Is Labour Economic Policy any Different to Conservatives?

[@MatthewRivers-Davis]

Well done on hitting 60K subscribers

[@economicshelp]

Cheers!

[@therealjag]

​@economicshelp well deserved, one of the best channels out there

[@samtripp6752]

At what point can the cut backs end. Ever since I was young it’s just been cut back after cut back. Fast forward 15 years fuck all has improved. My dad always said it’ll improve within time. I’m yet to see the evidence of this!

[@ravindra7791]

Unfortunately the UK has structural issues . If you look at the 4 biggest spends in the latest budgets - NHS, Pensions , Benefits and Interest on existing debt none of these will take the country forward. The only way out is to make significant changes to one of these or perhaps two of these spending items.

[@malthusXIII-fo3ep]

It all went wrong from 1997....including the insanity of open borders.

[@willyhill7509]

There have been no cut backs, tax and spending have increased.

[@samtripp6752]

@@willyhill7509 are you serious. What explains all the local toilets being closed down for 10 years, councils not looking after new build areas now you have to pay a service charge, councils not keeping on top of the state of the roads, cuts to social services and general maintenance of local historic buildings etc. the list is endless. Yet our council tax keeps going up but we get less and less from it each month. The country’s falling apart!

[@GonzoTehGreat]

​@@samtripp6752Most council tax is now spent on Social Care. The problem is the Welfare State has become too bloated and needs cut backs, (Yes, that's right!) because it's eating up too much of the budget. However, pointing this out is unpopular, so nobody is willing to address it.

[@gerhard7323]

If governments effectively keep giving ever more money to already rich people in order to keep these equity and asset bubbles inflated - that's where much of the damaging inflation is - then something has to give somewhere in the system. Any 'growth' we're seeing is largely an illusion and mainly just benefits the relatively wealthy few. Trouble is this is then used as the excuse for wider tax rises, as we've seen recently with NI increases, and raises the prospect of ever more cuts in public spending in order to allegedly balance the books.

[@godskitten49]

I fear nothing will give, hence, nothing will get better. The populous is too distracted with modern (of the time) entertainment and pursuits secularised from their own wellbeing ('luxury' ideologies and/or movements) to be the medium of needed radical change that in the past centuries it was. Our institutions have proven themselves to be of inadequate intuition and competence to adapt themselves to the ever-shifting problems of continued governance, instead continue with the same, at this point entirely ritualistic, processes and ideologies, that are now decoupled from reality. I don't expect this deprecating period of history to improve any time soon nevermind within the lifespan of currently living or born generations.

[@kwood1493]

Governments don’t seem to know how to promote economic growth

[@egrif9303]

Yes. The worst were the ones from the last 14 years. We had the lowest investment of the g7.

They do, but they don't want to do it because it means reducing the state. Argentina's new Govt. is the proof.

[@Tuppoo94]

Measures that would actually promote economic growth last much longer than the typical election cycle, while taxes can be cut overnight, and almost everyone believes they're paying "too much" tax. So tax cuts are much faster, much more popular, much more difficult for your opposition to reverse, and much less effective in stimulating economic growth than for example investing in education.

[@garyb455]

There has never been any austerity, in 1997 when Labour came to power Government spending was 35%, today its 45% that's why the Country is in trouble, spending is out of control.

[@stephenthomas3085]

@@garyb455 It is pretty clear that austerity does not work, you end up spending more in the long term as delays lead to more complex problems and, eventually crisis management. The NHS and educational estates exemplify this; there is a vast backlog of work required and, without remediation, the situation deteriorates meaning even more costly work in future.

[@richardcoppack5357]

If increased wages aren't accompanied by increases in productivity, then they are inflationary.

[@ThePlayerOfGames]

Which is why the 1% richest ever increasing their cut is so inflationary; they provide 0 productivity. All wealth that goes to capitalists instead of workers is built-in inflation.

[@petermee6049]

Think the best way to put it is Mis-managed decline

[@egrif9303]

The Tories mismanaged on purpose. Sociopaths like to mismanage but make it look like they’re helping you instead of lining g the pockets of their friends. Labour mis manage because they’re incompetent.

