Labour’s plans for private sector growth could just as easily deliver a recession

[@luigijohson6732]

All these issues stem from an economy grappling with uncertainties, including housing problems, foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.

[@AndrewRedford]

In retirement, safeguarding your wealth against inflation is essential. Consider options like TIPS (Treasury Inflation-Protected Securities), commodities, or foreign currencies to hedge against a weakening dollar. Diversifying your portfolio with global real estate, international bonds, or high-quality foreign stocks can provide additional protection and growth opportunities in an inflationary environment.

[@creissantrocheleau946]

With my demanding job, I lack time for investment analysis. For seven years, a fiduciary has managed my portfolio, adapting to market conditions, enabling successful navigation and informed decisions. Consider a similar approach.

[@curitira2980]

This sounds promising! Do you have any professionals or advisors you could recommend? I really need help with proper portfolio allocation.

[@creissantrocheleau946]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Jennafer Beaver Turner for about five years now, and her performance has been consistently impressive. She's quite known in her field, look-her up.

[@curitira2980]

I just copied and pasted Jennafer’s whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.

[@philjameson292]

Look at what private equity has done to Morrisons supermarket A family run company that was competitive and owned its land etc Its been asset stripped and its prices have risen considerably

[@BoyeeSmudger]

Friend of mine is a (small) dairy farmer, he's stopped dealing with them as they were bullies, in fact all the big ones are bad. Aldi and lidl treat him and his cows better.

[@Sha-Ayo]

​@@BoyeeSmudger interesting 🤔

[@edwardlyons6965]

Rachel Reeves announced her Economic advisors some time ago. They are all Asset Managers from the Banking sector. Instead, she should be consulting Mr Murphy & Ms Marianna Mazzucato.

[@allegory6393]

@edwardlyons6965 But Reeves was put there in order to let asset managers run the show. Had she been someone who would be consulting Mr Murphy and Ms Mazzucato, she would have been run out of the 'Labour' Party ( currently the anti-Labour Party) as soon as the tool maker's son was installed leader.

[@michaelel650]

Yes, and Grace Blakeley and Prof. Peter Slobodian. All the best.

[@thomasswift3563]

and Yanis Varoufakis

[@indricotherium4802]

As I repeatedly observed from well before the election, there was always scant evidence that Starmer's Labour knew the "how" of doing anything that its fluffed up, vaguely worded mission statements promised. This doesn't make me a Conservative, it just leaves me with no faith in the entire mainstream Westminster political class.

[@allegory6393]

And that includes the clowns of Deform. Just as one thought the political staff could not get worse, more corrupt and incompetent, along comes Fartage!

[@timothyrussell4445]

Define "mainstream Westminster political class"

[@indricotherium4802]

@@timothyrussell4445 :As a working reference, Labour, Tories, Lib-Dems (HoC & HoL).

[@allegory6393]

@@timothyrussell4445 It is rather self-explanatory, but here you have it: it is none other than the professional political class whose sole aim is its own reproduction (whether in government or in opposition). To ensure said reproduction, this class relies on the donor and corporate (banking, City, private equity, etc.) class, hence the interests this professional political class represent are those of the financial elites du jour (each of the factions of the professional political class representing a different faction within such elites). Currently in the US, we have the conflict between the old banking/Wall Street elites and the new rogue tech-billionaire elites being played out in plain sight through their respective political platforms.

[@Sha-Ayo]

​@@timothyrussell4445 neoliberals

[@nickbarton3191]

From my personal perspective of 40+ years of work, there seems to have been cycles of boom and bust every 7-10 years, I've been made redundant twice. What's predominantly driven my wages up is inflation, and changing jobs. Not for years has there been stable career jobs with one or two companies like my father enjoyed. But now we are looking at steady decline, and I see no way out of it.

