Is the UK Economy on the Brink of Collapse?

Рет қаралды 753,555

Күн бұрын

Skip the waitlist and invest in blue-chip art for the very first time by signing up for Masterworks: masterworks.art/economicsexpl...
Purchase shares in great masterpieces from artists like Pablo Picasso, Banksy, Andy Warhol, and more. 🎨
See important Masterworks disclosures: masterworks.io/cd
0:00 - 2:00 Intro
2:01 - 5:00 Depreciation of the pound
5:34 - 7:38 Masterworks
7:39 - 9:18 Sanctions
9:19 - 11:50 Inflation crisis
11:51 - 12:46 Tax cuts
12:47 - 14:14 Energy price cap
14:15 - 16:28 Stability and confidence
16:29 - 18:05 Better alternatives
18:06 National leaderboard
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#Economics #uk #liztruss
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Пікірлер: 1 600

@EconomicsExplained Жыл бұрын

Skip the waitlist and invest in blue-chip art for the very first time by signing up for Masterworks: masterworks.art/economicsexplained

@Essah15 Жыл бұрын

Can you make a video about whether Masterworks is a bubble? Cos it kinda seems like it

@Daaaaaan Жыл бұрын

Yeah, seems a bit bubbly to me

@appleaday3868 Жыл бұрын

Thumbs down for being payed by and recommending scammers 👎👎

@JamieF148 Жыл бұрын

Seems like people plan on dumping once they get all these new people involved

@ajn2370 Жыл бұрын

What sets Masterworks apart from NFTs? Sure the art exists in a tangible sense. But what difference does that make really?

@JamieF148 Жыл бұрын

To say "the UK isn't having a good year" is a bit of an understatement 😅

@nathanaelsmith3553 Жыл бұрын

Suboptimal

@matomatic4599 Жыл бұрын

We're in a tad bit of a sticky situation alright, but don't worry I'm sure our next PM will last at least 2 months.

@tanjoy0205 Жыл бұрын

Clearly there are Truss issues especially with Government Bonds.😊

@solivares Жыл бұрын

well that’s why there’s a 20 minute video explaining that statement haha

@joemacdougall9205 Жыл бұрын

Skill issue

@lwkon3113 Жыл бұрын

My son has lived through four chancellors, three home secretaries, two prime ministers and two monarchs. He's four months old.

@themekfrommars Жыл бұрын

I've seen a comments identical to this in a few places. Are you very active or a bot?

@sheldonpetrie3706 Жыл бұрын

I turned 40 earlier this year, and as a Canadian had known no other head of state, or image on our bills and coins.

@stup4501 Жыл бұрын

@@themekfrommars Yeah it's probably horsesh*t but the underlying point still remains.

@aidan-4759 Жыл бұрын

Did u just steal what someone told Rory Stuart from the rest is politics podcast?

@pandaborg2466 Жыл бұрын

Hey the lettuce beat the new prime minister

@dancroft8387 Жыл бұрын

Could the UK kick off the next Eurozone crisis? Having watched the entire video I have no more idea about that than I did at the start, since the Eurozone had nothing beyond a handful of mentions early on suggesting that it faces some of the same problems, but then basically disappeared.

@Casmaniac Жыл бұрын

Strange video indeed. The pound falling and sanctions is bc of political issues, not economical, and the inflation, while technically an economical issue, is directly caused by war in Ukraine and post covid issues, which are global problems. I don't really understand what the point of this video is

@AlexFlodder Жыл бұрын

Eurozone crisis? There is no eurocrisis. The euro IS the crisis.

@coraltown1 Жыл бұрын

this channel Explains nothing, so no surprise.

@Casmaniac Жыл бұрын

@@coraltown1 I usually find his videos pretty interesting and well made. This one not so much

@gerhard7323 Жыл бұрын

Thanks for saving me 20 minutes of my life there.

@brianmathis5423 Жыл бұрын

If you're going to rerate countries on the leaderboard, can you include the year you did the rating? I.e. after "United Kingdom" add 2022

@RobinKerkhof Жыл бұрын

Good point. In 2032 the UK will most likely be far lower on the list then in 2022.

@Foogle6594 Жыл бұрын

@@RobinKerkhof Hopefully by then all of the old people who voted Brexit will be gone and the UK can push to join the free market again.

@HUEHUEUHEPony Жыл бұрын

@@Foogle6594 if you join EU, you have to integrate with the EU

@pixhammer Жыл бұрын

@@HUEHUEUHEPony I'm sure you're right your holyness

@v_cpt-phasma_v689 Жыл бұрын

@@RobinKerkhof probably not, as other countries particularly in Asia will grow massively in GDP, their GDP per capita and stability will remain low while their growth score will likely drop massively, UK will probably stay around where it is

@noahlewisbrown Жыл бұрын

The government didn't 'outlaw' energy prices they are paying the difference so the suppliers sell at market rate and buyers buy at the fixed rate.

@investorsam Жыл бұрын

So they are creating inflation to fight inflation. That's not going to end well...

@noahlewisbrown Жыл бұрын

@@investorsam it's a bad policy but it's better than legally fixing the price as EE wrongly claimed they did

@systemchris Жыл бұрын

Yes it's a subsidised price cap on consumer utility contracts

@NenYim Жыл бұрын

@@systemchris the consumer always pays, with more taxation or more federal debt, one way or another, we all end up paying.

@systemchris Жыл бұрын

@@NenYim I didn't say otherwise.... It's never money from nowhere... It's still in place until April, because it's to prevent people freezing to death in winter, a social cost - imo t'd be better to subsidize the first X kWh of energy with some direct cash so it only subsidizes low usage levels, whilst raising taxes a little bit to spread the recouping of it

@joemacdougall9205 Жыл бұрын

Anyone else sceptical of masterworks given that they advertise so aggressively

@jaylewis9876 Жыл бұрын

It looks like a legit business. They are probably driving an art bubble. Once everyone that wants art shares have invested, or current holders decide they need money for other things, values will drop and they won’t be able to claim such high returns. Meanwhile it makes sense for them to make the most of it

@simonk.2969 Жыл бұрын

Read the disclaimer and you will see why this can very easily be a scam.

