Nice video - but the major mistake was holding interest rates at close to 0% for 15 years - it has contributed to the house prices bubble and cost of living crisis...they should have raised them slowly over the years rather than over such a short period of time. A health interest rate for the UK is now is about 3.75-4.25%.
@goych5 ай бұрын
Houses have been going up for years and years and years, certainly way more than 15 years! You think houses were affordable 15 years ago?! Ha ha ha ha ha ha
@buy.to.let.britain5 ай бұрын
mmm.... important safety tip there...
@terryj505 ай бұрын
@@goychyou think it’s going to be affordable if you drop rates to 0 again.
@tropics84075 ай бұрын
Don’t forget all that money printing by the government and the Bank of England. All that fake money bidding up asset prices 🤷♂️ and they are getting ready to do it again 🙄
@ilikeboringthings95 ай бұрын
@ There should have been a significant 'reset' of house prices following the GFC. Home owners were bailed out at the expense of renters, savers and future buyers. But the low rates policy allowed the bubble to inflate again. Its pretty obvious.
@ilikeboringthings95 ай бұрын
The BoE did print too much money - they are responsible for about half the inflation - and then were too slow to tap the brakes. Government Policy has also been very poor, for example austerity was overdone when we should have been making capital investment. Together they are to blame for the state of the economy.
@Toodyslexicforyou5 ай бұрын
No there not. BOE only prints 3% of the money created every year 97% of money created was made by PRIVATE banks like hsbc, or loyds
@Npwn5 ай бұрын
Very true. Quantitive easing so they say. Money printing is what we call it. If only we had a currency that they literally couldn't print more of, and government couldn't control?? Investigate BTC and XMR
@Toodyslexicforyou5 ай бұрын
@@Npwn you do realise BOE only made 3% of money created last year. Private banks made 97%. Your points are more than just invalid.
@sirrobinofloxley71564 ай бұрын
And currency issue?
@Vroomfondle10664 ай бұрын
@@NpwnAll government spending involves the creation of new money.
@detectiveofmoneypolitics5 ай бұрын
Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊
@berthold231505 ай бұрын
Two things you missed out. The reason immigration is not tackled is because the large increase makes the 'per capita' figure look better. Second is that the 'so called' Bank of England is a private corporation, owned by the Rothchild's, to make money and naturally they look after themselves first.Do you think that might influence matters ?
@Alex-df4lt5 ай бұрын
The best times of Rothchilds are long gone.
@berthold231505 ай бұрын
Is that why they are in charge of the USB in Switzerland, who incidentally control all European banks ? Try to reason with facts, not fiction. They are rolling in it as is Goldman/Sachs with an estimated total value of over 400 trillion dollars. You truly believe they have no influence or is it what you LIKE to believe ?
@JevansUK5 ай бұрын
Umm rdp per capita goes down as you add more people without real growth.
@barbthegreat5864 ай бұрын
The immigration isn't tackled because the UK needs immigrants, especially in the time of severe skill shortages. With that Rothchild comment you just disclosed who you really are.
@JevansUK4 ай бұрын
@barbthegreat586 it's not all about skills either the dependency rate matters too. We have an aging population with the biggest generation coming towards retirement
@ShamileII5 ай бұрын
Very nice video. Greetings from always sunny Florida.
@mattanderson66725 ай бұрын
Really interesting, thank you!!
@peterdilworth92825 ай бұрын
‘The question is’ - is it worth the resulting pain (not the effort) to keep raising interest rates and keeping them raised, when any intelligent person (not an economist) can see that the impact on inflation is going to be very limited. The answer is a very definite NO. You were absolutely correct to criticise the BoE for failing the people in this respect since the Ukraine war commenced. Just tell me how on earth raising interest rates can offset the impact of (primarily) increasing energy costs resulting from such a conflict. By the way - America has played a significant part in inflicting pain on the UK (and many other) economy as a result of their desire to provoke Putin into the conflicts with Ukraine. No problem for them - they have fracked their way out of the economic pain of increasing energy costs.
@jazeroth3225 ай бұрын
These interest rates are helping me and the missus save for a mortgage deposit. Currently, we are happy that they are high. But we are very lucky in our situation ATM.
@cobbler405 ай бұрын
We haven’t seen the full effect of high interest rates. As millions come off low rate fixed mortgages in the next 3 years we will see the effect. Less disposable income and repossessions.
