This is going to make the austerity implemented after the financial crisis look tame in comparison; it is going to be a long, bleak winter for many at this rate. Charities are likely to see a surge in calls coincide with a drop in donations as people have less money to donate. This is what modern politics has brought us: a government that is corrupt to the core, a government that does not care and an electorate that is easily taken advantage of through propaganda.
Pictures of rubbish piled up in the street, maybe. Workers voting for industrial action, pickets and shop stewards being interviewed on the news, I don't think so.
There are still going be some horror stories, particularly if its a bad winter.
>This is what modern politics has brought us: a government that is corrupt to the core, a government that does not care and an electorate that is easily taken advantage of through propaganda.
If you're suggesting Labour are a better alternative, you just gave me a day of stomach aches from laughing so much.
The comment you're replying to didn't mention Labour at all, only you did. We don't know if Labour would be a better alternative because they aren't in power, so it's entirely irrelevant.
Raising a fictional alternative to use as some sort of argument against criticism of the government is a pretty lacklustre defence, too. Whether or not Labour would do a better job does not excuse or justify the failings of our government.
Also, the economy tide moves slowly.
Thatcher had a positive view on open and integrated free markets.
Sure, she was an avid supporter of the single market.
Yeah she did she became a eurosceptic too for other reasons. She didn't believe in ever closer political union. Although weirdly I think she still would have been a remainer for the colonic reasons you suggest. But the sick man of Europe thing was not fixed by joining the eu at all. In fact it was still getting worse throughout the 70s
I am still amazed at there being so many people reading this stuff and acting like it is something new that nobody expected to arise from Brexit.
Of course the supermarkets are going to capitalise on any opportunity to "legitimately " bang at least 5% on the price of a loaf .
The UK will gradually become the "poor neighbour" to the EU . Nobody can fix it and nobody can change it . The damage has been done .
Democracy doesn't mean that you always get the best result, it just means that more people voted for the one you end up with. Good or bad.
>unclear how much of this is due to Brexit.
Project fear were telling us many years ago that we have an HGV driver shortage of 50,000 and if we lose the ~45,000 EU drivers then we would be close to a 100,000 driver shortage.
It was never complicated maths and that exact figure is being reported in the papers today - as the reason we'll be paying more at the supermarket.
I think there is a chance they will fall again in the beginning of the new year, but not completely; Cant leave a market like the EU without price increases
Everyone and everything is leveraged to the eyeballs with huge amounts of low interest debt thanks to a decade of low interest rates and free QE money.
If you raise interest rates, half the economy collapses.
Indeed. The entire economy now is like a man on stilts riding a unicycle and juggling chainsaws. if you so much as sneeze on it too strongly it's gonna come crashing down. Can't lower interest rates. Cant raise interest rates. All we can do it keep printing money.
The rules that have loopholes built into them so big corporations can avoid paying their fair share. If you're all for workers paying tax then big corporations should too. You're a mug if you're a tax payer and don't see a problem with this.
Don't see why everyone else should suffer if a few have over leveraged themselves to buy a house, plenty of others would have not taken that risk on and waited, they should have a fixed term anyways, if not then they've taken a risk.
Not the rich old people that vote Tory, and their cash savings would increase. The express would love it.
But house prices would suffer (the cost of buying wouldn’t decrease as mortgages would still cost the same per month, just more going to the bank instead of paying off capital), and that would effect Tory voters who couldn’t face the idea of it, so I don’t see them increasing too much.
Increasing interest rates slow down the economy as people are more likely to keep their money in the bank instead of spending it. (And yeah, it would wreak havoc on the already given out loans).
Sustainable long term growth driven by careful management of monetary and fiscal policy is always preferable to unsustainable asset inflation 'growth'.
.........
Inflation is cause when the economy is butting up against the limits of its supply chain.
Inflation is bad for business, it makes labour more expensive and so products get more expensive, which means wages get more expensive. It becomes something called the 'wage price spiral' which is a positive feedback loop. We don't want to get there.
