I'm No Economist But...

[Hopkirk]

I don't see how ramping up mortgage rates for a few, which might filter through for some as increased rents, will reduce inflation.

[JimF]

On the contrary - the people in control know exactly that none of the economic policies that they bring to bear will have the slightest effect on them personally. That is the problem.

[ToraToraTora]

Right oh! Hoppy knows better than the guvnor of the BOE!

[Hopkirk]

Perhaps I do!

[JimF]

You really don't...

[Hopkirk]

Are wages going up because people are asking for more?
More likely it's because employers can't get enough staff and have to put up wages to attract them.

[Peter Pedant]

Hoppie is correct
and this is bad as well ( you need increased output to match the increased wages) and drives inflation

I was surprised - fewer people have mortgages than 30 y ago and have more 5x whereas in the good old days of 12% 1980 we were allowed 2x

[Peter Pedant]

Right oh! Hoppy knows better than the guvnor of the BOE!

foo! there are a few people who know better than the BoE - such as Rishi ( who is tray rishee, remember) - and say he did too little too late

but hey Hoppie, if TTT says you are a twit - then you must be!

[bobbinwales]

//If people don't do home improvements there is less work available//
Yes, thats a reason why there doing it... to reduce demand and spending. Yes it might lead to some job losses or reduced income for some trades but it will reduce demand and inflation. Its a blunt instrument yes and affects some more than others (eg pensioners with savings arent hit) but its been the weapon of choice as TTT say's for the bank of england which is seperate from goverment control and is tasked with reducing inflation.

All country's have inflation close to ours and use interest rates.... it takes time.

I share your reservations though- they should look at big picture. Theres a risk yes of inflation coming down but then a recession, so goverment needs to keep an eye on the whole picture.
As you say we're not economists

[Peter Pedant]

as you say we are not economists

well the economists arent exactly doing a good job, are they?

[Peter Pedant]

oh come on

TTT says the bank of england ....... is tasked with reducing inflation.
yeah but no but - they arent ( havent ) are they? ( have they)

[bobbinwales]

er a bit like lockdowns didnt reduce covid deaths, same argument. Hur hur as you say. We dont know what inflation would of been if BOE hadnt increased bank rates but am sure it would of been higher.

[bobbinwales]

Some might say an easy way to cut inflation almost overnight is to reduce VAT.... but that would just give people more in there pockets and push up demand and so inflation back up.
Despite high mortgage rates there still seems to be a lot of busy pubs (all outside tables full on sunny days) and restraunts, airports and roads are packed... so maybe interest rates got to rise more

[Squitty]

if only we all had a MONIAC machine - there will probably be an app somewhere.
This video shows a simple overview if you have 5 mins to spare.

[bobbinwales]

yes am sure Treasury/BOE and economists have computer models that are even more sophisticated than moniac..

[douglas9401]

One thing I know about economics is that the reasonably well off hate to see the less well off get any kind of traction to improve their lot.
They are put on Earth to suffer and suffer they will, as long as the better off can have their Jaaaags, watches and a couple of holidays a year.

'I work damned hard for what I have' they lie.

[youngmafbog]

//One thing I know about economics is that the reasonably well off hate to see the less well off get any kind of traction to improve their lot.//

Lazy left wing politics of envy that is simply not true.

When the lower echelons are struggling then the whole country struggles.

Of course the biggest threat to the poorer in society is the ridiculous race to Net zero rather than a planned an achievable date. But as thats a libby/left policy (The current Tories are not proper Tories) no one os willing to note this.

[douglas9401]

That concludes the case for the prosecution.

[royfromaus]

Printing monopoly money during covid so people can sit on their *** and get paid has got us into this mess.

[naomi24]

// they lie. //

Most of them don't. I doubt you would want to do what they do to earn their money - even if you were capable.

[douglas9401]

If ever a comment merited a 'Hah!!' or even a 'Pah!' that's it, naomi.

You seem to know a lot about everything, shouldn't you be putting those skills to good use in the world of work rather that splitting your days between Answerbanking and flagpole polishing?