@cobbler405 ай бұрын
Interest rates can never fall to zero again because who apart from the BoE lends money for no return ? I think 4-5% historically is low. This gives a fair return to savers and ensures funds for borrowers.
@toyotaprius795 ай бұрын
You forgot to mention who exactly borrowed 0% loans. Those wealthy enough to borrow against their assets and hide it in the isle of man and Cayman islands. Especially those who have denied COVID compensation to workers.
@williamgoss46914 ай бұрын
A very interesting and considered view of the state of the economy, the Gov & BOE’s actions and their consequences, plus effect on the people ‘stuck in the middle’ … Thks.
@kevinu.k.70425 ай бұрын
Great video... When I look at the FTSE index my heart sinks when I compare it to the EU indexes. Our economy seems to be as strangled as everything else after so much austerity and failure to invest.
@Cassp0nk5 ай бұрын
There was no austerity just slower increases. The government spends 42k a year per household a year and take 37k a year in tax. What would it take to not have austerity? 82k per household? It’s simply not affordable. That would be the entire gdp.
@Alex-df4lt5 ай бұрын
FTSE is dead and a waste of money
@kevinu.k.70425 ай бұрын
@@Alex-df4lt Yup, and where it goes the UK economy will follow. Arm knew what they were doing when the launched in the States.
@kevinu.k.70425 ай бұрын
@@Cassp0nk I agree with your figures excepting the rhetorical 82K. There are other ways. Increasing tax on the wealthy. Increasing tax on corps. tp a reasonable level. Then there is stimulating the economy which is the most effective method. The U.S, with their Chip Law and government inputs has driven a massive economic surge. Bean counting is not an efficacious way to run an economy and austerity strangles economies.
@user-dg6ky5kv5k4 ай бұрын
Very good
@cormackeenan81755 ай бұрын
The UK’s fundamental problem is it’s too small to be a global player and too big to be a nimble economy.
@DowntownR5 ай бұрын
Interest rates ain’t coming down. Welcome to the new Normal Poorer for longer !
@Toodyslexicforyou5 ай бұрын
Or maybe becuase inflation
@nicholaspostlethwaite95545 ай бұрын
You mean the age old normal. Better all round.
@audie-cashstack-uk48815 ай бұрын
You mean plain normal it's normal for interests rates to exist no such thing as free money and super inflation and endless money printing
@RoofLight004 ай бұрын
@@audie-cashstack-uk4881 Fantastic, I’ll add that to the overall cost of living and taxes this government has cost me to the tune of around 8 grand a year compared to 14 years ago.
@CodingAbroad5 ай бұрын
By my calculations we’ll see inflation increase to 6%
@kinggeoffrey38015 ай бұрын
As long as our savings nearly match that, I'm game.
@ybkseraph5 ай бұрын
You should also look at inflation components, in particular food and services - these are not going down
@InfinityIsland22035 ай бұрын
Nothing is going down. Falling inflation is still inflation. Many people are getting confused assuming falling inflation means prices are going down.
@abrin55085 ай бұрын
It's interesting that the central planners have a target inflation rate of 2% but have no issues printing billions when it suits them. What did people expect would happen when you dilute the value of currency. If you want inflation at 2% then that means you can't print more than 2% per year on average and they have done way more than that.
@user-xf8gh4fm8o4 ай бұрын
High real interest rates support the value of Sterling keeping the cost of imports down - and so reducing inflation
@shane_23375 ай бұрын
Do we think that we will see another round of price increases after April when the minimum wage increases and business operating costs increase? The wage price spiral hasn't really had the impact yet, there will also be a lag effect on this. As people have more money in their pocket when they first get their pay rise, the demand for goods and services will see a surge also, there are 2 inflationary pressures from just one thing in April
@RustyVanDoor5 ай бұрын
The 2% ideal inflation rate is just an arbitrary figure, it’s not critical. Anyhow, when interest rates were raised the majority of the inflationary pressure came from items we had no control over. So maybe the bank over raised and and added to the stagnation.
@penderyn87945 ай бұрын
I've just seen an article in the financial times today saying that the top 20% of the UK population are still spending like drunken sailors. This is keeping inflation more elevated than it would be otherwise. Be interesting to hear your thoughts on this. 😊
@lukeskirenko5 ай бұрын
No surpise, because they've aquired all the wealth-transferring vehicles that redistribute money from the rest of the population. That's the paradox now, it seems, that markets can continue to go up when the average person is living paycheck to paycheck.