[@scottyfive4319]

Yep been my experience as well. I have watched as the UK has been driven down by decisions made in Westminster. According to much research the UK now has some of the poorest citizens in Europe and the numbers are growing month on month, rickets, scurvy and malnutrition on the rise. Essentially 20% of the UK population are barely active in the economy and that is a huge problem for the government as it hugely reduces tax revenue, one of the reasons UK debt is now North of £3 Trillion, that and giving huge tax breaks to the rich and big business.

[@charliemoore2551]

Agreed but the point is that there are people who can see ways out of it. It's just that they're not listened to.

[@scottyfive4319]

@@charliemoore2551 Most if not all politicians are in politics to make money, end of Story.

[@nickbarton3191]

@scottyfive4319 Actually, the debt was revised down by 1.5 trillion recently. Richard has a video about it, thanks to high interest rates the future liabilities are lower. It'll go back up if interest rates ever get lowered, just financial games.

[@nickbarton3191]

@@charliemoore2551 From what I can see, Labour are continuing with same failed Tory policies.

[@roddychristodoulou9111]

Short answer is no , the private sector can only grow the economy marginally . If Starmer wants real growth and national renewal as he has said on many occasions he needs to spend big using government money . If we look at modern history as an example of this we should look at America . At the beginning of the 1930 after the depression in America the president at the time ordered the biggest spending package on social and infrastructure projects in American history . In the coming years this policy turned out to be a resounding success and by the late thirties America was booming . There's every reason to beleive if this was repeated today we would have the same results , but alas this takes courage and wisdom which Starmer and Labour lack .

[@imbonkers3629]

We are already paying £102 billion a year on interest alone on our debt , you want government to spend big like hs2 🚅 lol we are over $4 trillion dollars in debt all debt is in dollars, government should get out of the way and let the private sector loose not put endless red tape on them

[@stephendavis5530]

Quickest way to growth? Put money into the hands of the working class who will go out and spend into the economy on goods and services. Give workers a massive pay rise.

[@colinc8966]

​@@stephendavis5530Not just the working class but the lower middle classes (white collar workers), workers that have seen little or no wage rises for years.

[@johanna2245]

I'm always told that the USA joining WOII has really lifted the depression in the USA. But in my country we have a basic economic policy that all governments follow: spend as the economy is bad and save when times are good. The goverments can choose how they materialize that. After 60 years it still works. We financially survived Covid better than other European countries. But we will see what population decline in the coming years does to that.

[@inguzwulf]

​@@stephendavis5530 This was mooted following the 2008 debacle, instead they gave it to the wealthy and just look what's happened since. Those 'in charge' do not see the general public as anything other than serfs and peasants: they will continue to follow perverse ideology until it all collapses then blame the general public - especially those who have dropped hours (thus started to pay less tax) because they want more time for themselves, etc. Sadly, the wealthy with 'power' (or access to power) won't listen to anything that might take even a penny off their 'earnings', and that is the most perverse of all.

[@Brian_Equator]

Sadly I don't think Labour is going to generate growth of any type. Tax and spend right into recession. Sigh! Nothing changes with them. Brian.

[@joea4234]

You are more qualified to discuss the economy than this current chancellor or prime minister. Concise & relevant. Thank you

[@1292liam]

he should join them/ but he makes more money from ads, carping from the sidelines (YT)

[@andielines]

@@1292liam Dick.

[@nickryder9669]

That may be true however they have the best pair ever in charge of our economy guiding them ! That’s Blair & Brown ! Their record is unbroken 43 consecutive quarters of economic growth the bankers crash then consecutive growth untill the Tories took over Look it up

[@Ganyersel]

No, he's not more qualified, he is a 'professor of accounting practice' who just happens to like to wax lyrical about his narrow view of economics on KZbin. Much in the same way as the quality of Ted Talks nose dived when lunatic fringe speakers were allowed, here we have someone similar who is 3/5 on delivery, 5/5 on self belief, but 1/5 on realism and practicality. As for this particular YT 'mind dump', the thought of Richard Murphy or the government somehow being gatekeepers and judging the virtue of who can and cant be part of economic growth is utter nonsense.

[@willyhill7509]

@@Ganyersel Yep, an accountant who is no more quaified than a bus driver.

