News1 min ago
I'm No Economist But...
42 Answers
I don't see how ramping up mortgage rates for a few, which might filter through for some as increased rents, will reduce inflation.
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//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
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
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
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
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.
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.
//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.
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.