[@ch0293]

Yep, it should have a law that governments must never get indebted at first because the taxes generated buffers against economic shocks, but because governments and societies are corrupt from homo sapiens, the Bankers and capital owners control the world. Hope evolution finds it's better shape in the future

[@gerhard7323]

Despite the popular narrative today, if you look at the economic fundamentals in the 1970s in the UK we'd never had it so good, even given the oil crisis. The neo liberalism of Thatcher really marked the beginning of the end and EVERY UK government since hasn't deviated significantly from that playbook.

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[@hclee921]

Thanks!

[@economicshelp]

thanks

[@Pirake123]

Government should be purely focused on increasing productive output of the economy.

[@alanjewell9550]

I think the government need to be much more aggressive with taxing excessive wealth. It's widely recognized that the level of wealth inequality is at record levels & not changing. The Tories have seeded a very unhealthy relationship to taxation on a collective level, and promoted ideals of low taxation without being honest about the kind of society it creates, that few actually want at all.

[@eddieharris6004]

Totaly agree. 💯

[@HaydenCyclist]

They need to increase capital gains tax, forget about a 'wealth tax'.

[@SamWilkinsonn]

The government don't care about us. We're now a corporatocracy, they unsubtly serve the ones with 'excessive wealth'.

[@ravindra7791]

The wealthiest will leave the country and companies will decrease investments. It is a globalised and competitive world.

[@harrisonbergeron9746]

@@ravindra7791 but they avoid as much tax as they can already, why bother

[@3d1e00]

I thought I heard the phrase "low business competence". Nearly thought the truth got out then ;)

[@nker2359]

Yes, it is very different More taxes and more spending

[@jontalbot1]

Big difference between spending for consumption and spending for investment. That is why the IMF supports the budget

[@HaydenCyclist]

​@@jontalbot1 Labour isn't investing. What are they investing in? 5% cuts across all departments, increase in national insurance, and they left capital gains tax alone.

[@Clickificationist]

@@HaydenCyclist Did you actually watch the video where this question is answered?

[@HaydenCyclist]

@Clickificationist uk has 1.6 trillion worth of infrastructure that needs investment. Keir is offering 16 billion in investments for this year, most of which are for transport. We're a 3 trillion dollar economy, 20 billion in investment in infrastructure is literally nothing.

[@ravindra7791]

​@@jontalbot1The four biggest spends in Reeves budget were - NHS , Pensions, Benefits and Interest on debt. None of these are investments, health marginally if it is spent wisely but they agreed for the increase without commitments to efficiency.

[@ThomasBoyd-q6y]

Awesome excellent video. Spot on.

[@Kaizen917]

Its easy to say the government isnt being radical enough but the UK reality is one of a lot of vested interests that will act as barriers left,right and centre. Its arguably more so that other countries when Britain has this habit of getting stuck in the past with old laws, traditions and a general "it was always thus" type of mentality.

[@GonzoTehGreat]

Agreed, but that's why electoral reform is essential and indeed, long overdue. Westminster needs to stop treating the symptoms and address the causes, but unfortunately in the case of the largest parties - Conservative and Labour - it's not in their interest to do this...

[@Kaizen917]

Agree that could stir things up but having PR model has its own problems that can backfire in the UK big time if thats the only bit that changes. In fact, the European experience with it has shown that governments either have to swallow a bitter pill and try to work together in coalition governments or it can grind their countries to a halt (sometimes for years).The latter does happen and I struggle to imagine how the UK can compromise when a) governments with one party small majorities historically saw themselves as being too limited to act and b) the UK didnt quite like the idea of having to compromise on anything within the EU which works as a coalition of multiple states (hence Brexit).

[@GonzoTehGreat]

@@Kaizen917 Moving to a more democratic system than FPTP, by adopting PR, would indeed be a welcome and much needed change to avoid the current "see-saw" policies and encourage cooperation over competition. However, this would only be a first step, as the problems are deeper than that. The current culture of UK politics (especially career politicians, who lack both real world management experience and relevant qualifications) is no longer fit for purpose and also needs to change.

[@ColinHarvey78]

I agree with you that public sector wage rises are sorely needed. There has effectively been a perpetual public sector pay freeze, or decrease when inflation is taken into account, since 2010. I don’t think it’s likely restoring public sector pay to appropriate levels will raise inflation - after all they will still need to budget - but I think it’s likely to improve spending on private sector services and see a net improvement to the economy. The increased tax revenues will dampen down excessive spending (which would lead to demand-pull inflation) but also improve public sector debt so I think it’s likely to be a more self-perpetuating growth than the OBR and others have calculated. Plus with more spending by average people leading to more demand for services business, I think this is a route which will see that vast majority of people feeling better off.