[@MargaretDeakin-d6m]

What happened to that raved about green deal, that was going to provide thousands of good jobs? And why has green energy been put in the hands of the same profiteering corporations? A massive lost opportunity to take control of our energy for the future, wasted, just to serve short term finnancial savings. All this short-term pragmatic giving away of our assets to private predators will continue to cause misery for future generations. Sell off, sell outs, and we the people pay the price.

[@stephenhookings1985]

We sort of outsourced it to China - but China misrepresents its green credentials.

[@crayontom9687]

Don’t worry Richard, Black Rock have got our best interests at heart 🤥

[@anjux3673]

@@crayontom9687 BlackRock is an investment firm and as such only owns around 6% of its assets. The rest it holds for other institutional and retail investors. It’s likely that, if you have a company pension or any investments, that you also hold a slice of BlackRock.

[@stephenjenkins1323]

I’m a bit thick Richard. Please explain how growing the government will not put us in a worse position. I dont get it

[@swojnowski453]

It will not for a simple reason. Essentials must not be put in the same bag as other activities. We must not have everything run for profit purpose only. For that we need a larger government. You have a choice, private hospitals and nurses or public basics. The choice is yours, but it is very limited when you can't pay. See the US for examples of this.

[@rikdeek]

It doesn't necessarily require bigger government, to have more of the economy made up of businesses that are doing a better job for people and planet. It does require government to help and promote more businesses that are charities, non-profits, cooperatives, B-corps, social enterprises, etc. But for those kinds of businesses to do well, people need to understand which ones to work at / shop at / invest in, and which to avoid.

[@stephenjenkins1323]

⁠@@swojnowski453ok I agree with premise not everything should be run for profit but that doesn’t answer the question - larger government needs larger amounts of money - we are already taxed to oblivion and we keep introducing more and more anti competitive policies destroying businesses. The left seem to think government employees are just wonderful and cannot be corrupted or have nepotism etc and just increasing the granny state is the answer to everything. As I say - maybe I’m just thick but I don’t get it and clearly with the government gilt prices neither do the markets which MMT proponents like Richard fail to explain away - I’m pretty sure Argentina went bust so governments can and do go bust so again - why is the answer always grow the state?

[@Shepherdoak]

Political democracy is impotent without Economic democracy, Oligarchy prevails

[@ZsoltSipos]

here for the learning, thank you!

[@ryantennyson7562]

How about some good old fashioned Keynesian government spending on infrastructure creating jobs?

[@asumazilla]

Like upgrading railways? Or something bigger?

[@ryantennyson7562]

@@asumazilla Yes and repairing roads, schools, hospitals, water systems, more buses, homes etc...

[@MargaretDeakin-d6m]

Just for a start, government investment as proposed, in green energy. Yes, our grid needs updating, but our grid should not be owned by privateers Green deal, thousands of jobs, and, green energy owned by us. Yes, Nationalised energy. Just one thing Labour could have implemented, that would have given future generations energy security and lower costs

[@asumazilla]

@@MargaretDeakin-d6m Why only green energy, there is coal, gas and oil which could also provide cheaper power. This could be used for example in the manufacture of materials for renewables which have large energy input to manufacture.

[@inguzwulf]

Like subsidising small to medium sized enterprises more and larger, already wealthy enterprises less. Like encouraging real-terms pay growth so that those same wage earners don't have to subsidise wealthy employers (eg: work credit schemes to 'top-up' the wages of those on the lowest incomes just so they can work. I mean: why? Work should provide enough income to pay your own way - no wonder people are reducing their hours and their 'productivity' is low).

[@leejohnson3209]

They want growth but do nothing to stop energy companies ripping us off. My energy bills are so ridiculous now I can't treat myself to that new hiking gear I wanted. Or that new suite for the lounge. Or some nice pictures to hang on the wall. Or that special meal out with friends. I won't be the only one.

[@stephenhookings1985]

Even if you can afford to treat yourself - how much of that expenditure remains in the UK and gets distributed more evenly across the population? Not knocking you - genuine question on where benefits of growth go.