@bepitan5 ай бұрын
i like that term ..drunken sailors.
@WhichDoctor15 ай бұрын
Hardly surprising. The wealthiest people in the UK have seen their wealth sore well above inflation for the last 5 years at least. They have more money than ever before, so of course they're going to be happily spending away. That's why fiscal policies like an increase in capital gains tax should have been used in preference to interest rates. Take money away from those who have it and are spending it, rather than those already getting poorer. But common sense is always the first casualty of politics
@penderyn87945 ай бұрын
@@WhichDoctor1 good comment. Ty
@jayc3420095 ай бұрын
@@WhichDoctor1 my main issue with taxing rich people more is the government is already overspending, look at HS2. More tax for the government to spend on silly things while our services crumble.
@Definetly_not_a_BOT5 ай бұрын
Very helpful video thank you. Is it possible to weight the influence of each factor?
@petearmstrong27785 ай бұрын
BOE probably privately accept that the UK inflation calculation is a bit flaky as some analysts ackowledge. Energy is a fudged figures eg standing charges going up; mortgage costs use a proxy, rents going up, living wage going up, mobile and broadband contract increase, car insurance a record high, Red Sea higher costs will feed through, Services sector very sticky - easier to see inflation going up rather than coming down. Even mortgage rates fropped for a few weeks but have now risen again. Prudent to see the impact of all these factors. Credit card and mortgage have both seen increased missed payments over recents months.
@arthurdixon58905 ай бұрын
My annual pay review this week resulted in a real time pay cut because it was at least 4% below inflation. So don’t blame me!
@terryj505 ай бұрын
You cannot just drop rates look what happened last time. People spend beyond their means inflation is high. Cannot fall into the trap of 2008. People became to reliant on cheap credit. It forced house prices up even more.
@conorpatrickmccarthy68005 ай бұрын
Are you able to hear audio on this video??
@BigHenFor5 ай бұрын
So many bots arguing with themselves.
@terryj505 ай бұрын
@@conorpatrickmccarthy6800yep could hear it
@paulbo90335 ай бұрын
Tell me you know nothing about economics without telling me you know nothing about economics
@terryj505 ай бұрын
@@paulbo9033 but I can understand more than you hence why I can afford rates going up and still save, I can addled to heat and eat. Unlike you. What do you have 30 to 50k on credit cards a morg you can hardly pay even on 1% interest. Maybe learn to live within your means.
@patdbean5 ай бұрын
10:30 what they over did was the rate "decreases ". They should never have gone below 2% and never have been that low for that long.
@RoofLight004 ай бұрын
Not enough housing stock was built despite various promises over the years. So demand outstripped supply. Interest rates are just a way to fund shareholders and bankers bonuses and wages. The uk has the worst and some of the highest citizens taxation in the world. Way to go uk!
@steamhammer2k5 ай бұрын
Interest rates are still too low. The reason people think it is high is because they have not been around long enough to realise this. Money is still to cheap. if it costs so little borrow then it has little value and why would you work for little value and that is where we now. High rates mean house prices will drop (price discovery) to make them affordable
@ThomasBoyd-tx1yt5 ай бұрын
Awesome. Brilliant content. Spot on. Pre Margaret Thatcher policies Thomas from 2010 to 2024. Would Tories change it no.
@BillCarrIpswich5 ай бұрын
The US Fed sets interest rates. The BoE sets the Sterling exchange rate by choosing how far to deviate from the Fed's IR choice. That is the reality.
@r1pperuk5 ай бұрын
They need a different mechanic because interest rates dont effect the top 10% crazy need to stop corporate greed
@John-ou4rm5 ай бұрын
They have to match the UK base rate with the FED rate otherwise the STG will fall creating import inflation. That's why the BOE always has their rate meeting the following day etc.
@Cassp0nk5 ай бұрын
Correct. Although forcing U.K. suppliers to grow and stop importing so much would be a long term win.
@John-ou4rm5 ай бұрын
@@Cassp0nk No UK government has backed industry. They've only backed the City of London in preference. The UK can really only export High Tech and Entertainment, it will never be competitive in mass production. Everything is about the City Financial Services, if interest rates are lower than the US large flows will go there. The UK economy will splutter along this year and get taken out as the US hits the rails in 2025.