[@garyb455]

There has never been any austerity, in 1997 when Labour came to power Government spending was 35%, today its 45% that's why the Country is in trouble, spending is out of control.

[@malthusXIII-fo3ep]

Wishful thinking here Colin. Surely, it's even more vital for many millions in the private sector on considerably lower wage rates than the cossetted public sector to catch up on restored pay....but that will never happen.

[@tropics8407]

Correct ✅ This is their plan. The public sector now needs to step up, produce and repay the confidence placed in them. Have they ever responded like this before ?

[@nitroformula05]

Sorry but the public sector in the UK is far too big, at a similar level to the private sector. We need to massively reduce the public sector burden and focus on building businesses in this country….

[@tropics8407]

I can’t see it happening myself. The public sector will be the millstone it has always been but maybe the extra money they spend on the high street might help the private sector 🤷‍♂️ the die is set, will be interesting 🧐

[@LostMysteryClassics]

Love your channel! I was wondering if you could make a video explaining why the inflation target is 2-3% and not 0%? And why the measures include certain things in the basket and not others (notably mortgages). Thank you!

[@mattanderson6672]

Fantastic discussion Excellent analysis Thank you Sir I always love listening to you

[@ravenseft]

George Osborne, the worst UK chancellor of the last 100 years.

[@cobbler40]

We have a welfare system which is unsustainable for a country in decline including the expensive paltry state pension.

[@harrisonbergeron9746]

nobody will make benefits means tested though, too may rich people like free money

[@PhilipKelly-z9r]

Your comments re welfare state are true, but the reason we have a poor state pension is we pay little into it!!

[@malthusXIII-fo3ep]

@@harrisonbergeron9746 And yet they pay oceans in tax,...Rolling Stones, Rod Stewart etc.

[@harrisonbergeron9746]

@@malthusXIII-fo3ep lol good one

[@ThePlayerOfGames]

We spend more on administering Social Security than we do on delivering actual Social Security. Switching to Universal Basic Income has been proven to be effective at tackling the problems that such financial subsidies are supposed to tackle whilst also reducing the administrative and financial burden of delivering Social Security.

[@bernieburrows3731]

If it's the banks that determine interest rates, surely they alone, increase and decrease the amount.. Why are they given so much power? Why is growth in the economy more important than people?

[@VincentRE79]

They included the money outstanding on Student loans in that figure, there is no significant improvement in our debt situation.

[@IshtarNike]

Student loans are an investment not a debt.

[@VincentRE79]

@IshtarNike Very unlikely they will all be repaid, would then consider it a "Risky investment". Even reports today of pensioners taking courses and qualifying for student loans that they know they will never repay as pensions are not classed as income to be used to repay student loans.

[@michaeld5888]

I am sure they all go to the same dinner parties where national policy is really discussed and determined, well outside of the show put on in parliament to make us think we are party to it.

[@sky37blue]

Correct.

[@cobbler40]

I think Starmer is paving the way for Farage !

[@sky37blue]

I fear you are correct.....followed by more of the same under Farage.

[@llljustcallhimdave]

@@sky37blue Farage will be a worse than anything before, he will be having to pay back all the people he is taking money from. The NHS will be finally killed off under "Good old Nige", has to be able to let his backers in to push American style "Health care"

[@DK-oy6ee]

Agreed. And that gives me hope

[@sky37blue]

@DK-oy6ee Farage is the establishment in the same way as Starmer is. He might not share exactly the same range of bonkers ideas as Starmer but make no mistake he will have his own. Nothing will really change under Farage apart from the colour of the tie on the people doing the plunder.

[@DK-oy6ee]

@ So we are all doomed? What is your solution?

[@PhilipKelly-z9r]

I could not follow the 2 graphs you showed re government spending on nhs as a % of gdp. Your words seem (to me!) to be contradicting your graphs?

