Cost of living crisis

[Nearly Sane]

In normal times interest rates rises  are a blunt unfocussed tool, just now they're a dangerous examole of doing something for the sake of it. UK personal debt, combined with the Brexit cost of living increases, and the energy cost increases means carnage.

https://www.bbc.co.uk/news/business-62405037

[Aruntraveller]

I understand that raising interest rates aren't helpful in the situation we find ourselves in, namely stagflation.

The question is what should we be doing?

This is a genuine question because I don't have a Scooby.

My own conclusion is that we're well and truly fucked.

I'm sure someone will be along to tell me I'm being defeatist, but those sunlit uplands are incredibly elusive.

[Anchorman]

I understand that raising interest rates aren't helpful in the situation we find ourselves in, namely stagflation.

The question is what should we be doing?

This is a genuine question because I don't have a Scooby.

My own conclusion is that we're well and truly fucked.

I'm sure someone will be along to tell me I'm being defeatist, but those sunlit uplands are incredibly elusive.

   

Apparently, the UK will perform worse than either the US or EU economies, and have higher inflation to boot.
There's no chance of this golden trade inrush happening in the next decade, but, hey, on the bright side, the food bank numbers are rising, even if their supplies are drying up......

[Nearly Sane]

I understand that raising interest rates aren't helpful in the situation we find ourselves in, namely stagflation.

The question is what should we be doing?

This is a genuine question because I don't have a Scooby.

My own conclusion is that we're well and truly fucked.

I'm sure someone will be along to tell me I'm being defeatist, but those sunlit uplands are incredibly elusive.

My initial reaction is like the old joke about an Irishman giving directions 'Well, I wouldn't start from here!'

Other than that, don't move the cap on energy prices, indeed, bring it back to where it was before. Use the windfall from taxes on petrol etc to cover any costs on this. Look to having a windfall tax that actually works. Restore the £20 'Covid bonus' to Universal Credit. Move the country onto a similar footing to dealing with Covid. Have a Chancellor or Deputy  who's visible and active at all times - both Zahawi and Clarke are on holiday, not that I saw much before other than Zahawi losing in the leadership race.  Recall parliament, and have emergency sessions on measures to support the poorest. Restrict interest rates on credit card debt and loans. Work with BoE on the guidance as regards inflation.

[Nearly Sane]

I stayed away from any radical solutions such as nationalising things or govt of national unity (don't even have a govt of party unity just now). The point here is that any solution needs to be agile and responsive to corcumstances but that's about the whole move to treating it as an emergency applies. Unlike Covid, I don't think daily bulletins are useful, indeed other than 'feel' not sure they were for Covid. But weekly would be good.

I'd also like to see similar from the devolved govts for the areas they have control of. Ideally this would be done as a unified process.

[ekim]

What actions are people taking because of the rising cost of living?

https://tinyurl.com/mpehcvt6

[Nearly Sane]

I'm grateful that Sunak and Truss have properly started talking about the issue of the cost of living crisis but as with so much of their policy annoucements, they seem more about placing themselves against each other rather than any considered approach. I suppose not that surprising given that they were part of the cabinet while the crisis was stoked up.

https://www.bbc.co.uk/news/uk-politics-62453813

[Roses]

When I did my grocery shopping at Tesco this morning I noticed that the price of petrol had come down quite a lot. It was £1.72.99 a litre.

[Steve H]

When I did my grocery shopping at Tesco this morning I noticed that the price of petrol had come down quite a lot. It was £1.72.99 a litre.

Other things have risen in price. When I bought some vodka, I discovered that it had gone up to £22.00, but I'm still going to party like it's £19.99.

[Roses]

Other things have risen in price. When I bought some vodka, I discovered that it had gone up to £22.00, but I'm still going to party like it's £19.99.

Would you give up alcohol if it got too expensive?

My husband and I used to drink in strict moderation, wet enjoyed a glass of wine or a small glass of a single malt whisky. However, due to the number of meds he has to take it is inadvisable for him to drink alcohol. I have given it up too in order to support him.