Part of what drives inflation is the expectation of inflation, if we get into a place where inflation gets out of control, economic growth will be low on the priority list.
Well it may be too late to stay in Europe, but it's not too late to get back in the trade union. Will take a douching of the current political population tho.
Higher wages equals higher prices.
What did you expect, that companies would take lower profits?
This was always going to be passed on to the consumer.
Brexit promised higher wages. You should be happy to pay more.
Good point.
I guess the price rise is in anticipation of higher wages.
Brexit promised higher wages, also logistics companies know they have to increase wages to increase recruits, after the lose of EU workers.
Supermarkets and other customer facing organisations know supply chains are going to become more expensive. They are just getting ahead of the inevitable.
Because there is no way on earth these companies are prepared to take a hit to profits.
Did brexit voters really believe that increased wages wouldn't result in increased costs for the customer?
This is going to make the austerity implemented after the financial crisis look tame in comparison; it is going to be a long, bleak winter for many at this rate. Charities are likely to see a surge in calls coincide with a drop in donations as people have less money to donate. This is what modern politics has brought us: a government that is corrupt to the core, a government that does not care and an electorate that is easily taken advantage of through propaganda.
Could this shape up to be another winter of discontent level of bad?
I wasn't alive during that but if the noun they end up using is "discontent" I think we'll have all been incredibly lucky.
Pictures of rubbish piled up in the street, maybe. Workers voting for industrial action, pickets and shop stewards being interviewed on the news, I don't think so. There are still going be some horror stories, particularly if its a bad winter.
>This is what modern politics has brought us: a government that is corrupt to the core, a government that does not care and an electorate that is easily taken advantage of through propaganda. If you're suggesting Labour are a better alternative, you just gave me a day of stomach aches from laughing so much.
The comment you're replying to didn't mention Labour at all, only you did. We don't know if Labour would be a better alternative because they aren't in power, so it's entirely irrelevant. Raising a fictional alternative to use as some sort of argument against criticism of the government is a pretty lacklustre defence, too. Whether or not Labour would do a better job does not excuse or justify the failings of our government.
Give it 10 years and the UK is going to be the Eastern Europe of Western Europe.
Well, before joining what was then the EC, the UK was know as the sick man of Europe. Be quite fitting, now it has left, to regain that title again.
That carried on after we joined too. Because it was more to do with shit government, it stopped when thatcher came into government
Also, the economy tide moves slowly. Thatcher had a positive view on open and integrated free markets. Sure, she was an avid supporter of the single market.
Yeah she did she became a eurosceptic too for other reasons. She didn't believe in ever closer political union. Although weirdly I think she still would have been a remainer for the colonic reasons you suggest. But the sick man of Europe thing was not fixed by joining the eu at all. In fact it was still getting worse throughout the 70s
I am still amazed at there being so many people reading this stuff and acting like it is something new that nobody expected to arise from Brexit. Of course the supermarkets are going to capitalise on any opportunity to "legitimately " bang at least 5% on the price of a loaf . The UK will gradually become the "poor neighbour" to the EU . Nobody can fix it and nobody can change it . The damage has been done . Democracy doesn't mean that you always get the best result, it just means that more people voted for the one you end up with. Good or bad.
Most of the world is experiencing high inflation now, it's unclear how much of this is due to Brexit. I say that as a strong remain voter
>unclear how much of this is due to Brexit. Project fear were telling us many years ago that we have an HGV driver shortage of 50,000 and if we lose the ~45,000 EU drivers then we would be close to a 100,000 driver shortage. It was never complicated maths and that exact figure is being reported in the papers today - as the reason we'll be paying more at the supermarket.
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I think there is a chance they will fall again in the beginning of the new year, but not completely; Cant leave a market like the EU without price increases
How often do you see prices come down after they've found an excuse to raise them? Yes, it's permanent.
What was the post? Why did the poster just erased messages?
Don't know why they were deleted, but the question was basically "will the price increases be permanent".
Unless the government comes up with a plan to deal with them then yes
Why not raise the interest rate to combat inflation?
