified to make this call?

It's all on the World Economic Forum as to what globally their intentions are. The G7 summit in Cornwall in June will be discussing this. I

It's just delaying the pain and keeping people lulled into blissful ignorance

He's 'throwing money around' because it's cheaper than letting the economy tank.

Isn't this all just contributing to the borrowing and meaning that we will be paying this back for longer and longer?

Potentially. But as that’s going to be happening anyway, it really makes little difference. A stimulated economy will help in both the short and long term.

@MiaMarshmallows

I get that, just think people are underestimating the recovery from all of this continuous giving out of furlough, grants and what not. The final number will be astronomical.

People are not 'underestimating', they understand that without major public sector investment we will be even more fucked. The chancellor is actually making a pretty weak investment.

Biden has just approved a 1.9 trillion dollar stimulus package.

I know absolutely nothing about how finance works so tell me like I'm 5
If all the borrowed money isn't real as in it's not an actual heap of cash and if all the countries have borrowed this unreal money, can't they just decide that there's an amount of this unreal cash that they don't have to pay back?

Interest on say 15yr government securities is rock bottom. Madness not to borrow to invest

His plan to artificially prop up the price of property is so wrong. There's a reason why banks don't want to lend on 5 and 10% mortgages. They think property prices in some areas will fall. These new Ponzi scheme buyers risk getting into negative equity with the government injection of deposit.
Property in this country is the biggest MLM we have.

Put it this way... its will be easier and quicker for a stimulated economy to pay back say 500 billion pounds (purely an example figure) than it is for tanked economy to pay back 300 billion pounds

@Sparrowcrane

It's just delaying the pain and keeping people lulled into blissful ignorance

I doubt anyone is blissfully ignorant to the hell we are facing anymore.

Yes the first time buyer promise is a concern imo

@Oversize no, even made up money is still real money, and governments still need credit ratings. Part of the repayments will be to other economies and some will be on government bonds (so people like you and me will invest in them, and we wouldn't fancy the government just deciding it doesn't exist). The other economies will feel the same way. Plus if our credit rating gets downgraded we will be even more screwed when the next big crisis comes along if we can't even borrow our way out of it - imagine if no one had lent us the money to do furlough?
Normal debt is the same principal - I borrow from the bank and pay them 3%, you put your money in your savings account earning 0.5% and the bank lends me your money and calls the 2.5% profit. And probably your savings were your wages not cash from under your mattress, and my debt goes out on a bank transfer to pay for my new car - so no cash at all, made up numbers if you like, but totally real still.
Does that help?

@Oversize, sorry, I should have added - most of our national debt is actually held within the UK by UK investors such as banks, investment companies and pension schemes. If you have a pension of any sort or any investments you may well own a share of it yourself. Only 20% belongs to overseas investors.

This website explains it nicely www.economicshelp.org/blog/4098/economics/who-does-the-uk-owe-money-to/

Without a doubt, we will all be paying this back for years.
He doesn't seem to have a proper plan as to how to balance things back out, just throwing money around as I said like confetti.
I know it is necessary in some cases but I do think that some people are unaware that this all comes at a price.

Sounds like his plan is to claw it back from the self-employed and online businesses - those of us who've had no help whatsoever during the pandemic.

@DianaT1969

His plan to artificially prop up the price of property is so wrong. There's a reason why banks don't want to lend on 5 and 10% mortgages. They think property prices in some areas will fall. These new Ponzi scheme buyers risk getting into negative equity with the government injection of deposit. Property in this country is the biggest MLM we have.

This

Yes the property giveaways are bonkers when many parts of the country have overheated markets.

Ok some of the policies are necessary but look at shit like 'Eat out to help out'. Even at the time that seemed crackers.

[quote Hollywhiskey]@Oversize, sorry, I should have added - most of our national debt is actually held within the UK by UK investors such as banks, investment companies and pension schemes. If you have a pension of any sort or any investments you may well own a share of it yourself. Only 20% belongs to overseas investors.

This website explains it nicely www.economicshelp.org/blog/4098/economics/who-does-the-uk-owe-money-to/[/quote]
ooh, interesting link.
I used to look up the stats of which countries owe money to which countries. There used to be interesting pie charts. But cant find it any more. You wouldnt happen to have a link to that as well, would you?

The mortgage promise isn’t just for FTB only, it’s for anyone who wants to buy a non-new build property under £600k

It’s almost like the Tories do have a magic money tree after all.... someone should have told Theresa.

But what is the alternative? These circumstances are exceptional and faced by countries the world over.

Surely it's worse to let companies go under and for unemployment to go up considerably? Then we really will be in the shit

@MiaMarshmallows

I get that, just think people are underestimating the recovery from all of this continuous giving out of furlough, grants and what not. The final number will be astronomical.

Do you really think that the chancellor of the exchequer is underestimating the recovery? I would expect that, out of everyone, he has a pretty good idea of what that final figure will be.

Maybe the everyday person is underestimating it, but what are they to do about it?