[@leejohnson3209]

@@stephenhookings1985 its something to consider, but rather a moot point if people don't have any disposable income. I'm not a capitalist, or a particularly high consumer. I think capitalism is flawed. But it bemuses me how our government who think capitalism is the be all and end all don't seem to know how to make it work.

[@jamesg5426]

A big chunk of your bill comes from subsidies for green tech. We have also got to buy alot of our energy from France and Norway at a premium. We should have done like the French and invested in nuclear years ago.

[@blackbulldog4897]

@@stephenhookings1985 £s can never leave the Sterling area. The name tags on them may change but they can never leave unless they are taxed out of existence. As for how they are eventually distributed, well, we all know the answer to that, don't we.

[@blackbearish]

@@jamesg5426 and a lot of the bill is from the debts taken on by the bigger energy companies owed by consumers to the smaller after the thatcherite privatisation failed.

[@sohu86x]

If a layperson like me knows of the foolishness of private equity, how does a person like Starmer (with his advisors) does not know this? Is he a fool?

[@BandOfHarjaps]

It's that least worst option problem. He is stuck with keeping the oligarchs sweet or they will bring about Starmer's downfall and replace him with someone more to their liking.

[@andrewbrazier9664]

Currently it appears to be that private sector companies providing services FOR the public sector stand to benefit from the shift in taxation.

[@kevin-e5h5t]

Neo-Liberal Capitalism relies on Markets - but growth relies on Consumerism. Those 2 are completely different things. To the average consumer, they do not have a "geographic choice". Therein we have "Geographic Monopolies" for, supermarkets for food, and water, gas, electricity, schools, hospitals and clinics 'phone, cell 'phone, cable, internet and a dozen other local monopolies. Only Anti-Trust Law can stop this.

[@nickthurn6449]

Not necessarily - you just need one area of the economy booming and magically GDP starts to look peachy... this is exactly what Biden orchestrated - of course regular working people felt zero change and some went backwards (eg software developers after all the "moonshot" projects funded by QE were shuttered).

[@physiocrat7143]

All the things on your list are rent seekers. Rents need to be heavily taxed. Labour, goods and services need to be de-taxed. More regulations are not the answer.

[@cd78]

We only need one more month of negative growth and we are officially in a recession. We have had 2 months of negative growth so far and I bet Christmas was bleak

[@nicholaspostlethwaite9554]

Yes but these recession/growth things never make any real difference to people. Just words used by media. No one notices 'growth' either. Certainly not in the tiny amount either way we get. Scaremongering bogie man words.

[@jimcraig6523]

These points raised are all indicator's of the failure of capitalism and at its root is the central banking system. Banks are no longer, if they ever were, financial intermediaries based on fractional reserve theory. Banks do not require prior savings central bank reserves or any other deposits for that matter to lend money. They create new money by "bank lending" that is added to the money supply which is not a transfer of existing purchasing power but new net purchasing power. This is money manufactured out of thin air. In this way banks create 97% of the money supply and their decisions on how that money is lent, to whom and for what purpose shapes the economy. There is no requirement to lend for productive environmental projects that actually create jobs, benefit society and the "real" economy. Consequently 66.6% of lending is not for productive purposes but for asset acquisition which causes bubbles overvaluation, inflation of asset prices and spurious paper "profits" leading to market corrections /crashes on regular basis that leads economic damage that can take decades to recover from.

[@stephendavis5530]

My main worries are the deal this government has done with the private sector in order to clear waiting lists and what has been promised to those who are promising to invest in this country, particularly Black Rock! Streeting has apparently done a deal with private medical firms, using their "spare capacity"....which doesn't really exist as most private medical firms use NHS facilities anyway. Also, these private investors are not providing these funds out of the goodness of their hearts, They want something in return. What have they been promised? A clue might be Starmer's recent call for the public sector to find ways that they can "deregulate", in other words, drive down standards so businesses can make more money. What could possibly go wrong?