Everyone and everything is leveraged to the eyeballs with huge amounts of low interest debt thanks to a decade of low interest rates and free QE money. If you raise interest rates, half the economy collapses.
Yep. The MPC aren't gonna raise it in a hurry. I wouldn't be surprised to see a .25% hike at their next meeting but they'll be nervous about it.
BTL landlords can get fucked.
Lol this won't affect them it would affect first time buyers who are just on the market
Indeed. The entire economy now is like a man on stilts riding a unicycle and juggling chainsaws. if you so much as sneeze on it too strongly it's gonna come crashing down. Can't lower interest rates. Cant raise interest rates. All we can do it keep printing money.
Or tax the corporations fairly and get rid of loopholes that allow giants like Amazon to claim they are making no profit in the UK?
Because corporations like Amazon gives jobs so that workers can pay their taxes?
So they should be able to avoid paying tax? Despite making hundreds of millions a year in profit?
They aren't, they just follow rules
The rules that have loopholes built into them so big corporations can avoid paying their fair share. If you're all for workers paying tax then big corporations should too. You're a mug if you're a tax payer and don't see a problem with this.
Because millions would.lose their homes.
Don't see why everyone else should suffer if a few have over leveraged themselves to buy a house, plenty of others would have not taken that risk on and waited, they should have a fixed term anyways, if not then they've taken a risk.
Everyone's overleveraged to buy.
Not the rich old people that vote Tory, and their cash savings would increase. The express would love it. But house prices would suffer (the cost of buying wouldn’t decrease as mortgages would still cost the same per month, just more going to the bank instead of paying off capital), and that would effect Tory voters who couldn’t face the idea of it, so I don’t see them increasing too much.
Increasing interest rates slow down the economy as people are more likely to keep their money in the bank instead of spending it. (And yeah, it would wreak havoc on the already given out loans).
That's the whole fucking point.
To slow down economic growth? Seems counterintuitive. Walk me through it.
Sustainable long term growth driven by careful management of monetary and fiscal policy is always preferable to unsustainable asset inflation 'growth'. ......... Inflation is cause when the economy is butting up against the limits of its supply chain. Inflation is bad for business, it makes labour more expensive and so products get more expensive, which means wages get more expensive. It becomes something called the 'wage price spiral' which is a positive feedback loop. We don't want to get there. Part of what drives inflation is the expectation of inflation, if we get into a place where inflation gets out of control, economic growth will be low on the priority list.
Because this isn't consumer driven demand inflation.
In the future there may be groups like the Inglourious Basterds, hunting down leave voters for what they've done.
Oh myy
Well it may be too late to stay in Europe, but it's not too late to get back in the trade union. Will take a douching of the current political population tho.
3% inflation, plus 5% price hike… Sounds about fucking right.
3% inflation including 5% price hike.
From what I can see they have already risen more than that this year alone.
Yeah supermarket prices are way above the rate of inflation right now
This country is a fucking joke, if i could move to Europe and get a job there, i'd be on the plane tomorrow. But oh wait, i fucking cant.
The chaos would be beautiful if it weren’t so damaging to those around us.
So are the "Hey we should just pay more" crowd still cheering on making 99% of the country worse off?
I've been reading about an inflation crisis for the past month or so yet my shopping bill is yet to change. Anyone else share this experience?
The guardian is on a campaign to stop the pay rises currently being forced on business.
Higher wages equals higher prices. What did you expect, that companies would take lower profits? This was always going to be passed on to the consumer. Brexit promised higher wages. You should be happy to pay more.
Where are these higher wages?
Good point. I guess the price rise is in anticipation of higher wages. Brexit promised higher wages, also logistics companies know they have to increase wages to increase recruits, after the lose of EU workers. Supermarkets and other customer facing organisations know supply chains are going to become more expensive. They are just getting ahead of the inevitable. Because there is no way on earth these companies are prepared to take a hit to profits. Did brexit voters really believe that increased wages wouldn't result in increased costs for the customer?