Gareth Barry Conlon
Well-Known Member
- Joined
- 5 Sep 2014
- Messages
- 15,927
The skill in a good parody account is making it very close to the original but just throw in a little nugget. Is it real - is it real - is he that stupid - I think he is.
The Conservative Party
- Thread starter dave_blue12
- Start date
bluethrunthru
Well-Known Member
bluethrunthru
Well-Known Member
FUK - I do hope so - will show how stupid they are.
metalblue
Well-Known Member
Because they redefine what inflation is mate! Inflation to them is month on month rises that is more akin to how hyper inflation works. However they go further to say that so long as that month on month inflation is the same (whatever the number is) then it’s stable and good inflation. So according to MMT:
1. My shreddies are increasing in price every month by 50% - this is “stable” inflation and welcomed by MMT.
2. Every January by shreddies go up 600% - (same as going up 50% per month - ignoring any compounding effect) according to MMT this is not inflation.
Despite containing more sugar than sugar puffs I love shreddies so need to be paid more to afford them, which in turn means my company needs to charge more for its product or sack someone to reduce costs. Their idealism is not without merit but the way they think it can be achieved is absolutely bonkers.
Pedestrian
Well-Known Member
- Joined
- 15 Oct 2014
- Messages
- 2,495
metalblue
Well-Known Member
They try and do a turn and this is the thanks they get.
I like the party idea, that’s quite the business head you’ve got there mate. We’ll make a Tory of you yet
west didsblue
Well-Known Member
- Joined
- 2 Oct 2011
- Messages
- 33,977
This one’s even funnier. Great sales pitch for a Single Market. It’s got to be a parody!
Thinking about it he's the MP for Wokingham which means 1632 is one of his constituents. Or maybe he actually is 1632.
Gareth Barry Conlon
Well-Known Member
- Joined
- 5 Sep 2014
- Messages
- 15,927
Its genuinely insane that he puts this stuff out. The fishing industry is fucked and he wants more fishing boats. Johnsons WA fucked over NI and he voted for it and now its 'the EU's approach to NI'!
Rascal
El Presidente
I am still learning about it when i have time, been really busy the last few days with meetings.
Redefining inflation is no bad thing, Thatcher did it in the UK and the obsession with it cost 2 million jobs.
Rascal
El Presidente
It shows they haven't thought it through if I can make stuff like that up within minutes.
Imagine what the real scammers could do with it.
Why not make sick pay decent, if they want to keep people at home.
This government will get no thanks from me ever, they are useless and they have used this crisis to line their mates pockets.
Rascal
El Presidente
If supply outstrips demand, that is deflationary. Too much money chasing too few products ends in inflation. So MMTrs will use a Job Guarentee scheme that means everyone is employed and undersupply doesn't become an issue.
You make sure that the Job Guarentee doesn't interfere/compete with private output because that will cause wages to increase.
It’s worth noting that inflation is also good for some. Inflation is not uniform in what prices go up and in terms of who benefits. Policy should therefore regulate and manage these things. There are winners and losers with inflation. Rationing can be a solution, bond issues can be a solution, regulating and breaking up monopolies can be a solution, targeted spending is a solution, regulating capital flows is a solution.
Inflation in specific areas can be positive, with a shortage of supply leading to more creative solutions with modes of production and technology making leaps that unlock productive potential.
People think that MMT says that debt is written off. It doesn’t. It says there is no such thing as sovereign government debt! Government creates money with its recording of ‘deficit’, that is spending into the economy. There is no need to require governments to issue bonds to cover the difference between ‘deficit’ and corresponding ‘money created in the economy’ across its accounting pages. The government produces money for the economy (productive activity) of the nation it serves and it does not ask for it back as a debt (they may tax of course, but this a different thing and is to redistribute, manage inflation and ensure the currency is valued, etc)
Fred_Quimby
Well-Known Member
A new East-West line is going to be built. From where to where you may ask? Hull to LiVARpool? Leeds to LiVARpool? No, not indeed. From Oxford to Cambridge. You know the cities they are building a brand spanking new motorway between. Not ‘Tory’ country by any chance??
www.bbc.co.uk
Oxford and Cambridge ‘left behind’???