[@inguzwulf]

Brother, you've just hit the nail on the head: keep expressing this kind of thinking to all and sundry (hopefully enough people will start hearing what you're actually saying and stop voting for bad actors🤞).

[@jamesgeorge8915]

Very profound explanation of western economics, that you sir.

[@graemeshort1928]

A great display of critical thinking on a subject you have mastered Thank you still loving these early morning lessons keep them coming!

[@jilladams3807]

❤

[@findlay234]

I'm not sure they are going after private sector growth. They SAY they are, but almost every action they've taken will do the opposite of grow the private sector. Grow the public sector sure. I honestly don't think they know how an economy works. By people and businesses willingly trading (buying and selling) with each other. Thats all an economy is, the summed transactions of the people in it. Good economies where all people take part and benefit from the growth in productivity and bad ones like you describe where the some get everything and others get nothing. I agree with you that the over financialisation of our economies is bad. The idea that the wealthiest people are hedge fund managers rather than business founders/managers/employees is crazy. I am a big fan of Milton friedman but his shareholder capitalism idea was wrong. I don't view stakeholder capitalism positively either on the otherhand. I prefer Druckers more 'customer capitalism' ideas.

[@stanguy4491]

The value of shares can go up as well as down. This is why I won't invest in shares. Look at the States. United Healthcare responsible for quadrupling their medicines 💊 and having CEOs denying most people Healthcare. If you don't want the UK NHS going the same way as US Healthcare dictated by Insurance Companies, demand our Labour and Conservative politicians give back their donations to private medical companies. Nothing less will save our NHS. The fact that Health Unions fo not support full renationalisation of our NHS needs to be outlined fully. Also support a price increase cap on medicines and operating technology so they are accessible for our NHS to purchase, in the first place. There are no campaigns running, that demand we make it a sackable and criminal offence for politicians accepting crony donorism donations and corporate lobbying a criminal and sackable offence. Let's start these campaigns, otherwise unqualified politicians from Tory and Labour Parties both have the capacity to destroy our NHS and natural utilities and post offices, unchecked. OFWAT and Utilities watchdogs are a waste of space because they are chaired by Tory donors. No use or ornament.

[@danielcollinson4456]

How can i avoid to buy anything other than essentials when my energy bill is almost trebel what it was a few years ago!

[@TimAbbott-b4b]

Thanks to net zero 😂

[@rohanharridge5579]

​@TimAbbott-b4b How TF does that work when renewable energy is cheaper to produce & the price of energy in the UK is determined by the marginal cost of natural gas?

[@danielcollinson4456]

@@TimAbbott-b4b its the cost of gas you muppet!

[@alexjeffrey3981]

​@@TimAbbott-b4bthanks to energy company profiteering

[@thecivilengineeringdj657]

I would gladly want yourself in the Chancellor's job because you are experienced, concise and can formulate long term plans for the future. We need you NOW and not Czarmer's nodding dogs.

[@TheRohanstorey]

I've been working in the building trade for 41 years and for the last year it feels like we're in recession there was a brief glimer of hope when interest rates dropped slightly but once labours policies kicked in it's got worse, If houses don't sell they won't get built. They're breaking us financially

[@philipoakley5498]

The private sector has private failures, the public sector is for public failures. Humans run both.

[@getreal7964]

The biggest issue is Inequality.

[@iian050]

I read this a lot, are there any sources I can understand why that you'd recommend?

[@martinwatson9615]

@@iian050gary Stephenson kzbin.info/www/bejne/o2bcl5WNrq2Dl8Usi=QfuSxZLvlPY3i4uA

[@michaelel650]

@@iian050 'Crack-Up Capitalism' by Slobodian, 'Inequalities in Health' an old book combining 'The Black Report' with 'The Health Divide' showing the disastrous effects of inequality on health. 'Vulture Capitalism', 'The Spirit Level' one of the best books re: the wider health effects of inequality. As to where the inequalities of wealth and power are heading read 'The Sovereign Individual' by Rees-Mogg and Davidson who celebrate the approaching destruction of the Western Democracies by the rich and the rise of a new feudalism! Anything by Profs Marmot and Layard link to this, see also 'The Selfish Capitalist' by Oliver James re: mental health. As for where we are see 'The Invisible Doctrine' and 'The Silent Coup'' Equality begets fraternity and fraternity begets real freedom with compassion, which is the only freedom worth having in wider social terms. All the best.