@spaghettiisyummy.3623 Жыл бұрын

They clearly like Niche KZfaq users.

@runeodin7237 Жыл бұрын

The whole idea that art is a safe investment in the upcoming (or present?) recession is absurd and since I believe the people behind Masterworks know this (they are not stupid), it is very likely a scam.

@Sparticulous Жыл бұрын

There is nothing peak neoliberal capitalism than investing in money to make money or in static art to make money while the infrastructure and normal economy crumbles

@rugbyf0rlife Жыл бұрын

13:35 This is wrong, actually. UK renewables account for 38% of total energy generation, which isn't a small amount, compared to fossil fuels at 42% The problem is for some inexpicable reason, the "per unit cost" of energy in the UK is pegged on the cost of natural gas. The result of this is previously built green energy like wind and solar (even nuclear) can raise their prices in line with rising gas costs, despite them having ZERO impact on the cost to produce their energy. This is essentially war profiteering by renewable energy companies and has led to an unreasonably high domestic energy cost in the UK. People have proposed capping the price of renewable energy, but there has been hard pushback due to fears this would lead to a reduction in green energy investment. Whether or not that would be the case, the fact that all this green energy HAS NOT saved the UK taxpayer from "paying higher costs relating to fossil fuels" as was promised 10-20 years ago, this goes to show the system is broken fundamentally. Even if the UK was 100% renewable, we would still be paying ridiculous prices. So yeah, usually EE you're on the ball, but you clearly didn't do your research here. The "oh we need more green energy" argument doesn't fly.

@Xirdus Жыл бұрын

You realize that under normal circumstances, renewable energy is more expensive than fossil? It was never about lowering prices, and everyone who said it'd lower prices was lying from the beginning. It's always been green energy for the sake of green energy. Which is a pretty good reason in and of itself.

@ajn2370 Жыл бұрын

They really don'ts seem to have researched the energy bit properly. Just about grasping the stick at the end, this is stimulus for energy producers.

@thomaspreudhomme9443 Жыл бұрын

Isn't green energy more expensive because due to the cost of gas being high demand for renewable rise until it matches gas generated electricity? ie the problem is electricity is generated from different sources are interchangeable and this price per kWh will be in line?

@lukedornon7799 Жыл бұрын

Isn't that because gas is the only option to cover peak-power demand? It's certainly odd that residential electric bills would be based on peak marginal costs and not the combined cost of all energy sources, but that doesn't disprove the point that renewable power can't meet peak demand any time soon and marginal fuel costs HAVE risen by an order of magnitude or more this year alone.

@rugbyf0rlife Жыл бұрын

@@OzMat It varies from year to year. 2020 it was 43% renewable. Statistics can be recategorized and plucked from anywhere. It depends what you include, for example your 60% fossil fuel percentage accounts for lifetime assembly of green energy, not just raw production percentage in a year, which is what my number was. Either way, it doesn't matter. The fact is EE was categorically wrong for trying to imp[ly more green energy would save on costs and that there would be an "artificially low" cost imposed.

@igavinwood Жыл бұрын

I like the concise analysis. It helps non economists to gain some understanding. One thing I'd like to see is a trend for each of your scoring matrics. This would give a better understanding of where and possibly how to work with the economy in question. Especially for those living in that economy.

@alexrenn2479 Жыл бұрын

This guy is a mouthpiece for neoliberal economics and will go down in history as a shill for this failed and destructive economic system. In other words he is part of the problem and not the solution.

@--DM Жыл бұрын

Not sure it is accurate mate. Oversimplified and not even mentioning the key issues that caused cost of living crisis

@courtneygazlay9329 Жыл бұрын

Artwork is typically a terrible investment but excellent way to launder money so if prices are rising I’m sure there’s a bigger picture.

@somethingelse9535 Жыл бұрын

Pun intended?

@becsterbrisbane6275 Жыл бұрын

I see what you did there.....

@coraltown1 Жыл бұрын

Masterworks = NFTs = 💩💩💩

@SportFundMedved Жыл бұрын

That’s exactly why Masterworks have an icon of washing machine in their very logo

@518trey1 Жыл бұрын

The Chinese billionaire are currently trying to escape china and chairmen winny the Pooh doesn’t want that. So everyone’s being a little hush hush about it.

@Accessless Жыл бұрын

The problem in the UK at the moment is that; as you said they need to increase taxes and decrease service spending. However, after decades of cutting back, critical services are on the brink of collapse. There is only one option for cuts now which would be to scrap certain services all together. Which would be instant political suicide for any form of governing body.

@alexrenn2479 Жыл бұрын

What about getting money from the super rich to pay for certain services?

@hitlerssecondcoming2523 Жыл бұрын

I'm sorry when has the NHS ever faced a spending cut?

@nat1bott Жыл бұрын

It depends what services you're talking about. The NHS budget for instance has risen every year for the past 25 years and total government expenditure has steadily risen over the past 20 years or so, from £517 billion in 2005 to about £1 trillion today. Makes one wonder where it all goes.

@dex6316 Жыл бұрын

@@nat1bott wonder how much of this is due to the devaluation of the pound. If you adjust for value against the dollar, you get a 19% raise across 17 years which is below population and inflation growth.

@meganegan5992 Жыл бұрын

Yeah, there's really nothing left *to* cut by now. Austerity has been the dominant fiscal policy of the UK for the past 50 years.

@lucyameliaflynn4768 Жыл бұрын

You know you could work for 40yrs to have $1M in your retirement, meanwhile some people are putting thousands of dollars in a meme coin and now they are multimillionaires.

@noaholiver2946 Жыл бұрын

Most people believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimum access to other currencies or gold/silver coins.

