Stagflation anyone?

Discussion in 'Current Affairs, News and Analysis' started by sunoficarus, Feb 15, 2011.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. Well, that's another fine economic mess we're heading for.

    'Dear Dave,

    I'm getting no pay rise for the next two years while you let inflation run away.
    Trust me, with my real world disposable income falling faster than your credibility, I won't be spending on anything other than the essentials for the next 3 years.
    Still, not to worry Dave, with benefits linked to inflation, maybe the great unwashed will create that economic boom you're hoping for?'

    Mervyn King warns of inflation for next three years - Telegraph
  2. So what do you suggest? Let Labour back in?
  3. Cut taxes, cut benefits across the board by @25%.

    Benefit cuts will pay for the tax cuts, will also encourage the 9 million or so non employed to get a job and leave plenty of cash over to cut the deficit. Job jobbed.
  4. The current rate of inflation is almost entirely down to VAT and fuel duty increases.
    Cameron can cut inflation anytime he wants to. If he had the spine that is.
  5. Trans-sane

    Trans-sane LE Book Reviewer

    Which unfortunately would result in mass-riots, a revolt by the wooliest of the Lib-Dems, the coalition collapsing and a general election being called less than a year after the last one. And that would probably resulting in the two Eds (Milipeed and Balls) forming a government and the shit REALLY hitting the fan. Things have to be done gradually.
  6. Wordsmith

    Wordsmith LE Book Reviewer

    I think the 25% fall in the pound (pushing up import costs) and the general worldwide rise in commodity and energy costs might also have something to do with inflation.

  7. So, to appease the vast client state of non employed and welfare dependent, we're trapped into a system where the only people who will see their disposable income increase over the next 3 years will be non nett taxpayers, while the nett taxpayers see themselves become significantly poorer?

    This is the economics of the insane asylum!
  8. No, it means Labour won. What do you think they were doing for 13 years? This was the plan all along, and was quite concious.
  9. Trans-sane

    Trans-sane LE Book Reviewer

    Very likely yes. Especially as most of our goods are manfactured abroad and imported. And our trade deficit has been growing non-stop for my entire life...

    It is bonk economics. But the world of politics is not directly liked to any other world. It is only linked by public perception and frankly the public are the stupidest entity in existence. Currently we have the best government that could realistically be formed following the recent General Election. If it was just a Tory government things would be easier (and probably more sensible from a purely economic point of view). But its not. Its a coalitions with the Lib-Dems. And its the first time the Lib-Dems have been in government and so they see their role is to safeguard the "vulnerable" (often the lazy, stupid and useless but sometimes genuinely vulnerable). Shit happens. Suck it up cos just like me you haven't got any other choice.
  10. National Statistics Online - Inflation

    "Two of the main factors that had an impact on the January data are the increase in the standard rate of Value Added Tax (VAT) to 20 per cent and the continued increase in the price of crude oil"
  11. I do not understand people with the smore or less same opinion as yourself. (there's a few bookwizards around here so if you read this, can you enlighten me?)
    Ill ask the Question which i ask people who spurt out such bollocks.

    what is it we actually make and produce in this country that others buy from us and ergo we make money on?

    The f**kers took there last chance on the banks, they spent our money on chancers and now we have next to sweet FA.

  12. I have to agree to a large extent. Bit on the news today when I was munching... German economy different economic model... growth last year at 4% why ? cos they make stuff and invest in long term company growth thinking ahead with private money IN THE FIRM. Ie R and D not neglected. Also, the workforce are savvy to the whole of the business and realise that they all exsist in a competitive climatr... yes even daft Helmut the rivetter. Interviewed a very smug looking sausage muncher manager... said he sold more BMWs to China than in Germany last year.

    Real things, real world not spinning the wheel at the supercasino of the financial services "industry".

    I went off it all years back when I heard the word "financial product" wtf is that supposed to mean ? maybe Im just simple.
  13. Lots. But it could do a lot more.
    Food & Drink The single largest manufacturing sector in the UK, turnover in 2009 was £72.8bn In 2009, food and non-alcoholic drink exports were valued at £9bn, with the EU receiving 79% of all UK exports The sector employs 400,000 people and supports 7,000 food and drink enterprises The UK is the 8th largest exporter of food and drink and is the 4th largest in Europe.
    Chemicals UK chemical industry has a turnover of £57bn, with an 8.2% share of the global market 180,000 people employed in the sector, working in 3,000 manufacturing firms; of these, only 160 firms employ more than 250 people.
    Basic Metals & Metal Production Employs over 450,000 people in the UK, with an annual turnover of £38bn Contributed 11% to manufacturing’s total monthly economic output in July 2010, up from 10.2% in October 2009
    Transport Equipment Industry The sector accounted for 11% of total monthly manufacturing output in July 2010, however given the diverse nature and formation of the industry, it is comprised of many different sectors such as automotive manufacturing, aerospace (both civil and defence), and leisure marine engineering Over 500,000 people are directly employed in a sector where the UK has a global reputation in areas such as wing development and construction, motorsport, design and defence capability management. The automotive sector alone contributes 11% of total UK exports.
    Research & Development
    Research and development (R&D) has always been essential to manufacturing – if the UK is to compete with emerging economies and develop new technologies and low carbon industries, R&D investment will become even more important in the coming decades. Manufacturing currently accounts for 74% of total UK business spending on R&D, with this investment spread across a wide range of different industrial sectors.
    Given the R&D intensity associated with the sector, R&D spend in the pharmaceuticals industries accounts for over a third of manufacturing R&D investment, with electrical/optical sector in second place at 12%, and aerospace third at 11%.
  14. Nope. Just don't panic. What did inflation peak at after the last Labour government? 25% IIRC.

    Short Term:-

    No increase in welfare benefits at the budget. Nobody's getting a pay rise, why are the unemployed more deserving.

    ASAP, introduce the scheme to limit total welfare entitlement to no more than the average wage.

    Stop awarding Legal Aid for immigration disputes. If you've got a case, find a no-win-no-fee lawyer.

    Stop allowing the unemployed to refuse to take jobs.

    FFS STOP GIVING FOREIGN AID TO INDIA AND CHINA. The just spend it on astronauts.

    Stop paying women to have babies that they can't afford.

    Medium Term

    Grab the European Union lightly but firmly by its reproductive organs and tell it that it can't have £4 billion a year off us. If necessary start vetoing pay rises for Eurocrats and MEPs. Maggie managed it, why not Dave?

    Phase out incapacity benefit. If you can live off 60 odd quid a week, so can Sven/Whet. Being too fat to walk should not entitle you to a company car off the government.

    Long Term

    Rebalance the economy away from welfare and government jobs funded by heavy taxation. We haven't really been able to afford the welfare state since the 1960s. Successive governments have swept the problem under the carpet. If it's not addressed now, we'll end up like Iceland/Ireland/Greece etc.

    Simples. Now, for my next trick, world peace.
  15. Jimmy Carr came up with a good one on 10 o'clock live the other week: "Another issue in the news is 'stagflation', a conflation of the words 'stagnation' and 'inflation'....another example would be 'fucktastrophe'".