UK economy.

[Frnc]

Austerity reduces the spending power of the bulk of the population. It puts people on the dole, so reduces taxes paid, and increases welfare payments. Knock on effects include more demand for the NHS and other services. And less spending power impacts businesses.

Clearly Argentina never really recovered after 2001. Their economy did improve a bit, for a while, but they still have a huge IMF debt and 40% living in poverty.

That forum calling Argentina socialist is not right. From 2015-19 the president was Mauricio Macri. Wiki says "he identifies himself as a liberal and conservative on the Argentine centre-right". The current president is Peronist (centre left), but the Peronists lost seats in the last election.

[Frnc]

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???

It depends what you borrow for. If you borrowed on fixed a rate to buy property in the past, you'd have made a good investment. If the government borrows to create jobs doing useful things eg putting up solar panels or wind turbines, or even better insulating our houses, they'd be stimulating the economy, getting more tax and paying less benefits (not that much is spent on unemployment benefits these days, but I think quite a few low paid workers get some benefits), and improving our infrastructure. And lowering our energy bills.

[jennyjj01]

I really have no idea what the right government spending policy is, Right/Left Trickle down or up, Though I have some opinion, I'll hold it in.

I'm absolutely for government to invest wisely in useful things like energy production and conservation and infrastructure.

What I do think we need to consider is the impact of the massive borrowing on we individuals and families.

We can do nothing about government policy short of campaigning, protesting and voting... But not here.
We can prepare for if protests get ugly. Those are practical preps.

From stagflation to inflation, we see it happening and need to cope with it. Individually 'Investing' in our reserves and resources. Buying what we should buy, when we should buy it and investing our cash where it's treated best.

[Frnc]

This'll make you laugh
https://www.independent.co.uk/news/uk/p ... 76258.html


"who once employed Mr Kwarteng as a consultant"

You couldn't make it up!

[Frnc]

I remember back in the 2008 crash speculators were betting against their own companies!

[jansman]

Interesting comments.However, I must be honest that my original post about Argentina and the book about their 2001 collapse ,that I am re - reading ,was really that such a situation may occur here too , given that we are now ( apparently) in the top ,or bottom ,c#ap economic situation.

Personally,I don’t care about which government can do this/ that/ the other / etc. I am more concerned, or rather interested, in how people will deal with a collapsed economy. Forget government intervention , it’s how we survive if it all crashes - and to me,that’s possible. Just because we * used* to rule the world , we don’t now!

Several comments I have seen have called us ‘The New Sick Man Of Europe’. If we get that way,then it may be possible that there’s no benefits,pensions,even NHS - or certainly very reduced.Mass unemployment ,poor food and energy supply could well be there too. Just because we are UK doesn’t mean that our society cannot crash!

I should have labelled the post a bit better!

[Vitamin c]

I wonder just how long liz truss will last and how do they get away with tory party members vote for new pm not us.

[Kiwififer]

I wonder just how long liz truss will last and how do they get away with tory party members vote for new pm not us.

Next year. There’s already letters in to the 1922 committee according to the National.

The rumour is that she will be replaced by Johnson. That would be courageous as they used to say on Yes Minister.

[diamond lil]

Agree with you jansman on how far things might go here. Never for one minute thought that book about Argentina would be relevant here... just goes to show

[Frnc]

it may be possible that there’s no benefits,pensions,even NHS - or certainly very reduced.Mass unemployment ,poor food and energy supply could well be there too.

Then you'd be looking at a pre-revolutionary situation. Or possibly a fascist one. Fascism is a weapon deployed to stop a revolution from happening.
How would we survive? Very difficult! I'm counting on my state pension in a few years.