[@physiocrat7143]

​@@iian050 Progress and Poverty, published 1879. There is little more to be said.

[@nicholaspostlethwaite9554]

Diversity of wealth is a great and good thing. Natural and eternal. Essential to human life or we are drones, ants, pointless, existing for the sake of it.

[@glynnwright1699]

One thing is for certain, it is not the function of accountants to quantify social benefit. Indeed it is accounting companies that promote some of the most ethically questionable innovations, such as the use of AI in the employee recruitment process.

[@beatskool101]

Also as we age we get pickier as to what we really need to buy, only the kids buy more useless things and the birth rate is falling so the pool of suckers is shrinking.

[@willyhill7509]

Their strategy is to reduce private sector growth by increasing taxes and reducing the money available for investment.

[@Elspm]

This isn't the fundamental point of the video, but I can't help but comment on it. People now say AI to apparently mean any form of machine learning and automation. Its meaning is murky, and so big companies can use the term to sell almost anything with the promise of mythical AI to come down the road.

[@1599maybole]

I went to an interview with a company who claimed to do AI and really it was just document templates 😂

[@SimonSlade-xw5kr]

I don’t remember much from my sales training 45 years ago but one acronym has stuck. MAN: Money, Authority, Need. No money = can’t buy. No authority = can’t buy. No need = won’t buy. A potential customer/consumer must have all three. Yes need can be circumvented by clever advertising, marketing and sharp sales practices but will only result in buyer remorse and consequently loss of future business but, no matter whether B to B or B to C, no money no sale

[@robertpainter9820]

I regularly tell family, friends and colleagues about this channel. For me this is the best, clearest and most insightful commentary on UK economics and politics at the moment. The format is perfect. I make a point of watching every morning. Thanks so much.

[@roykirby5494]

A significant proportion of the private sector rely on government contracts or spending for a large part of their turnover.

[@Obez45]

You can see that people are already letting AI think for them - in that recent Labour AI video having animals doing human things to make a political point was a stupid concept but it was chosen because AI is ok at making those kind of videos - limiting the scope of creativity. These people didn't even give an intellectual thought to the music track as well - composing for film is a complex artistic endeavour but because it's cheaper and easier to use AI let's not think, let AI choose. They are already using the excuse that “AI did it! It's not our fault!” which is scary coming from a government body.

[@johnners911]

Is that the video that apparently had lyrics including, "... drug bad girls..." ?

[@NetZeroNo]

Vince Cable sold RM and look what we have now! And though the PO remains nationalised (via an ALB) Futjutsu made plenty of profit!

[@fortune-cookie-monster]

Another essential video! Thank you so much. Everyone should subscribe to your channel and watch this video. A HUGE THUMBS UP from me!

[@MikeStephens-re6ug]

Did you put those subtitles on? I couldn't get rid of them. Put me off.

[@cinnamondonkey2397]

The system needs people to keep spending their money. This is why people are penalised for holding cash savings.

[@12theotherandrew]

Don’t hold cash, hold “assets”. These (things/property) increase in value.

[@inguzwulf]

​@@12theotherandrew Not so easy to convert an asset into cash when you need a new washing machine, though. Holding assets is fine when you earn above a certain income level (especially for most hand to mouth wage earners with children) but unfortunately this isn't the reality of a majority of the population.

[@physiocrat7143]

Rents, interest payments and property prices gobble up most of the extra wealth created by growth. Cui bono? That is not all. What do we want grow into? Why do we need to grow? What happens to the growing pile of rubbish?

[@Scientist538]

And what are the solutions?