[@sho-m-er5194]

No government for the last 80 years has had a decent industrial strategy, that is why we have now had a massive trade deficit for the last 25-30years

[@hujiosnurgio2940]

Strange austerity where within a little more than a school life (13 years + 3 years at university) the national debt doubles from almost 50% of the GDP to 100% of the GDP. The debt amount in 2007 was 666 billion, in 2024 it will be 2,700 billion. where did all the money go? Where is all the public debts that have more than tripled in monetary size. Which bag did it end up in? State finances have gone from very good to problematic. I'm sorry but that's not austerity. That looks like a lot of debt to me. Would the English population be much better off if it were instand of 2,700 billion 3,500 billion over 16 years or would that be austerity again?

[@economicshelp]

The irony of austerity is that if you kill growth, debt rises anyway.

[@hujiosnurgio2940]

@ In GDP terms it has doubled but in money terms it has more than tripled which cushioned the debt. So there was growth. It seems to me as if the problem is in the rich areas worldwide, only America seems to be a specialty at Grow. So maybe we are normal and America is more of an abnormality

[@christinemurray1444]

@@economicshelp you don't get out of debt by borrowing more and faster.

[@Fiercesoulking]

@@economicshelp For me the underlying fact is debt = more money . Debt needs to refinanced means more money needs to come in reason why this doesn't happens can be 2 reasons: 1. The money dries to quick up into channels this can be cause too low taxes(company) or tax evasion or just move out of the country 2. The potential to make more money, growth so to speak, is smaller then the money comes in basically stocks and other stuff can't pay the needed interest rate to set everything right(bit complicated ) means no money increase to pay debt and also no higher GDP. Reality is both of this happens only the mix and severity is in each country different .

[@Thedarkknight2244]

Any Wage price spiral should be temporary where supply infrastructure catches up with new demand.

[@benhall8152]

How did years of austerity lead to ever-growing government spend and a record peace time tax burden?

[@hshdudhshduduxubes1162]

we need austerity for the rich

[@mariuszkonieczny3393]

What do you mean by rich? Where does it begin and ends? You have to be careful here, otherwise you can cause exodus of wealth... My. Opinion, Taxation in UK should be more gradual. The 0/20/40/50 just doesn't work anymore.

[@lucaspio73]

Urgently indeed!

[@patrikfranzen4535]

Then you get even less reinvestment and slower growth. Rich people just move. I suspect you are referring to the upper middle classes that are not rich or mobile enough?

[@patrikfranzen4535]

@@mariuszkonieczny3393 This is exactly right in my opinion. You need to allow the upper middle class to start setting up business again. There is the engine of growth you need as well as the ''hope'' of the youth. Dragging everyone down to a lower level is the opposite of what is needed.

[@tictoc5443]

And why not people at the bottom of the ladder also setting up and growing businesses...rich peoples ancestors were also poor once​@@patrikfranzen4535

[@davewright9313]

Were heading for stagflation

[@JesterEric]

Markets not convinced by the change in definition. The bond vigilantes make further tax rises inevitable and a doom loop probable

[@cobbler40]

Any government is so indebted the room for manoeuvre is very small. The Tories chose culture wars instead of governing.

[@SamWilkinsonn]

Labour in name only.

[@jameshutton3960]

Have a look at their policies then instead of what the media highlights. Labour in action as well.

[@SamWilkinsonn]

Ha!

[@kevin-e5h5t]

The Australian Labor Government did the same, with its first Budget, then the second Budget created many benefits for free children's day care, schools, hospitals, and tax relief.

[@grahamkemp5102]

For all those who think you will be better served by reform, you need to read their policy document. They want an Australian pension system, this is a means tested system, they want more private healthcare and more tax cuts for the already wealthy, they want more cuts to public spending and cuts to public services.

[@mrmeldrew693]

They seem to be much more proactive and upfront about attacking people who aren't in their preferred client group. I wonder how many elderly will suffer in the cold tonight because of them.

[@jonkayl9416]

Growth is linked to "how you feel". if you feel things will get good then you will not hoard and will spend and invest.

[@stevec6232]

I'd summarise this as the uk economy is in a 10-year spiral, and nothing will materially help.

[@jontalbot1]

Very balanced view. I should say l broadly support what the government is doing. They have little room for maneuver but it is essential to boost investment- and public investment has to lead the way, especially in parts of the country where there is spare capacity and with help to transition from fossil fuels. I would like to see more investment in technical education, especially at the intermediate level. The problem is these are not really vote winners as the benefits are longer term and it’s unlikely the government will get the credit in any case. One bright spot: the recently published national accounts significantly downgraded the overall level of public debt.