@kenedyright232 Жыл бұрын

My colleague is increasing his portfolio with Josef Dennis's strategy so i believe and trust it, i can't wait to get my paycheck and buy bitcoin and then start.

@CozySER Жыл бұрын

SCAM BOTS SCAM BOTS

@Puma-ph5ep Жыл бұрын

You guys are funny. Claim to have a money making method yet need external money and are active trying to find new investors. If you are that successfull you don't need investors or participants. You need a loan to scale the investments.

@Squig96 Жыл бұрын

For everyone gaining a million from memecoin investment, there is another one loosing a million

@adiack1534 Жыл бұрын

Its a pity that this video wasn't released a couple weeks later with how rapidly this situation is developing

@gm2407 Жыл бұрын

Maybe an update wil be posted.

@raymondwebb4179 Жыл бұрын

Project fear, things are going well,

@MirukuESO Жыл бұрын

@@raymondwebb4179 What how? How in gods name are we doing well.

@Supergforce777 Жыл бұрын

Future man?

@TempoLOOKING Жыл бұрын

@@MirukuESO the wef may die too

@matthewparker7909 Жыл бұрын

When British politics moves so fast that a video posted 40 mins ago, is already out of date 😅

@jamescanjuggle Жыл бұрын

whats happened now? 😅 Im irish trying to understand whats actually going on but its so messy i dont know how to unravel it all

@thespanishinquisition4078 Жыл бұрын

@@jamescanjuggle the PM resigned

@jamescanjuggle Жыл бұрын

@@thespanishinquisition4078 wait again?

@thespanishinquisition4078 Жыл бұрын

@@jamescanjuggle yeah, she lasted 44 days

@skindred1888 Жыл бұрын

@@jamescanjuggle there's a pretty comical live stream from the daily Star...will truss outlast a lettuce. And she didn't...

@diane.moore- 6 ай бұрын

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I’ve been quite ensured about investing in this current market and at the same time I feel it’s the best time to get started on the market, what are your thoughts?!

@ConorBrews 6 ай бұрын

I can’t focus on the long run when I should be retiring in 3yrs ,you see I’ve got a good companies in my portfolio and a good amount invested, but my profits has been stalling, does it mean this unstable market doesn’t provide any calculated risky opportunities to make profits?

@ThomasChai05 6 ай бұрын

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $575k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

@mikegarvey17 6 ай бұрын

@@ThomasChai05 I've been considering going the same route, could you share more info please on the advisor that guided you to such impressive gains

@ThomasChai05 6 ай бұрын

CAMILLE ALICIA GARCIA maintains an online presence. Just make a simple search for her name online.

@Grace.milburn 6 ай бұрын

Thank you, I just searched for her online, and I'm genuinely impressed with her qualifications. I've already contacted her because I could use all the help I can get.

@Zazzri Жыл бұрын

Agree with all you said except on the energy point. The energy prices had to be capped or people across the UK would have gone homeless due to the insane prices. It wasn't small rises, it was paying thousands per month without the cap. But the rest I completely agree with.

@danirfan5452 Жыл бұрын

Then the government should fund and subsidize the energy sector, rather than put caps on the prices and cripple the market

@JLneonhug Жыл бұрын

You should look at rest of EU, think Germany is 3-5x cost right now.

@v_cpt-phasma_v689 Жыл бұрын

@@danirfan5452 the government ARE funding and subsidizing the energy sector.

@danellis-jones1591 Жыл бұрын

Yeah. Energy prices were, and still could, crash the real UK economy. Businesses were saying they would shut, and households would go bankrupt.

@4thzone697 Жыл бұрын

@@danirfan5452 or just go with the cheaper option and nationalise energy production and distribution. How such a strategic industry, with various characteristics that make it a natural monopoly, is allowed to be operated by private firms is beyond comprehension.

@XSpImmaLion Жыл бұрын

British politics is moving so fast that the video was produced before Truss getting the boot, but also if you update to include that, a week from now it'd also have to be updated again to include whoever comes next, and what the policies will be like. xD I always kinda knew when Brexit got voted in that UK would go through a phase of high instability... and that was only considering how the country would have to renegotiate everything with and against the EU right afterwards. I wasn't considering a change in monarchy, a revolving door on number 10, the pandemic, the energy crisis, the disruption in global supplies, the war in Ukraine and other factors. Some of those effects don't matter all that much because it affects the entire world, so everyone is equally going down which brings to parity all other nations anyways, some are even kinda beneficial to the UK due to an expectation of general stability, but some are definitely not great... :P

@bengoacher4455 Жыл бұрын

Right. I supported Brexit and was willing to pay short term for better access to world markets long term. Only to find a pandemic, followed by a war in Ukraine, followed by a change in leadership, followed by China shutting down it's factories, a US president that despises the UK. No one thought brexit would be easy, but no one thought that the next 6 years would have several world changing events. There is no easy way out of this. A recession would be catastrophic for millions of people, while continuing inflation is also terrible. I think it all comes back to 360bn spent trying to contain a flu.

@jonathankeenan5163 Жыл бұрын

If you take into account an understanding of the role of 55 Tufton Street in both Brexit and the contents of this government it isn't hard to predict the trajectory of the UK economy. The lunatics are literally running the country and we have proved their free market libertarian economics are an utter failure (just as anyone with any sense knew they would be).

@TempoLOOKING Жыл бұрын

You forgot the demon invasions in the USA

@skinwgs2275 Жыл бұрын

@@bengoacher4455 - in the long run, the recession will be a mere blip. I have lived through several recessions, and they rarely last more than three quarters, unless the govt. screws up and makes it worse. Which is a strong possibility, given the clowns currently in charge. I think we'll get through it, Ben. Like your point about all that £££ blown containing a flu.

@MegaGouch Жыл бұрын

@@bengoacher4455 ignoring the world events that were outside of the UKs control, it seems like all the UKs problems are down to bad governance, Brexit guaranteed to be a failure but it needed good politicians. Considering many many of the reasons people were unhappy and voted for Brexit were as much the problems of bad politics as it was the EU, I'd argue that the UK has been suffering from bad leadership for decades and the consequences of that are all coming to a head. The recent global situations have just hurried things along.