[@OneAndOnlyMe]

Who said it had to be done in 2025? It needs to grow, but in this Parliament.

[@dgraham-l1c]

😂😂😂😂

[@norman7527]

No chance. Just like they haven't done over the past 40 years. Remember were 'Private Equity' Britain

[@mbak7801]

My income is hardly going up, tax is though. I am cutting right back on spending and putting surplus into tax free investments. If you think business, banks etc. are ripping you off stop spending. It is the only solution.

[@edparry4640]

Oh god. Save us from the muddled Reeves and Starmer

[@gabrielraphael57]

Glory!!! After so much struggles I now own a new house with an influx of $155,000.00 every month God has kept to his words, my family is happy again everything is finally falling into place. God bless America.

[@glcfoxw198]

I'm feeling motivated, could you share some details about the biweekly topic you brought up?

[@emilyamelia117]

I raised 75k and Claudia Ann Brandon is to be thanked. I got my self my dream car 🚗 just last weekend, My journey with her started after my best friend came back from New York and saw me suffering in dept then told me about her and how to change my life through her. Claudia A Brandon is the kind of person one needs in his or her life! I got a home, a good wife, and a beautiful daughter. Note!:: this is not a promotion but me trying to make a point that no matter what happens, always have faith and keep living!!

[@williams.johnson8694]

Wow 😱 I know her too miss Claudia Ann Brandon is a remarkable individual whom has brought immense positivity and inspiration into my life.

[@FelicityPaquette]

Very possible!, especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals like the woman you just mentioned.

[@PAAlexandos]

She is really a good investment advisor. I was privileged to attend some of her seminars, that's how I started my crypto investment

[@GenghisVern]

Do corporations really record asset revaluations in their P&L statements? Otherwise, I don't see from where the profit is coming.

[@TimMashin]

I actually thought your videos might be AI generated at first. It won't be long before it is impossible to tell.

[@OneAndOnlyMe]

"Ai, if it works" - Oh it works. I'm an implementer, I've displaced humans from back office business processes. 90% of back office work is repetitive toil that automation combined with machine learning can replace human actions.

[@dazulernen]

tell me more i am all ears. do you think england will be done for this year?

[@OneAndOnlyMe]

Actually, the broader S&P 500 has done just as well in the USA. S&P 500 tech sector gave it more of a boost, but S&P500 overall has done well. 2024 was the year of AI hardware (Nvidia) and capital outlay for AI infra. 2025 will be the year for AI products.

[@angelaleitch800]

Happy New Year. 🏴󠁧󠁢󠁳󠁣󠁴󠁿

[@stevo728822]

Do you think the building of the great pyramids of Egypt was an early example of a state funded project simply to employ people?

[@davidmcculloch8490]

While we see the expansion of Rolls Royce, to cater for the bespoke whims of the ultra rich, and the decline in the majority of the real economy, therein lies a clue. Inequality stifles growth.

[@RichardBrook-kq8dm]

Is "Universal Basic Income" the solution?

[@anjux3673]

How do banks reduce my capacity to spend? In my bank, I put money in, and I take it out when I want to spend it. If I don’t spend it, I get some interest on it…

[@anjux3673]

@RichardJMurphyCoachingLine why are you replying from Illinois USA, Richard

[@maria8809ttt]

It's spam.

[@anjux3673]

@ thanks …I thought it was!

[@James-ld2jc]

Go with the XR8 wheels - cool looking things

[@chrisherne6454]

I would add other pre-requisites and observations. Developing a new product is expensive. If you have a developed product, producing it is expensive. If you have produced it, marketing it is expensive. The end result of growth requires a considerable investment of capital. I am looking at the rising tax burden and the change of emphasis in the tax system to reward labour and punish owners of capital. Add to that the poor level of basic social services like transport, health and education, the disappearance of the Rule of Law, all come down to a strong motivation to owners of capital to leave the country. Banks are making record profits because they have outsourced the milk of human kindness to India and other places overseas. As a business owner, I no longer have a manager and have to deal with an impersonal service that is no longer interested in our company. Sorry. Growth in the private sector is not on the cards for the UK for the foreseeable future.