[@HaydenCyclist]

Labour is cutting 5% spending from every single department. There is not one major investment planned for this country. Labour is taxing the poor to pay out the rich and wealthy. The Cons are bad but keir and his mob are just as useless economically speaking.

[@IshtarNike]

This is a false economy. This country is one of the richest in the world. We absolutely CAN afford to borrow and or deficit spend to get the country moving again. If these people had been in charge after WW2 we'd have no NHS, no council housing, no social safety net. We'd still be living in an Edwardian economy. This is the politics of the Gilded age. Normal people are being screwed over by these lies about there being "no money left". In a consumer capitalist economy the government is the spender of last resort. And these people are not spending. We are in a cycle of underinvestment. You can't break up the cycle by saving money!

[@ravindra7791]

The four biggest spends in Reeves budget were - NHS , Pensions, Benefits and Interest on debt. None of these are investments, health marginally maybe if it is spent wisely but they agreed for the increase without commitments to efficiency.

[@HaydenCyclist]

@ravindra7791 exactly. No investment. 1 trillion spend by reeves, less than 16 billion in investments which is almost all on transport.

[@ravindra7791]

@@HaydenCyclist My worry is they have agreed to spend for their union backers without any thought for the quality of the spend. If there was more diverted to infrastructure and education/innovation that would have been great as it would take things forward. The only way out is to reduce or improve spend on health , pensions and benefits.

[@davecambridgeuk]

Can you do something on the real impact of immigration? There has been a definite shift in taxation towards the 'wealthier' (who are not really wealthy as they just leave) but the majority of the immigrants are not in that category and they are not net tax contributors, but demand and receive all the same services. This surely has an effect? I am not arguing for or against immigration, but it seems that this effect over the last 10 years must contribute to all the evils you have identified.

[@Moorzo83]

nice jumper

[@davidhyoung2020]

Long standing small businesses in my local area are disappearing at a faster pace than ever before, Reeves is destroying the private sector, only jobs left will be in the public sector until the tax revenue dries up to pay for them.

[@gerhard7323]

A lot if this is just f*cking about with debt numbers, how and where they appear on balance sheets, be it public or private, and how this then plays with 'the money markets'. For example, the UK Central Government chooses to shift much of its potential debt burden onto local councils and make legal requirements for the services they, not the central government, must provide. The Chinese government do much the same with their regional governments incidentally. So much 'accountancy' smoke and mirrors afoot I'm afraid.

[@manvbees]

People need to realise austerity is necessary. Whatever you want to call it

[@CristianoRonaldo-mk7dd]

Can’t believe no one talks about the dragging of the personal tax allowance since 2019 and to last until 2028?!??? This is taking thousands of pounds a year to everyone who works

[@ArronCharman]

Cutting state spending is not a mistake, it is necessary

David Starkey's new video 'Why Labour's Economic Plans are Doomed' - goes through Labour's economic policies, and exactly where they came from. Not good news.

[@mongoliandude]

Wait, isn't this the guy that claimed the London Riots of 2011 happened because "The whites have become black"? 😆

[@inbb510]

You can't avoid austerity. Not in an aging population with low fertility rates anyways. In this scenario, public investment by definition doesn't pay off in the long term.

[@SergioBlackDolphin]

Make it a better place with better quality of life that goes beyond numbers, and the numbers will follow. It has become a terrible place where to have your family and grow your children. This government has a huge majority and should use it for radical change, or someone else with unscrupulous intentions and policies will do.

[@SJ44-tu8ow]

Does austerity include 25% pay rises for non productive state workers?

[@earnestequivocation6250]

Non productive life saving doctors and nurses for example?

[@IshtarNike]

If you think state workers are non productive you should move to Argentina and see how it's going there....

[@saasda6255]

People like you are so confusing you want a better NHS with better workers who work for peanuts ?

[@SJ44-tu8ow]

​@earnestequivocation6250 In order to fund these pay rises the government has to either stimulate the economy or borrow the money and add to the 3 trillion of debt our grandchildren will have to pay off. Labour chose option 2.

[@harrisonbergeron9746]

of which a very high proportion goes into the local economy rather than being siphoned off into tax dodges

[@Paul-eb4jp]

It's massively different, we're now taxing the rich land owners and investing in the NHS, we're paying for breakfast clubs for kids rather than handouts to rich pensioners.