@drunksupportcharacter Жыл бұрын

Being in my 30s with no debt and no possible future of having my own family right now the past 2 years have made me look at the expense i would be paying to get a house to "Ahh its pointless to buy one" Im quite passive in my future thoughts as we cant see it, But i would be lying if i didnt say it makes me feel pretty sad

@hellomoto1426 Жыл бұрын

Don't worry

@Rig0r_M0rtis Жыл бұрын

@@hellomoto1426 be happy

@blacov89 Жыл бұрын

Our generation is seriously disadvantaged. We will be working until we drop dead as our pensions will be worthless, at least compared to the cost of living at the time. Our wages will be flat and our benefits will be slowly eroding to maximise higher profits for the companies we work for. People, couples living in the South-East or London this day and age in my opinion would have household income of at least £80000 (£100000 in London) to be able to comfortably start a family. Livings costs would still be catching up with them every year unless there is a dramatic shift in economic trend.

@legerdemain444 Жыл бұрын

I'm sorry you feel sad. I'm in a similar position, I'm 30 with no debt, I could be considered lucky since I have a comfortable level of income and ability to save. But a few years ago I realised how much struggle it would be to buy a house, and the level of risk afterwards. It's killed any desire I might have had to start a family so I now think of buying a house as pointless. I don't tend to think much about the future either because things can change but right now it seems like the best option is to live pretty minimalistically and single. I'm mostly okay with that, but I'm sad for those who won't be able to live the lives they hoped for.

@kekistanihelpdesk8508 Жыл бұрын

I'm 39. No debts but no savings either. No house, no chance of starting a family. I'll be renting forever. life's still fun if you stay healthy physically and spiritually. We are gonna die anyway so I would only have a house for a few decades. Can't take it with me.

@CorporateDrone Жыл бұрын

Can you make a video about how the Mexican peso has not devalued while other major currencies have?

@084ironman Жыл бұрын

Dominican peso has gain value too

@Saffy1 Жыл бұрын

No war, no heating issues ?

@CorporateDrone Жыл бұрын

😂

@jerryhu9005 Жыл бұрын

This is what 9.25% overnight rate will do to a fella

@demesiojones2425 Жыл бұрын

It’s about to drop about 20%

@samhubble6147 Жыл бұрын

Disappointed by the masterworks ad, we all know its sort of a scam...

@tryx3651 Жыл бұрын

Yup, I get that too need to monetize your channel, but there must be more legitimate sponsors to partner with.

@mdmzr6512 Жыл бұрын

I'm 58 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, we are finding it impossible to replace it. We can get by, but cant seem to get ahead. My condolences to anyone retiring in this crisis, 40years nonstop just for a crooked system to take all you worked for.......😪😪

@DukeofTxtspeak Жыл бұрын

Have you got a second house? If so, sell it. Old people with their houses...

@badda_boom8017 Жыл бұрын

@@DukeofTxtspeak you live in a fantasy world where you believe people sit with empty houses lol

@gz6x Жыл бұрын

Find a low cost country and move there, that is my plan.

@AlphaGeekgirl Жыл бұрын

@Vido jimenez And hundreds of thousands more have gone BANKRUPT through bitcoin. (Anecdotally, I know of at least 4 people who have gone bankrupt through bitcoin - and no-one who has achieved financial independence even after 5 years)

@AlphaGeekgirl Жыл бұрын

@@DukeofTxtspeak Young people and their opinionated "judginess" based on NO FACTS 🙄

@bodaciouschad Жыл бұрын

10:38 "companies produce as much as they can and sell those goods and services to anyone in the ecconomy with the means to buy their product." Not in the absence of competition- 54% of US inflation in the CPI for 2022 was due to increased corporate profits. If you sell food and you sell half the food in the market- guess what, people don't have the option of not buying it at whatever price you set.

@bodaciouschad Жыл бұрын

Source: ecconomic policy institute

@user-uv3li8tk4r Жыл бұрын

It’s dependent on the elasticity of a good. Medical, food or fuel producers sell and produce in elastic goods and therefore don’t benefit in terms of profit from maximizing production and driving down price

@andrelee7081 Жыл бұрын

Yh a lot of assumptions that make the free market model sustainable are just patently false.

@interspect_ Жыл бұрын

@@andrelee7081 like?

@supertrooper6011 Жыл бұрын

I looked through the article and it is interesting. I'm not 100% convinced on the conclusions though. You are looking at a transitional period during which (as noted) all costs have been increasing and we are fast approaching recession/depression. It makes sense that responsible companies that are facing rising prices would be cutting back on spending, increasing prices and attempting to build a cash reserve to weather the storm. I suspect these figures will come down considerably as a recession takes hold... and then we'll probably see all the companies that didn't build a reserve go bust or get bailed out.

@indrasan Жыл бұрын

my constipated stomach takes more time to clean up than tenure of UK prime ministers

@jonathanwagner6370 Жыл бұрын

Could you do an update on Germany given that we have horrible energy issues right now and energy is at the core of the German model?

@obviouslymatt6452 Жыл бұрын

Who doesn’t have horrible energy issues in europe? What is there to say?

@stup4501 Жыл бұрын

@@obviouslymatt6452 That's a bit simplistic dude, one size doesn't fit all.

@robertall33 Жыл бұрын

@@obviouslymatt6452 I think Germany are in bigger trouble thank most.

@sternchen6596 Жыл бұрын

I think it would make more sense to wait for more information on the energy price cap

@lukacore9151 Жыл бұрын

France is doing reasonably well, nuclear energy is really looking great right now

@metrazol Жыл бұрын

If I wanted to help billionaires launder money I'd find something more fun that storing art in a freeport.

@Jprjason123 Жыл бұрын

If I could hit like more than once I would. An unbiased review rather than the endless noise of the British media. Thank you.