@lh43945 ай бұрын
And the chancellor will probably change policy that might increase inflation next week, so they might hold off until after that especially after the drama with Kwasi Kwarteng
@john_doe_not_found5 ай бұрын
The economy would experience a lift if new housing construction picked up. Lots of folks looking for an affordable home. New supply, and cheaper starter home/apt type builds would be great.
@joea42345 ай бұрын
No getting away from the fact that Brexit has added higher inflationary costs to imported products & this won’t go away by raising interest rates. Whilst this is not the only contributing factor, re-joining the single market would lower this aspect of inflation.
@ilikeboringthings95 ай бұрын
I like your videos
@OllieX1235 ай бұрын
There was a good argument that previously low interest rates have been a key factor that lead to skyrocketing house prices: They made property a relatively low risk asset with a good likelihood of a high reward yield, that’s easy to acquire within a liberalised housing market.
@jackiechan88405 ай бұрын
Funny how the markets panicked about rate rises in 2018 and not now. I guess inflation wasn't a factor then.
@Goodman8495 ай бұрын
Myself sold the house an have 630k in the bank at 5% interest I'm comfortable with 31k interest. However having a home seems like an important thing to buy now. If there are a lot of people with savings then maybe you have a point. I don't know if there are many people sold and in savings like me .
@ahmadbeylouny12454 ай бұрын
Your channel was one of the reasons why I decided to leave the falling UK. Thanks a lot for this nice content.
@markburton53185 ай бұрын
Most countries are too slow to raise, too slow to lower. Why?
@JesterEric5 ай бұрын
Interest rates need to be relatively high to sell UK government debt. Lowering interest rates would likely reduce the.value of sterling against other currencies increasing the cost of imports abd therefore inflation
@Battleneter5 ай бұрын
Unemployment is a lagging indicator, if a recession linger increasing unemployment is guaranteed.
@Alex-df4lt5 ай бұрын
High inflation actually helps debtors who have fixed rate mortgages. In certain parts of Europe inflation reached 20% temporarily. Inflation is a giant money redistribution scheme. When the economy is no longer growing, you need to redistribute the money to keep the economy going.
@alexmodeen61505 ай бұрын
A low interest rate in non productive economy will lead to a disaster
@davidhorn60085 ай бұрын
I can't understand why 'The Urban Achiever' was not given the Job! - Melvin, Mark and Andrew were all appointed over His head, Why?
@davidthomas59905 ай бұрын
interest rates are normal now
@ybkseraph5 ай бұрын
You should ask why is the U.K. in recession and still high employment rate ? It’s because a large number of Brits have decided to leave the workforce or are sick. And that is a big issue.
@Jamal-Ahmed7865 ай бұрын
I think the boe will cut interest rate as soon as inflation rate falls to target.
@eddycurrant13805 ай бұрын
my credit card interest rate just went up from 10 to 15%
@RoniiNN5 ай бұрын
Why you got that?
@vtecgrin45035 ай бұрын
yet when interest rates are cut again ... inflation will increase again ...has done almost every other since early 1900's
@Mitjitsu5 ай бұрын
The issue is why is a central authority allowed to decide what the rate of interest should be, as it's always going to prioritize it's short term political interests at the expense of everything else.
@Toodyslexicforyou5 ай бұрын
So you want the central bank under what Goverment. No. Abolished stupid idea. Independent, smart move like it allready is.
@davideyres9555 ай бұрын
@@Toodyslexicforyouwho do the Bank of England work for then? When it was made independent it effectively worked for the banks. What is good for the banks isn’t necessarily good for the economy as a whole. Take the excess lending to people who shouldn’t really get loans. Add that to the excessive leveraging the banks were dong and you see why 2008 happened. As it’s the Bank of England that controls money supply it needs to be the one controlling interest rates. Anything else would be non workable.
@RoniiNN5 ай бұрын
The independent bank created the inequality
@nothereandthereanywhere5 ай бұрын
@@davideyres955 It is actually in the interest of the banks for people to have money, so they can spend it. Do you think a bank is happier, if 65 million people are rich, or just 2 million and the rest is surviving?
@Toodyslexicforyou5 ай бұрын
@@RoniiNN how?
@koggism5 ай бұрын
Keep those rate up, low rates are bad
@unholyiiamas5 ай бұрын
Question: why doesn't the UK have fixed rate mortgages like most of the US?
