UK economy.

[jansman]

It seems that the UK economy is one of the 20 worst ,globally, according to this:

Exchange rates: Why has the value of the pound tumbled? https://www.bbc.co.uk/news/business-49179234

To ( me) one of the ‘members’ of that 20 - worst, is Argentina. Ironically,I started re- reading ‘ Surviving The Economic Collapse’ by Fernando * Ferfal* Aguirre. That is a book about the collapse of Argentina in 2001.

In my humble opinion,if we are in the same economic * club* as Argentina right now, then we ain’t in a good place!

[pseudonym]

The pack turns on the weakest to make themselves stronger.

Sometimes it backfires and the weak bite back.

[Frnc]

Argentina was one of the richest countries in the world.

Governments after WW2 were dominated by Peronism through to 1989, with periods where the military took power.

From 1989 and through the 90s, like the UK, they had neoliberal (right wing) governments and eveything was privatised. The economy tanked, crashing around 2001.

They brought back Peronism around 2002, and the economy began to recover. Peronism is more state interventionist.

[Frnc]

Note the increase in bond yields from just over 1% to over 4% on the graph (in fact it it was 4.5% yesterday). This means the government has to pay £ billions more in interest. At 7% the economy is unsustainable.

[Frnc]

The reason the market lost confidence in the UK economy is because of the mini-budget. Cutting tax for people on over £150,000, and raising the cap on banker's bonuses makes no sense even to the capitalists. Also the 1p off general tax rate has to be paid for. It might make sense to some, but it's still viewed by most economists as inflationary and another expense for the government.
Truss's theory is that the economy will grow. But giving money to the rich won't work, in my opinion, I think they'll just put it in their savings.

[Kiwififer]

Oh I think she’s played a blinder, I mean trickle down economics has worked every time it was been implemented before….

I am actually stumped at what smiley to put after that as there isn’t a ‘let’s start a revolution’ one.

[Nurseandy]

Some humour but edging into political comment......

[jennyjj01]

Oh I think she’s played a blinder, I mean trickle down economics has worked every time it was been implemented before….

I am actually stumped at what smiley to put after that as there isn’t a ‘let’s start a revolution’ one.

Hard to avoid being political when governments take radical actions. The latest mini-budget was radical. It will have impacts on US, good or bad.

Making a comment on 'economics' more generally, will the extra money given to millionaires get spent at Wetherspoons, or Poundland or Home Bargain, or B&M, helping to keep them in business. Or will it be spent in Harrods or on luxury yachts, or Rolexes? I.e. s(p)ent abroad.

Alternatives to 'Trickle down' are 'Trickle up', and 'Middle out'. Worth googling.
Now, we just have to figure out what it means for our future and how to prep for the effects. Methinks, time to spend on some imports while I can still afford them.....

Ah! that wasn't the plan, was it?

[Frnc]

Oh I think she’s played a blinder, I mean trickle down economics has worked every time it was been implemented before….

I am actually stumped at what smiley to put after that as there isn’t a ‘let’s start a revolution’ one.

Hard to avoid being political when governments take radical actions. The latest mini-budget was radical. It will have impacts on US, good or bad.

Making a comment on 'economics' more generally, will the extra money given to millionaires get spent at Wetherspoons, or Poundland or Home Bargain, or B&M, helping to keep them in business. Or will it be spent in Harrods or on luxury yachts, or Rolexes? I.e. s(p)ent abroad.

Alternatives to 'Trickle down' are 'Trickle up', and 'Middle out'. Worth googling.
Now, we just have to figure out what it means for our future and how to prep for the effects. Methinks, time to spend on some imports while I can still afford them.....

Ah! that wasn't the plan, was it?

Well the rich might buy a new Rolex, but the money makes no difference to the super-rich. Most of their money is hoarded, or invested in property. In fact it will be foreigners buying property here, while the £ is low.

[jennyjj01]

Now, we just have to figure out what it means for our future and how to prep for the effects. Methinks, time to spend on some imports while I can still afford them.....

Ah! that wasn't the plan, was it?

...In fact it will be foreigners buying property here, while the £ is low.

Pushing up the price of expensive property... In turn pushing up the price of all properties... I'm not seeing how that really helps to put food on my table. But then what do I/we know.

Maybe we need to get back to the original post and theme, being in the same basket as Argentina. There's lots to study and learn from Argentina and what broke-fixed-broke their economy. More to the point lots to learn how the population cope.

Argentina is broke at the moment under burgeoning trickle up borrowing ...
And now the UK is proposing massive trickle down borrowing...

Argentina’s economy has collapsed. Around 57% of adults in the nation are currently unemployed. The Socialist nation has programs in place to compensate, costing the country around $6 million daily. However, socialism no longer works when you run out of other people’s money. July’s inflation report showed an uptick over 60%."

So they are broke because they are over-borrowed.

It rather looks like the UK is going to over-borrow, too.

So it's maybe not about where the money is getting spent, but about the very fact that the borrowing is done in the first place???

Whatever the government does, it ultimately needs us to create and export stuff of value. Maybe import and consume less and pay down debt.
Productivity and some austerity? Neither easy or popular.

Dunno how to do that or who can create the required policies.

But, we as preppers can implement those on an individual level, with our own good housekeeping.