@davidkinnear1905 Жыл бұрын

Liss Truss didn't try to deliver tax cuts because she thought it would be popular (it wasn't from the get go) she did it because she believes in them ideologically.

@davidkinnear1905 Жыл бұрын

@@djp3637 true, but the people who voted her in did so because she stated that she would do it, and even co-authored a book about it. She genuinely believed that, even though it would be unpopular with the voters at first, it would make the econony grow so much it would save her.

@lolb1221 Жыл бұрын

I actually feel better after watching that. Thank you and much love from the U.K.

@largeladsteve25 Жыл бұрын

Interesting video, but the problem with economic analysis like this is it doesnt take into account the financial situation on the ground, for everyday people. While the economy may still look strongish, more and more people can barely afford to eat now, so does that really count as being a rich country anymore?

@silverhost9782 Жыл бұрын

The UK is still a rich country, obviously. If you want an actual non-rich country, may I point you to Sri Lanka?

@ajn2370 Жыл бұрын

@@silverhost9782 1 in 7 people in the UK are now skipping meals. (Polling by TUC) It's not even properly cold yet.

@Lando-kx6so Жыл бұрын

In that case the only rich countries are those in the gulf states b/c rn people from Canada to China are really struggling

@zopEnglandzip Жыл бұрын

That's bundled up with the CPI (consumer price increase) EE did mention it but if you blinked you would have missed it

@silverhost9782 Жыл бұрын

@Griffith The White Falcon🔧 No we aren't. The fact that you say 'ya'll' is a pretty good indicator that you have no idea what you're talking about here

@johnhobbes2268 Жыл бұрын

If you want a challange, maybe you could make a video on the merit order efect on energy prices and especially why so many countries used (or are using) the system despite the desaterous consequenses in the current crisis. I think the US is using an "economic dispatch" system, but I#m not really familiar with the US energy market.

@press_button_for_assistance Жыл бұрын

UK citizen here. The recent month has been crazy with politicians trying all manner of crazy things to keep their jobs. A general election would be in the interest of the general public but the conservative led government is trying its hardest to not let that happen. We’re all hoping for the best but it’s not looking great.

@wraithship Жыл бұрын

The thing is, they don't have to try to not have an election. To get a GE either: the PM has to call one, or the government has to loose a vote of no confidence or otherwise be unable to form a government that can win one... And to loose the VONC there would have to be a lot of tory rebels. But that won't happen as the one thing that still unites the Tories is that they don't want a GE as they know they would be absolutely hammered in one right now and there's a slim chance that may improve in the next 2 years. And we don't have any mechanism which can force one on them

@v_cpt-phasma_v689 Жыл бұрын

theres no reason for a GE, a change in PM does not warrant a GE, you have never ever voted for PM, thats not how our gov works, we vote for a party, they choose the party leader. If a GE was called everytime the economy took a downturn youd have daily GE's.

@wraithship Жыл бұрын

@@v_cpt-phasma_v689 A economic downturn is one thing. This is months of goverment instability and without a mandate. Edit: That's to say new goverments are being formed with policies vastly different to those that were on the manifesto that got them elected

@aidan-4759 Жыл бұрын

@@v_cpt-phasma_v689 But we did vote for a manifesto which has been basically abandoned.

@matthowells6382 Жыл бұрын

@@v_cpt-phasma_v689 You're right, but the current political instability and incredibly poor governance at a time like this is actively damaging the UK's economy, reputation and lives of everyday people. The 2019 election seems like a very long time ago and the world has transformed since then, that mandate given to the conservatives has all but evaporated. It's in the national interest for the conservatives to call a GE but we all know they won't...

@ben7510 Жыл бұрын

Finally a video I've been requesting for .. Thank you for listening

@somerelativleyuninterestin4763 Жыл бұрын

Wasn’t the energy price cap freeze meant to be the government basically saying “you pay this (2500) and we’ll pay for the rest like what everyone else is doing”?

@pedrohenriqueribeiro8326 Жыл бұрын

Yes

@knurlgnar24 Жыл бұрын

No. There is no 'cap'. The cap is a cap on the price per kwh and you still pay for what you use, just at below market rate. If you use twice as much as your neighbor you pay twice as much as your neighbor.

@buzz1ebee Жыл бұрын

Yeah, it’s guaranteed profits for the energy companies. One important thing to note is that it’s not a cap of £2500 / year, it’s a cap on the unit price (kWh) of electricity and gas. I’ve heard too many tales of people thinking they can blast their heating because the price is capped, not realising that they can absolutely can pay more than £2500.

@jonathankeenan5163 Жыл бұрын

Nope. They are not paying the rest we are. It is a loan to tax payers that will have to be repaid. It is also a way to keep funnelling money from the public sector into the private. The energy companies are raking in cash due to the high cost of global energy.

@Homer-OJ-Simpson Жыл бұрын

@@buzz1ebee guaranteed profits for energy companies? Then what’s your solution?

@ajn2370 Жыл бұрын

The energy price cap segment was obviously not researched. The cap has been part of our energy market since 2019 and it existed to curb the rampant profiteering off vulnerable people. The cap is calculated by an algorithm based on wholesale costs. This year the wholesale costs were spiraling so badly there were fears of substantial civil unrest over winter, including an attempt to get 1 million households to stop paying for energy at all. The government intervened to lower the consumer side of the cap by promising to pay energy suppliers 100% of the shortfall. The price is now fixed at well above twice the amount it was a year ago. Although the price cap is stated as an annual bill, implying no household will pay more than that exact figure, it doesn't function this way. It is a cap on the standing charge (a small fee charged daily to those connected to the grid) and the price per unit of energy. Also, please bear in mind that until about a year ago the price cap was the maximum you would expect to pay, there were always cheaper deals. Now it is the minimum, because there are no cheaper variable rate deals and it doesn't apply to fixed rate deals at all.

@IFlyinBaconI Жыл бұрын

Great content as always 👏 definitely a must watch for the government 😂

@edezigner Жыл бұрын

Love your videos. Can you do some more around the energy caps, LNG, etc and what is likely to help/hurt the economies of the world?