@terryj505 ай бұрын
It does but they are fixed for 2, 5 or 10 years
@tabernathy04285 ай бұрын
There are pros and cons. Do you think people in the U. S. who refinanced into 2% or less 30 year mortgages will ever sell their homes ? It's why there has been record low inventory. I know people with 1100 and 1200 dollar mortgages that bought homes in 2018. I know people with lesser homes who bought in 2023 with 3k mortgages. Those that bought in at low rates will never sell.
@unholyiiamas5 ай бұрын
@@tabernathy0428 that did not in any way answer the question.
@unholyiiamas5 ай бұрын
@@terryj50 Ah, I see. Thanks! Follow up question is why is this so much shorter than the typical US mortgage (30 years) or why is the US so much longer.
@terryj505 ай бұрын
@@unholyiiamas I think it’s more about the bank making money here I have only had my house here 5 years, so only renewed once I got a 2 year fixed first and 2nd was 5years here they charge 1000 pounds every time you renew. My house in the USA I had 30 years. I think they are looking at it here.
@jdmfan21705 ай бұрын
unemployment is low because they don't count education as unemployed
@azurhadzinurbegovic47075 ай бұрын
It sure was.Sunak visiting Sweden ending UK for a long time.
@getreal79645 ай бұрын
No Growth, Brexit, Aging Ailing Workforce (Covid), Increasing Wealth, Income and Regional Inequality (promoted by Government) and a total lack of Infrastructure Investment for over a decade has left our country very very sick. Unless we properly address Inequality (via Wealth Tax), Housing (building more Affordable Homes and Social Housing) and Growth (political and financial Stability attracting Foreign Investment and re-negotiating our trade relationship with Europe) then we are entering a lost decade for UK
@ridethelakes5 ай бұрын
Wealth tax, your solution to recession is more tax lol. Look up Mark Parham youtuber, he is a wealthy entrepreneur who decided to move to Dubai to pay zero tax. The whole process took him two weeks... The solution is less tax not more.
@grizzlycountry55395 ай бұрын
You are attracting foreign investments by stealing Russian property.
@penderyn87945 ай бұрын
Rich people can also earn 5% on bonds and large investment accounts in certain specialised Banks..... This keeps inflation elevated too
@Toodyslexicforyou5 ай бұрын
Yes and that is called the interest rate.
@Alex-df4lt5 ай бұрын
5% is actually very little as you need to take inflation into account. There are ways to make 10-20% per year, although with higher risk and max drawdowns.
@Hession0Drasha5 ай бұрын
No way interest rates come below 3% this year.
@markmewordz68605 ай бұрын
Print money to oblivion or pay down and throttle the economy. Keynesism, is done
@williampatrickfagan75905 ай бұрын
Irish inflation is 2.2%
@toyotaprius795 ай бұрын
Our real economy terms is on par with Greece's, while our wealth is being siphoned off by record high energy costs, insurance and rents that goes into the shareholder's dividends of speculative investors which are large enough to heavily influence the rents of "small landlords"
@nicholaspostlethwaite95545 ай бұрын
So called recession and was out again the next month. Trivial number sizes. The real thing is recessions are not any problem. No one actually notices them, any more than they feel great as there is technical growth. Sneaky graph! Rates above inflation at the start, and now barely back above. The Wrong bit is them EVER going below inflation. That must not ever be permitted again. 5% is ok only when inflation is safely below the 2% target. Higher rates are ALWAYS good things to have. The problem is always low or not high enough rates. We in the west are so well off really there is not a thing to whinge about. Pure greed imagines getting ever better at all noticeably is some right or expectation. What makes life better is the advance of tech. Not more money. When I left school pocket electronic calculators did not exist. Now I have a great pc able to create 3d artificial whole worlds, and links live to the entire world, instant translation too, a phone in my pocket wherever I go. Digital cameras replaced old film ones, what a usability and freedom from costs they are. Information easily found, not a hard trip to a useless local library. Goods of infinite variety never in old high streets turn up at my door days after I buy them. I could make things on a 3d printer, with finer detail than old model Airfix kits, or many other similar devices at home that once were the domain of vast corporate machines. Raise rates, make the world better, less use of debt.