East West and Northumberland rail lines get £794m boost
The government says the funding will connect "left-behind" communities.
www.bbc.co.uk
Oxford and Cambridge ‘left behind’???
metalblue
Well-Known Member
Inflation is actually essential, it erodes debt. But it has to be managed (and not ignored by redefining what it means when what people feel in their pocket is really what matters). Inflation is really just reducing the buying power of the money in your pocket. Price shocks based on supply/demand cannot be managed by simply flicking a switch and increasing output in any given sector there are more inputs than just available work force you can, however, control the demand side by rationing but that would be counter to a growth economy (and we see this demand control in certain political systems).
In any case the starting point is that you must have controlled inflation, and let’s assume a healthy inflation rate is 3% per year. This is effectively saying I will increase the money supply in the economy by 3% each year and everyone can expect a 3% pay increase. Your economy cannot have a deficit (otherwise you won’t be able to control inflation at a healthy rate due to the money supply increase). So you must start with getting that spending under control with, you’ve got it, austerity. But that’s OK because it’s just a bitter pill the economy needs to swallow to achieve your ideologically beliefs (sound familiar?).
Now your next objective will be to figure out what to do with your extra 3% of cash...around £65bn based on UK GDP per-COVID. Firstly you’ll spend half, £32.5bn, employing the 1.3m unemployed (assuming you employ everyone irrespective of health or capability). So now you give NHS workers a 3% pay rise, that’s another £1.5bn gone. Teachers? Best part of another £1bn gone so let’s say you’ll spend £5bn giving public sector a 3% pay rise...and as I’m sure you’ve criticised the tories for that level of pay rise you’d want to give them a lot more. State pension needs to go up in line with inflation so that’s another £0.5bn. So that’s £40.5bn spent just standing still. You’ve got £25bn left, we need new hospitals, more hospital beds, more nurses, more teachers, more research into treatments, new schools, new roads, and so on and so forth. So to do everything you want to you’ll need to print more money. And so inflation goes up further and starts moving from healthy to overheating.
incidentally I can do more by borrowing money from international markets as I am not constrained by inflation targets.
On the principle of zero unemployment just having people work where there is no demand for product is counter productive.
bluethrunthru
Well-Known Member
23 days in to a new dawn and its falling to bits
Rascal
El Presidente
You are saying how things are, not how things can be.
Full employment is not counter productive apart from to capitalists as full employment means they have to offer decent wages to attract limited resources (workers) It is surely better to pay somebody a wage to say clean up graffiti than have them sat at home.
There has never been a need for austerity.
metalblue
Well-Known Member
Mornign mate, no I’m simply trying to see how it would work. Assuming a 1:1 ration on new money to inflation then you’re more limited to printing new money into the economy than you are in borrowing it. MMT overcomes this slightly annoying fact by redefining inflation into something entirely meaningless.
Full employment is great. Cleaning graffiti or picking up rubbish are great ideas but that doesn’t help with increased output it simply makes out environment better (and that’s a good thing).
We need to produce things people want not just for the sake of it - and that is where the capitalism system excels, it creates employment based on demand that creates wealth. Your problem to solve is to replicate that part of the system where the wealth does not exist in the hands of the few and pay is more equitable. I remain unconvinced how MMT provides better answers than the current system based on printing money without running into an extreme inflationary cycle.
Labour introduced austerity after the WW2, was that ideological or necessary?
M
M
mat
Guest
"Left behind what"?A new East-West line is going to be built. From where to where you may ask? Hull to LiVARpool? Leeds to LiVARpool? No, not indeed. From Oxford to Cambridge. You know the cities they are building a brand spanking new motorway between. Not ‘Tory’ country by any chance??
East West and Northumberland rail lines get £794m boost
The government says the funding will connect "left-behind" communities.
Oxford and Cambridge ‘left behind’???
Another line for the rich kids to fare dodge and threaten me with Daddy if I challenge them for commiting fraud/avoiding paying.
Tory bastards.
Zuriblue
Well-Known Member
Another member of the 2019 intake showing his class.
bluethrunthru
Well-Known Member
they photoshopped his pic ffs