@ngakaed1429 Жыл бұрын

I recommended this channel to all my friends great i love your video.

@davidwelty9763 Жыл бұрын

The problem with raising taxes and spending less is the spending less part never happens.

@Beezard1977 Жыл бұрын

This. And the idea that politicians are willing to bring the pain and “send a strong signal” about curbing inflation is pure camp. They’re going ride the money train into the ground and bail out their special interests until hyperinflation or WWIII. So all that probably happened was Brit’s got screwed out of a tax cut, and blackrock/vanguard and co. got their guy in as chancellor.

@thomasculshaw8843 Жыл бұрын

Love your content keep up the good work .

@suzysuzana920 Жыл бұрын

Thanks so much for your videos!!! They are amazing and I learn so much through this KZfaq channel!

@spartakljasenko251 Жыл бұрын

could you do a video on a tinyt country? i.e. Estonia. It would be interesting to find out how the rules are different for such micro economies

@lh4394 Жыл бұрын

I'm going through all you videos and think they are brilliant, I've just finished game theory. Thank you for doing another 1 about my nation hopefully we can sort are problems out. Interesting note as you talked about London homes the most expensive uk home is going back up for sale, owned by the owner of evergrande

@alexrenn2479 Жыл бұрын

He is a mouthpiece for neoliberal economics and will go down in history as a shill for this failed and destructive economic system. Don't be fooled.

@prettyboylatino7324 Жыл бұрын

Excellent vid chap

@hopsky Жыл бұрын

Love the explanation. Great video!

@jesseholliday3480 Жыл бұрын

Masterworks, thank you EE, I assume you offer this as financial advice!

@tando6266 Жыл бұрын

I just purchased discretionary goods at 30% discount over US domestic even after shipping, so it is definitely give and take.

@mhdibm7515 Жыл бұрын

My fav economics channel on youtube

@zacharywong483 Жыл бұрын

Great vid Economics Explained team!

@cadebradbury9334 Жыл бұрын

The timing of this video was immaculate, Lizz truss has just left and now no one has any idea what's happening. Talk about stability and confidence, theres going to be 3 prime ministers in about 5 months, most likely all with wildly different economic plans. As someone in England, it's so much messier than I've ever remembered. Usually, you only had to check any political news once a week and maybe something interesting would have happened, now, there's always news and speculation on who's actually in charge at any one moment and who will be in the future. I really think that as a country who historically has used it's stability as a strength, with many financial institutions over a hundred years old, if not older, this is not a good luck. We all just want someone boring now, to get back to not having to care about politics because nothing happened.

@Lando-kx6so Жыл бұрын

That will most likely happen after a general election puts labour in power

@purpledevilr7463 Жыл бұрын

2:22 I think Japan really needs clarification. It’s like translating pence to dollars. Times the value by 100.

@colinmacdonald2871 Жыл бұрын

Would love to here your thoughts on what Russell Napier is talking about regarding capital ex boom, continued inflation and eventual unemployment.

@AmitBhatt84 Жыл бұрын

Superb analysis. Got to learn a lot. Thanks

@Antenox Жыл бұрын

"This was the kind of policy making you would expect from an undeveloped economy with an unstable leadership" Also known as a conservative government.

@BirdsTheWurd Жыл бұрын

I think the general population would be more on board with the black market energy idea than you think. I'd love seeing kids in school peddling black market energy tactics undermining cooperations 😂

@ahtuno Жыл бұрын

As a Brit you missed the key point of the tax cuts, they were 1% for the majority of us (per annum) and therefore negligible. But for people earning over £150,000 this figure grew to 5%. It became quickly apparent that this was a tax cut to benefit only the richest in society, because 1% for someone earning lets say £30,000 is only £300 a year, and considering the pound had fallen to almost parity with the dollar people had on average lost WAAAY more than £300 a year due to the currency devaluation. Then the now fired Chancellor had the gall to get on TV and argue that this was beneficial for everyone, but the general public were having none of it. One has to wonder, if this really was so beneficial for us, why did no one support it?

@LasseVictorLarsen Жыл бұрын

I have been pondering this exact question question for months

@JessicaTaylorPMC Жыл бұрын

Lettuce for PM

@DanielSann Жыл бұрын

Why did you decide to not show the 2021 value of gdp? It's perfectly vidible on the world bank site...

@MarkEm Жыл бұрын

Such educational content, such a genuine host

@grizzlednerd4521 Жыл бұрын

On UK Tax cuts (01:12) Dr. John Cochrane of the Hoover Institution has claimed that that tax cuts were the only method for the UK to avoid the continued slow decline of it's economy. Not saying I agree, but it's not as clear cut as "any high school level economics student would have been able to tell you" (ref: GoodFellows, Hoover Institution, 18/10/2022).

@CureMewBlueberry Жыл бұрын

There always has been price caps in the UK set by Ofgem, which don't strictly work as a cap but more as an average guideline. Even the EU wants to establish an EU-wide one to cope for the winter

@NGCAnderopolis Жыл бұрын

Northern Europe and Germany are against an EU price cap.

@AlexKaduk Жыл бұрын

Is the full version of national leaderboard available somewhere?

@ehrendamitz2555 Жыл бұрын

Thanks much!