@gwyn1115 ай бұрын
To not trash the currency against the USD and other currencies which are not going to drop. Time to pay the piper after QE and ZIRP for too long and put off the real pain of the 2008 Credit Crunch
@kenharrison26705 ай бұрын
Slash Town Hall gold plate pensions
@daftjunk20085 ай бұрын
DISTRIBUTION, DISTRIBUTION, DISTRIBUTION
@eskutts5 ай бұрын
Low interest rates encourages reckless lending creating a huge Debt crisis in the long run which will cause recessions and depression etc. So low interest rates are actually not viable solution in the long run. Remember what caused the 2007-08 global recession. Hence loans must only be given after thoroughly checking the Clients credit worthiness. Period
@UknownUknown-rk3cp5 ай бұрын
That's not what caused 2008 Global Crisis but nice attempt at sounding smart - giving loans to people that can't repay them wasn't the problem, the problem was the pyramid scheme that was built by layering, repackaging and layering said debt few times over which was fully supported by regulators until it blew up. Keeping interest rates low has no downside as long as you actually regulate the banking industry
@lukeskirenko5 ай бұрын
This raises the question as to what a 'normal' rate would be, outside of just using relative terms. Historical average? And there are all sorts of things changing in the banking infrastructure that change monetary dynamics, reserve ratios and types of lending vehicles, regulations around degrees of lending. In my opinion, no-one has a clue what's going on, and the theatre of the governor of the BOE as magician figure is ridiculous. Financial journalism is also ridiculous, most of the time it's also theatre/soap opera, it relies on the knowledge asymetry between consumer and journalist to give the consumer the impression that there's genuine knowledge/apha being provided. And most time is spent by journalists second-guessing what the BOE may or may not do, whether there'll be a miniscule change of rates based on the whims of a handful of people who set policy. We're still living in the dark ages in this domain, compared to the technological sophisitcation of other areas.
@kanedNunable5 ай бұрын
that was american banks giving 1% mortgages and dodgy bonds. nothing like what we saw.
@lukeskirenko5 ай бұрын
@@UknownUknown-rk3cp But who is going to regulate the banks in the UK when they're the dominant power-base? Similarly, how can other sectors like manufacturing grow when the pound is kept so high as a result of demand for 'financial services'? We seem to be in a dead-end.
@toyotaprius795 ай бұрын
Lending towards those who think themselves wealthy enough to take on the risk. I don't know anyone who seriously thought they can get out of their way to borrow at 0% other than couples who waited years to buy a home, and a certain boss of a Mercedes dealership and landlord of a industrial office in Dublin...
@MnemonicCarrier4 ай бұрын
Inflation coming done means absolutely nothing to Joe Tax Payer. The damage is already done - high inflation have already pushed prices up through the roof. Inflation coming down doesn't mean prices coming down - most people don't understand this.
@acefreaky29885 ай бұрын
Low interest rates led to speculative house buying, mass Immigration kept wages low. House demand high and destroyed the country's GDP with mass competition for low end jobs. We literally gave our kids the worst poison chalice possible. Leaving the EU cemented these inequalities and where otherwise there might have been a mass exodus of our youth to better opportunities we instead have other people's youth fighting for the same jobs. Reducing mass Immigration, a rise in interest rates to kill off the greed within housing and a UK centric jobs market will be the only way to hold this greedy self centred country together..and still F the socialist nightmare that is the EU.
@angelachanelhuang16515 ай бұрын
education in america is free
@robertmaitland095 ай бұрын
Brexit trade barriers don't help.
@toyotaprius795 ай бұрын
Something something unsustainable purchasing behaviour of tge very welathy ... Something something extortionate rents ...
@stefnirk5 ай бұрын
The UK is in a stagflation where the real "danger" is wage growth. The wages have not kept up with inflation and the cost of living; wages are highly competitive, and businesses are willing to hire; therefore, there is low unemployment. However, there is only a question before unions and general voters demand higher salaries, pushing up inflation. Lowering the interest rates lets inflation loose, higher consumer demand, more borrowing and more leverage to demand increased wages.
@ilikeboringthings95 ай бұрын
We are a poor country because of GFC, Austerity, Covid and the Russia/Ukraine war. We need to reset expectations, invest wisely and aim for a steady 2% increase in productivity per year. This productivity can be achieved by investment in renewable energy, selective immigration and leveraging AI and robotics. And whilst we are at it we should build quality low rise housing blocks, e.g. 5 stories, no cladding, high ceilings and spacious rooms etc.
@Toodyslexicforyou5 ай бұрын
Good idea though, I think there could be a higher multiple effect on expenditure on NHS tech department report saying it was at least £30billion + behind. Digitation was one of the major factors in the strong growth in pre 2008
@markwalker26275 ай бұрын
You missed out the elephant in the room...Brexit. we are 13-15% poorer as a nation because of it.