[Dicky Underpants]

Other things have risen in price. When I bought some vodka, I discovered that it had gone up to £22.00, but I'm still going to party like it's £19.99.

How about making some more of that elderberry wine?

[Steve H]

How about making some more of that elderberry wine?

I intend to, in a month or so.
Roses - joke! I've never drunk vodka in my life.

[Roses]

I intend to, in a month or so.
Roses - joke! I've never drunk vodka in my life.

I tasted it once and disliked it so never drank it again, that goes for gin too.

[Aruntraveller]

I tasted it once and disliked it so never drank it again, that goes for gin too.

It depends very much on the vodka, there is a huge variety available, but if you are drinking the bog standard stuff you might just as well open the paint stripper. Cheaper in these difficult times too.

Anyway, Bertolli spread in Sainsburys is now up to £2.85 from around £2 at the beginning of the year. That is some % increase. I've traded down to Flora Buttery (£1.75) (sounds like a Carry on character) as it works just as well when I'm baking biscuits.

[Gordon]

Other things have risen in price. When I bought some vodka, I discovered that it had gone up to £22.00, but I'm still going to party like it's £19.99.

  - you're a Prince among men.

[Nearly Sane]

Higher and higher

https://www.bbc.co.uk/news/business-62475171

[Nearly Sane]

The cost of living, the BBC, and Only Fans!


https://www.bbc.co.uk/news/newsbeat-62377737

[Nearly Sane]

Link to the Enough is Enough campaign if you want to sign up


https://wesayenough.co.uk/

[jeremyp]

Link to the Enough is Enough campaign if you want to sign up


https://wesayenough.co.uk/

Pie in the sky.

Unfortunately their demands, although ostensibly great cannot be achieved.

Give everybody a pay rise: more inflation.

Slash energy bills: how? There's a war going on, donchaknow

End food poverty: how? There's a war going on, donchaknow

Decent homes for all: the magic wand again.

Tax the rich: OK up to a point. Of course we already tax the rich but they could probably be taxed a bit more. Unfortunately, they are also the ones with the means to go elsewhere so they don't have to pay tax.

We are caught in the confluence of a number of historically bad events. We are coming out of a pandemic where the government spent a lot more than was fiscally prudent. We are in the early years of Brexit and there is a war going on between two of the largest energy producers and two of the largest wheat producers in the World. I doubt if there is anything anybody can do to avoid a nasty recession.

There are no magic bullets here.

[Aruntraveller]

There are no magic bullets here.

My friend Liz says there is.

Cut taxes and we'll be able to avoid a recession.

You are just one of those nasty declinists.

[jeremyp]

My friend Liz says there is.

Cut taxes and we'll be able to avoid a recession.

Even if that were true, it doesn't solve the housing crisis or food poverty or the cost of energy.
 

You are just one of those nasty declinists.

I don't think the problems are irreversible. I think we are seeing the inevitable consequences of a number of quite bad things happening at once. Even the pandemic alone would have led to high inflation because the government had to borrow or print money to finance the measures that it undertook.

[Dicky Underpants]

It depends very much on the vodka, there is a huge variety available, but if you are drinking the bog standard stuff you might just as well open the paint stripper. Cheaper in these difficult times too.

Anyway, Bertolli spread in Sainsburys is now up to £2.85 from around £2 at the beginning of the year. That is some % increase. I've traded down to Flora Buttery (£1.75) (sounds like a Carry on character) as it works just as well when I'm baking biscuits.

Sainsbury's semi-skimmed milk £1.05 a pint (at least in the small branches - do they call them locals or express?)

[Dicky Underpants]

My friend Liz says there is.

Cut taxes and we'll be able to avoid a recession.

You are just one of those nasty declinists.

Sorry, sometimes I need one of those Dr. Sheldon Cooper /irony indicators when appropriate.

[Nearly Sane]

.

[Udayana]

The Home Office seem to have rediscovered their normal fall-back:

https://www.theguardian.com/uk-news/2022/aug/14/uk-farm-workers-kent-debt-indonesian-brokers

Bringing back slavery!