@shrimpanzee001 Жыл бұрын

Thanks Lizz 👍

@vinniechan Жыл бұрын

Just a few comments from the ground when the mini budget was announced, a fair few industry and business associations were actually quite receptive to it. problem was the news of the exchange got plasta allover the media I agree with your conclusion on the stability and confidence for different reason. the problem is more with the country not able to make up it's mind where to go. In fact, with interest rate rising and the government goes through with tax cut (or at least a pathway or a time table for it) it could be a positive. I'm quite sceptical on the notion that the tax cut would matter that much to inflation to be honest. I myself would have got an extra 60 quid take home pay which is nice, just about covers the rise of my energy bills and i'm not goig to buy a Farrari any time soon. even tht top rate of 45% would only have brought in about 5billion quid a yr which is like 0.25% of GDP. As for rising interest rate, I think the BOE is putting off as much as they can. Yeah it's the right thing to do in theory, tell that to my colleague who is remortgaging next january. I like that you keep saying UK and EU. Depsite the hard line Brexiter and a certain segment on the continent spiting each other across the channel, the UK and EU are closely linked and correalated to each other. Once ppl are done spiting with each other the two sides need to settle down on a relationship and move forward

@TheLukass71 Жыл бұрын

100% agreed. Add to that the energy price cap which was desperately needed - inflation or not. The energy priced were not just gonna have people freeze but also economically make thousands of businesses (who have already had rough few years) broke. Across the whole Europe countries are heavily subsidising energy costs because they just have to. Truss was an awful prime minister (thankfully? shortlived) but it was the constant indecision and uturns on everything more than the initial policy that made her terrible. As EE always points out, stability and confidence is key.

@vinniechan Жыл бұрын

@@TheLukass71 good point I forgot about energy price cap The companies are charging the market price and customers pay the cap and the government back stop the difference

@wabba2344 Жыл бұрын

Yeah, some of the senior leaders in my company were fairly receptive of it (FTSE 100 company). Then there was an absolute deluge of negativity and that was the end of that.

@yonimargolin1658 Жыл бұрын

I think a video about the Israeli economy could be interesting. I'm biased, but I think it is objectively quite an interesting story and case study of different economic models in the same environment.

@marSeebs Жыл бұрын

Could it to be possible to offer subsidies for products based on increases of input? Prices won't need to rise, supply increases, and it should slow inflation right?

@tirolekubu8578 Жыл бұрын

"...natural economic airbag from deploying." 😂 Enjoying the humor!

@sondres.8021 Жыл бұрын

If the politicians just watched Economics Explained, every country would be prosperous

@HenriquesHelio1 Жыл бұрын

Starting at 16:13 and for a few seconds you are showing footage from Portugal. I suspect it was on purpose, but wanted to check 😅 Thanks mate

@thebap4596 Жыл бұрын

Hey, I‘d like your take on Germany‘s Schuldenbremse (translated = debt brake). Our minister of finance is very keen on keeping germany‘s spending above our expenditures. I‘d love to see your take on how this influences an economy. Especially in times of the eu energy crisis, where subsidies and „giving people money“ are almost mandatory. As always, keep up the good work:)

@GortHyman Жыл бұрын

That was a very kind assessment of the last few weeks and a generous estimation of the UK's future prospects

@ethribin4188 Жыл бұрын

In short: If your people dont have enough money to survive due to economic troubles, dont give them more money. Make the money they have more valuable.

@jamm8284 Жыл бұрын

You could cap energy prices at a % above the value it was purchased. Lets not forget that pretty much every energy company buys futures/orders 6 or 12 months before they get the product, paying the rate when they purchased the order, not the new value when delivered.

@Libertarian1111 Жыл бұрын

hi thanks for your detailed video however, i would like to make a counter argument on what you said about truss polices while i disagreed strongly with increasing spending, while tax cuts would theoretically increase inflation, its important to also understand that it can fight inflation, especially if it is income or corporation tax that is being cut, because it gives people the push to work more, thereby increasing supply (at least of labor), and gives entrepreneurs the push to think critically about high prices and do something about it(eg. bringing out new and better products, finding ways to better improve and cut the cost of the production of the product), thereby helping to increase supply and cut prices basically i am talking about supply side economics, tested and tried during the Reagan thatcher era, and was a Hugh success obviously, it isnt only tax cuts which propmote this, and it needs to come with more cuts to growth stifling regulation the fact that the top tax rate in most developed countries ranges between 40% - 50% certainly makes people less ambitious(because there being punished with high taxes for working hard and being productive), and less critical of failure in the economy, and therefore less willing to do anything about that

@carycunningham9510 Жыл бұрын

Good analysis although I feel there are a few additional points to consider. Namely corruption and its knock-on effect of failed competition policy and the market distortions that creates. With corruption you will not have the proper regulatory environment to mandate free and fair competition. This leads to industry consolidation and therefore cartels and cartel pricing, or price gouging if you will. This effect will be even further amplified if there is cartel pricing for necessary goods and services. This is a huge factor in corrupt oligarchies that is often assiduously overlooked.

@quintessenceSL Жыл бұрын

Indeed. Best line I've seen is a corrupt society cannot accurately gauge its performance, so any actions it takes is divorced from reality.

@Texo333 Жыл бұрын

is there a way to see the full list on the national leaderboard?

@daveandrew589 Жыл бұрын

Also put ranking numbers next to each entry.

@danch812 Жыл бұрын

Finally an update video on the UK I guess my message finally got through to EE

@ResandOuies Жыл бұрын

is there anyplace I can acutally see that leaderboard? Some of the older videos just reference a different video for placment and those videos does not seem to exist anywhere. Beside would be nice to acutally see the list in its completness

@lv3609 Жыл бұрын

It’s a made up leaderboard, the author assign the values the way he feels about some characteristics of a country economy and in the end calculate the mean value. So you don’t need a link for the leaderboard, you can create one yourself.

@investorsam Жыл бұрын

Your videos are supremely high quality economic analysis. Great work!

@falconJB Жыл бұрын

Could you explain the issue with record profits and massive oversupply, to the point that companies are building tons of new warehouses to store all the stuff they aren't selling, matched with record inflation. If the profits are up, the supply is up, shouldn't prices be falling according to basic eccon theory?

@badda_boom8017 Жыл бұрын

No one can explain it because it isn't true. It's socialist propaganda, used to twist up the uneducated

@falconJB Жыл бұрын

@@badda_boom8017 No you can look up the numbers, it is true, and you don't need to be a socialist to read a financial report.

@tonykindred520 Жыл бұрын

Thanks.