[@m0o0n0i0r]

The market seems to be loking through the government fiddling as per the 10 year gilt rate.

[@tonycollyweston6182]

No it's due to quantitative tightening, the banks are lending less.

[@m0o0n0i0r]

@@tonycollyweston6182 the government via the treasury will need to cover the losses of the BOE bond sales via the treasury. Thats why the banks are lending less. basically they know the UK is overindebted after QE and ZIRP.

[@tonycollyweston6182]

@m0o0n0i0r compared to what other major economy?

[@m0o0n0i0r]

@@tonycollyweston6182 compared to the fact that the uk has stagnant productivity since 08 despite currency devaluation. basically the private sector is not investing in the uk all you now have is government tax and spend idiology.

[@tonycollyweston6182]

@m0o0n0i0r since the the Wilson years the has been inadequate public investment in infrastructure and this is the result. The money from North sea oil was wasted on consumption to keep political parties in power

[@jamesgeorge8915]

Labour seem to be doing a great job - said no-one in the UK in 2024 (fact).

[@SergioBlackDolphin]

Make it a better place with better quality of life that goes beyond numbers, and the numbers will follow. It has become a terrible place where to have your family and grow your children.

[@Talus-hallux1]

Argentinean economy, which had the worst hyperinflation in the world, for a long time, has been turned around by their leader Melei, in a very short time. While the UK economy while not hyperinflated yet, has no money to spend on services (or on anything), while tax, utilities and cost of living is at record high! While corruption is overt in other countries, UK has a covert one

[@willyhill7509]

No, they both work to WEF directives.

[@GonzoTehGreat]

Answer: Yes, their economic policy is somewhat different, but not by nearly enough!

[@briankerrison8504]

They have taxed the higher wealth demographics in our nation.. 🙄🤔

[@Alex-df4lt]

The UK cannot outgrow its debt this time. You shouldn't have voted for Brexit.

[@north584]

What’s brexit got to do with government debt? - no growth because we don’t make or sell anything the world wants!

[@gerhard7323]

What an utterly ill-informed comment. Take a look at what's happening in the EU, particularly to its major players, for crying out loud.

[@Alex-df4lt]

@@gerhard7323 Do you have anything more specific than that?

[@gerhard7323]

@@Alex-df4lt Do you seriously want me to do it for you? Look at what's happening to the politics in France and Germany. Look at the political shifts there and elsewhere in Europe. Look at the levels of debt to gdp of some these countries. Greece's economy today, despite the austerity miracle narrative being attached to it, remains smaller than in 2008. None SO blind as those who WON'T see 🙈

[@Alex-df4lt]

@@gerhard7323 How is it related to my original claim? Looks like you are just going off a tangent.

[@dbee8085]

Conservative austerity or Labour austerity you can have too much choice.

[@ga21351]

UK economy is unbalanced since 1973. Constant trade deficit due to BoE policy same to FED. This debt driven economy may come to its end.

[@Thedarkknight2244]

There needs to be tax brackets for companies of different sizes. We already have this with the apprenticeship levy

[@OptimisticHominid]

Joining the EU (again) will help the UK recover from the damage of Brexit.

[@davidhobbs5679]

"Austerity" do people even realize that the UKs government spending had never gone down....there hasnt actually been any austerity, just a reduction in the increase in spending. The UKs government is just shockingly bloated and in effecient.

[@londondisc]

A lot of what you say is undermined by the fact that Real inflation is thrice that of official figures. The big ticket items Insurance, car travel costs, taxes, local rates are all increasing at around 7 to 10 percent. The government xan easily set up an App for individuals to input estimate costs to see what their real inflation works out

[@paulking2039]

Labour are still continuing with pension tax relief for 2nd pensions, costing 55bn a year. Hammond said it was too much then did nothing when Chancellor. Introduced by New Labour in 2006, so far costing well over 1/2Trillion, more than 1/2Trillion again over the next 10 years as the tax relief rises each year due to more claiming. 55bn is enough to build 40 new hospitals every 2 years, with change to fill some pot holes. Why are higher 2nd pensions for the middle and rich, more important than the UK as a whole and the UK economy, which is tanking due to austerity and lack of investment. If we were chancellor, the tax break would be long gone, using the saved money to end austerity and invest. How many more of these massive tax breaks are there ? Labour will never win an election again if they carry on with austerity and duping the public into believing there's no money.