@chrysalis41265 ай бұрын
High ceilings and spacious rooms are more expensive to heat.
@Toodyslexicforyou5 ай бұрын
@@markwalker2627 that is 1 factor.
@rubencouso74974 ай бұрын
@@markwalker2627It is happening in the EU and we did not undergo "Brexit". It is quite evident in Spain for example
@Pilotalphapapa5 ай бұрын
Interest rates need to go up!
@terryj505 ай бұрын
I agree for us savers, people need to learn to live within their means. Stop getting debt.
@Toodyslexicforyou5 ай бұрын
@@terryj50”stop getting debt” like a mortgage?
@terryj505 ай бұрын
@@Toodyslexicforyou I mean on credit cards that you are buying junk you don’t really need if you don’t have a morg your rent anyway
@nothereandthereanywhere5 ай бұрын
@@Toodyslexicforyou Mortgage is the only debt people should work with in their life. Everything else should be 'as you need'. Economy would adjust to it. That being said, there are people that literally have no choice in this and have to borrow. Try to have a family and you will be squeezed out.
@Toodyslexicforyou5 ай бұрын
@@terryj50 what is your sentence trying to say? If your saying that people waste money. Ok. If your trying to say interested rates don’t matter on mortgages then your wrong.
@conorpatrickmccarthy68005 ай бұрын
No volume on this
@akhusal5 ай бұрын
Surely inflation is self levelling, as prices go up people buy less which reduces prices.
@shane_23375 ай бұрын
They thought this in Turkey and decided not to raise the interest rates, then ended up with 100% inflation before finally putting the interest rates up and bringing it back down. There are real world examples to show this just isn't the case
@cobbler405 ай бұрын
BoE forecasts are always wrong.
@Anonymos3215 ай бұрын
No voice !
@economicshelp5 ай бұрын
could you try again, I think glitch with youtube
@jasonchampaneri5 ай бұрын
We really need a major change in the uk. What that is I don’t know, but we need a boost somehow
@bjrnhjjakobsen21745 ай бұрын
Soon the small boats head for continental Europe filled with native Brits on the search for a better life🤓
@oldskoolmusicnostalgia5 ай бұрын
Bear in mind that interest rates are just ONE factor coming into play in economic performance and inflation. However this is lost in the media narrative of portraying central bankers as firefighting-like heroes, the central bankers themselves like the attention so they overplay their own abilities instead of admitting there's a lot of factors they have no control over. If there's a war in Ukraine that makes cereal grains costlier, those commodities will remain costly regardless of whether the interest rate is set at 0, 10 or 50%.
@dotagedrain70515 ай бұрын
Rich getting richer... poor get poorer.. crime everywhere...
@gordonwilson16315 ай бұрын
Dismissing QE is easy but nothing else could have been done. The way it was used was wrong. Instead of giving it to people directly they inflated assets and further enriched the rich. Interest is usury. A very crude tool to control the money supply. It is taxing people (a poll tax). Taxing money itself is the best way. Profits and price gouging were not mentioned. Look at corporation profits. Energy prices doubled and have only reduced a bit. There is the inflation. Money going to savers (who literally have money) comes from somewhere else. It is not earned. Having more money gains more interest, for no work. What equation is that? There’s your increasing inequality. Usury was once a crime and a sin against God (I’m not religious) but Shakespeare’s The Merchant of Venice is never performed now. Pounds of flesh are metaphorically being taken all around.
@nozmulm5 ай бұрын
Time to move to America like prince Harry, he knew it all along
@eddycurrant13805 ай бұрын
dont reckon the Tories want to get re-elected
@buy.to.let.britain5 ай бұрын
i guess people dont want to work too hard....to own nothing.
@nothereandthereanywhere5 ай бұрын
I live in Bournemouth. If I would want to save for a good flat, I would have to work 60+ hours to earn enough to afford a good living. I choose the other option, save and move away and have a better life(Scotland)
@buy.to.let.britain5 ай бұрын
have you checked scottish house prices recently. they are equally as insane.@@nothereandthereanywhere
@celestecanyon5 ай бұрын
Aren't they compelled to keep interest rates in line with their booming uncle Sam hegemon? Farage's brexit Britain "taking back control" 🤣 Colony of trump😶
@rubencouso74974 ай бұрын
Colony of Biden, who is a puppet of the Angloamerican "natoist" deep state, to be honest.