@monke447 Жыл бұрын

This was the first ad I haven't skipped through in a while. Executed very well

@caracalfloppa4997 Жыл бұрын

masterworks is really sketchy. If the returns sound too good to be true they probably are. Beware

@monke447 Жыл бұрын

@@caracalfloppa4997 I share your skeptism about masterworks, thanks for the heads up :)

@donaldlee8249 Жыл бұрын

Please make a video about Japanese Yen 円安. The value of Japanese Yen dropped by over 40% this year, and we are experiencing inflation that’s unfelt in this country for over 30 yrs. Yet our central bank and parliament are still arguing over whether to keep the quantitative easing policy set up by the past pm Abe. Now Taiwan and South Korea has surpassed us in terms of gdp per capita, Japan might become the first developed economy to fall back to a developing one in 21st century😂 btw I think Kishida might have lower support rate than Liz Truss

@Snoop_Dugg Жыл бұрын

To be fair, it’s already industrialised with high standards of public transport and manufacturing. So it might not go down to developing levels

@jcrosenkreuz5213 Жыл бұрын

It'll be a portrait of policy in an aged nation, many places in Asia and Europe will be having the same discussions in a decade.

@pushslice Жыл бұрын

As a Japanophile, I’ve been having a fun last few weeks ordering items from your country ;-) Not sure if it’s helping your economy any, but the exchange rate makes a lot of stuff I want very appealing :-D

@shrayesraman5192 Жыл бұрын

@@pushslice that's a nice way to say weeabo

@donaldlee8249 Жыл бұрын

@@Snoop_Dugg had great public transport and manufacturing to be precise. Just search any video on the evolution of railroad of Hokkaido on KZfaq. Most public transportation agencies in Japan have been running on deficit for decades now

@Morph-hf1hy Жыл бұрын

Great video as ever. IMO many of the tax cuts directed at the rich weren't chosen to be politically popular (in fact, they were unpopular), they were intended to favour "wealth creators", incentivise enterprise etc. The dropped the top rate of tax, removed the cap of banker's bonuses and dropped corporation tax...they would argue that this should incourage investment in the UK, incentivise work and output and lead to growth. It was very ideological (completely misguided). They're radical free marketeers who want to shrink the state, reduce taxes, free up enterise etc. These weren't populist tax cuts

@dashmeetsingh9679 Жыл бұрын

The most effective way to subsidize and decreased demand for utilities is like: No billing if a household uses x units of utility. But if a household uses x+1 units then bill for whole x+1 units. This measure make sure people who are concerned for power bills in this case will try to keep under x units. And rich wont care.

@Gouldsonuk Жыл бұрын

Idea for a future video - showing how countries could move around the leaderboard. The UK over the 20th century could be a good case study in how economic policy and political changes can change these measures. You could show the changing fortunes of other countries - Russia, India, Brazil or whatever at the same time.

@keosan Жыл бұрын

Love your channel, but MasterWorks seems to be a bit of a scam in the making

@Some.real.human. Жыл бұрын

As a student of economics these videos are so well written. So much economics in such a consumable medium.

@prafulchauhan6114 Жыл бұрын

I am all for tax increases but if affects lower and middle income houshold less and upper income earners more,which is most of the time not managed.

@lucasrodriguezschwarzenber3127 Жыл бұрын

Love your videos man. Could I ask you to make one about the future of Germany's economy now that they cut off their supplies of russian oil and gas?? 🙏🙏

@stefan-pz6iy Жыл бұрын

And meanwhile europe is struggling with high inflation, the devaluation of the euro(below to dollar because of the fed),ernegy and gas crisis low manufacturing productivity, many european companies fleeing to the us and unemployment

@parkgumstef5206 Жыл бұрын

You are right

@silverhost9782 Жыл бұрын

Right, the entire continent is having a bad time, not just the UK. Most would point to countries like Greece or Italy as more obvious instigators of a Eurozone crisis than the UK...

@kefalonitis5698 Жыл бұрын

@@silverhost9782 The Greek economy is forecasted to grow by 4.2% by the end of 2022 which is even higher than an earlier estimate from the bank of Greece that forecasted a 3.2% growth. No one can say that we're the ones slacking this time 🤷‍♂️. Hope the EU gets back on its feet though

@silverhost9782 Жыл бұрын

@@kefalonitis5698 GDP growth and overall economic health aren't really the same thing

@josepharrr3712 Жыл бұрын

I brought US dollar, oil and gas to the EU and europeans and I became european commision president

@benitzers8858 Жыл бұрын

Of course

@Shisuixd Жыл бұрын

Hey Economics Explained, a great video, as always. It would be really interesting, if you could make a video about the german energy crisis and how well (or not) the german government is managing this energy crisis, as well as ranking Germany on your national leaderboard!

@xavierboucher2037 Жыл бұрын

Germany worst decision ever on energy was to cut off nuclear in 2011 and do nothing after to get independent from Russia after Crimea annexation. Now, the government can't do anything. Green energies are not ready and gas is from an unstable country which back then was also known to be unstable.

@seansingh8862 Жыл бұрын

UK governments have a long history of mistreating investors in publicly listed companies. They can politically afford to do this in part because private share ownership rates in the UK are incredibly low. Equity markets compensate for this by generally giving UK companies lower multiples than similar businesses in more investor-friendly jurisdictions. I don't think that much has changed in this regard in the past twelve months.

@atypicalprogrammer5777 Жыл бұрын

I hope this will serve as a warning to politicians in other countries, that you can't just do expansionist fiscal policies when inflation is this high. And that people and markets actually care about sound financial policy. Here in Denmark, there is a general election and in a debate I saw last week, the right/centre-right politicians were promising tax cuts, while the left/centre-left promised increased spending.

@jormungandrtheworldserpent8382 Жыл бұрын

might i make a suggestion for the leader board because economics are always changing wouldn't it be a better idea to have a date like end of year or something similar to calculate all of them at once you could dedicate a whole video to how they have all changed since last calculated