[@wokelefty]

You can also pay into a junior sipp for your children under 18 & claim tax relief on that too.

[@rossgardiner2197]

Land tax.

[@unexpectedly1468]

Great video. Sobering. I feel that universal income is needed to get money moving through the economy, get people spending and boost businesses.

[@garyb455]

There has never been any austerity, in 1997 when Labour came to power Government spending was 35%, today its 45% that's why the Country is in trouble, spending is out of control. The UK and the EU have had Left Wing Policies ever since 1997 which is the reason the average European and British person is now 40% poorer that the average American. If the UK was a US State it would be poorer than Mississippi which is the poorest State.

[@malthusXIII-fo3ep]

Kemi's right....essential to return to low tax, small state.

[@nathanahubbard1975]

Based on the comments and from what I hear from typical Brits, they are never going to solve this. They all want more taxes and more government spending. That's not how you grow your economy, that's how you stifle it.

[@LadyInsipidity]

See how small state has catapulted the majority into impoverishment viz. food insecurity, healthcare insecurity, and educational apathy in the post Reagan USA, Argentina, even India for that matter, which is seeing the end of its neoliberal boom due to underconsumption arising from declining consumption due to increasing private debt. The lack of growth of wages leads to overproduction and a necessary scaling back due to shortage of aggregate demand, which will cause unemployment to soar. The Clinton administration had to change how unemployment was reckoned to mask the severity of its growth in the “small government,” regime. Public spending will cause profitability to fall, however. Hence capitalism is doomed no matter whether Keynesianism or austerity are adopted 😂

[@rheung3]

Nvm Conservatives or Labour, seems a deeper problem in places such as USA, Britain, Canada, … : ref. economist Henry George. Just 2 min. with Peter Thiel to understand “Georgist real estate catastrophe” (in USA, Britain, Canada, … ) kzbin.info/www/bejne/oKS7f4aKZ7V2bJY

[@lipsee100]

Ok ,so these smiling Johnnys knew along that we here going down the pan ,,,they must be multi millionaires

[@trydowave]

Sounds like a scam to me

[@TejashPatel-z2r]

Wages do contribute to inflation because money is tied to pretend values. We need to ditch the dollar and reinstate gold as the central reserve. If Thatcher (and successive governments) never sold the old system and kept our pound in line with gold and not the dollar we would have 0% inflation. Also we need to stop saying that deflation is bad. The idea that allowing affordable chinese (and other affordable foreign made goods) goods to be sold in the UK would be bad for the economy is just ludicrous.

[@MouseionAlexandria]

deflation almost always leads to a drop in consumption and investment. If you could afford a 10% bigger home if you wait a couple of years, why wouldn’t you? targeting 2% inflation is prudent. The reason for the fall in SoL is explained solely by the expensive housing costs, which can only be offset by build, build and building a lot more housing (while gutting unnecessary zoning laws that encourage suburbia, instead of dense urban housing)

[@sky37blue]

The inflation is no accident.

[@TejashPatel-z2r]

@sky37blue i agree to begin with i very much believe it was deliberate, however it's also now inevitable (and uncontrollable) because America keep creating more money from nothing. Hyperinflation is going to come simply because the Americans don't want to give up any economic power and Western nations are too scared to use another currency as the reserve. As i said, we need to shift away and base our money against a physical asset (ie, gold) and not against the dollar. This is Zimbabwe on a global scale.

[@edwardmiller3859]

Let millions in who contribute nothing and this is what you get

[@sOnIcBo0mBoY]

Care to back that up with some figures?

[@TracyCarr-rx4fw]

Labour is.the Torries dressed up

[@christinemurray1444]

There was never any semblance of real austerity. Austerity just means living within your means, something that hasn't happened for the public sector in decades. The public sector and the benefit system are GARGANTUAN and growing, no amount of milking the already impoverished taxpayer is going to fix that. Making the rich flee to Cyprus, Malta, Dubai etc will not help either. Real austerity is required, and this is best done by cutting costs. If you want to see a real austerity plan check out Milei's Argentina.

[@malthusXIII-fo3ep]

Best comment in ages. We last enjoyed budget surpluses back in 1997....Brown got the benefits of that excellent Tory legacy. Then it all turned to shit with colossal welfare and state expansion. Brown was a disaster.

[@malthusXIII-fo3ep]

Milei overturning a century of socialism/Peronism...big state welfare spending funded by money printing, then 2,000% inflation, then IMF bail-outs followed by defaults. Milei is transforming Argentina with Thatcherism.

[@BillDavies-ej6ye]

No mention of the gargantuan amounts siphoned off for unusable PPE, test and trace, and other scams. But that different, it fits into pockets.

[@papadajnia268]

uk is going down toilet

[@Music5362]

The more self reliant people can be, the less government they'll need, leading to lower taxes, lower inflation, lower debt interest payments, becomes a positive cycle. Also, lower taxes will attract high human capital migration, leading to even more taxable wealth, again reducing overall tax rates. More government leads to the opposite of the above.

[@stephenthomas3085]

Sounds like huge opportunities for outsourcing companies to me...! More public services being hived off with the promises (or lies) of more investment, more choice and lower prices and lower taxes. I think we have seen - and are seeing - what a disaster this has been. What you are suggesting will just lead to a dog eat dog, angry society where systematic deregulation undermines our quality of life on every single level and ever greater inequality as the rich get richer. ''Also, lower taxes will attract high human capital migration, leading to even more taxable wealth'' 'Trickle down economics failed, it has been comprehensively discredited.

[@malthusXIII-fo3ep]

Essential to dis-incentivise the welfare disgrace. Beveridge intended a safety net.....NOT A SHIRKER'S WAY OF LIFE.

[@vladlazar94]

That’s what Maggie and Ronald thought as well. It lead to the over leverage of the private sector. Not unexpectedly, the free market is not different from government in that it fosters the same accumulation of power in the hands of few. For more context on why that is, check the links between deregulation, runaway private debt, and financial crises over the past century.

[@vladlazar94]

Another point about small government and inflation. Government spending is not the main source of inflation. Private lending is. Ironically the Small Government cannot do much to curb the banks’ tendency to over lend, as this credit money finances the services that the government no longer provides.

[@Music5362]

@@vladlazar94 All very true of course. All the BoE can do is increase the reserve requirement / increase interest rates.

[@JacksonFairweather]

TLDR: The communist commentator concludes increased taxes and increased spending will lead you to growth. 😂 You couldn’t make this up

[@brianbarcroft9167]

Well...errr.....Liz Truss!

[@riverraven7359]

This country hasn't had austerity. They tinkered around the edges but deficits and debt continued to increase. The brutal cuts needed to right the ship are too much for any politician who wants a long career to stomach.

[@heinkle1]

Economic oblivion incoming

[@gavinspiby8304]

It’ll be far worse than austerity Far worse Net Zero will ruin us

[@mongoliandude]

Why would net zero ruin us? It presents an opportunity for us to reestablish Britain's industrial base, to diversify away from an economy that's over-reliant services, to serve as a potential engine for growth, and crucially could reduce energy costs that are (A) currently contributing to the cost of living crisis for people and businesses and (B) subject to global shocks (e.g. war in Ukraine, COVID, US tarifs etc).

[@eddieharris6004]

I dont object to paying more tax, but it has to be spent wisely. There have been too many wastefull past vanity projects, HS2 rail, Queen Elizabeth aircraft carrier, stupid 10 minute cities, probably worst of all the obsession with net zero.

[@James-tv4pl]

HS2 was completely a vanity project, but I think we needed the Queen Elizabeth aircraft carrier, and in terms of Net Zero, pushing domestic renewable energy is definitely wise but pushing EVs was a vanity thing

[@Zenkrypt]

Well, renewable energy is cheaper.

[@CupOfSweetTea]

Yes, net zero is so expensive. Who cares if it saves the world.

[@malthusXIII-fo3ep]

Another of Brown's unfunded, uncosted spending plans. Another of his PFI debt monstrosities.

[@wokelefty]

​@@Zenkryptrenewable energy price is linked to gas price. It's cheaper for the wholesaler, but not for the customer. The customer pays the green levy to build more renewables though.

[@jameslockwood1958]

Most of that was incoherent rambling

[@simonfunwithtrains1572]

Most of what?

[@earnestequivocation6250]

Are you Liz Truss?