[@PMMagro]

From the outside it seems UK productivity is a long term issue?

[@SteveFarrOrg]

Great video! Private equity is certainly an area i want to explore and understand more. I think you are right that politicians while entertaining it don't understand it either. Its like the tsunami that's always brewing on the horizon that the public never sees because our media-driven political culture doesn't think it an important area of forecast although in other areas it can talk about the weather all day long. W need to know how private equity relates to not just growth overall (the thing policycians are obesssed about) but actually breaks down into stuff we all understand and are really concerned about. Do we even need private equity? That is to say are there any alterantive ways to grow the X or Y that concern us the most? Dividing up growth and reporting it reliably also very important, not least because not all forms of growth are desirable or sustainable and some types of growth can be darn right dangerous. Growth needs proper measurement, that we are not seeing, that make governments accountable for inequality and wellbeing and mobility, also maintaining the planet and the natural environment around us which is often overlooked. Its quite astonishing that the public broadcast news media portray the economy in terms of a bunch of numbers that don't relate to people and require pundits to explain those graphs every time they appear on out screens. It is easy to be led astray, by the various number quadrants around consumption and need for replacement (necessity vs luxury, etc.) There is a essential line of inequality that must be drawn through all our numbers. Measuring growth around a market economy that is predominantly built for the "haves" as opposed to the "have nots" should not be considered normal by governments, it should disturb both us and them, in a democratic sense, enough to seek real change. Governments with mere abstract notions of growth are a danger to us us all.

[@gregoryclifford6938]

How many of this fellow's British pounds haven't found their way into Chinese hands by the third transaction? Do you think that's a problem? Maybe they'll lend it back? Too bad there's no rehab for that kind of addiction.

[@philwoodfordjjj8928]

You have put meat on the bones of what I have observed in the job market, whilst searching for work and trying to keep the job once Iv'e got it. The attitude of the employers I've worked for over the decades has been sort term; your're there to fill a gap in the short term only; this is where the rise of the agency comes into play. Because of this, fewer and fewer workers are employed directly by a company as the agencies have taken over as labour exchange, allowing the employer to set on or lay off "skins" as needed. Brilliand for the pen pushers and middle men, not so much when one is trying to make ends meet.

[@nicholaspostlethwaite9554]

Companies got burdened with regulations, difficulties firing, excessive benefits like holiday sick time off, and costs like this recent NI addition. So stopped employing directly. That is the primary cause of the change. Agencies give then an arm's length and easier flexibility. yes great for employees, until they lose out being employees as a result!

[@boembajee]

If I understand you correctly: governments have bought into the idea that the only game they can play is shareholder capitalism, even though that leads to the rich sucking value out of the economy. Moral of the story: a capitalism society needs a government to set rules to keep the free market fair and prevent oligarchy. But the rules to govern the free market are complex (although a carbon tax would be an example of a simple rule that leads to market forces help us reach multiple goals) and the story of a free market and meritocracy is simple. The complexity makes it harder to decide which rules to enforce and to sell those rules as something to vote for. It also leads to a more complex society, which people grow to dislike (what we are seeing now). That is I think why the left is losing. And the left is very divided on which rules to set.

[@mohammadsiddiqui3564]

Private companies do not give a toss about the people of the country. They contribute little or nothing to the growth of the economy. In fact they can be detrimental to growth by increasing unemployment.

[@inguzwulf]

You mean large, already wealthy private companies. Sme's provide more employment and generate more tax (£ for £). Although there are a great many tax 'avoidance' schemes available to those wealthy enough to make use of them (as just one example: it might be legal but I consider tax deducted to 'encourage' charitable donations to be one such scheme: if someone truly wants to be charitable then let them give without a taxbreak back hander. That, in my mind, is not charitable giving).

[@nicholaspostlethwaite9554]

What is it with weird people that imagine emoting and 'caring' is anything a company should ever be involved in? Reducing employment to make as much or more with fewer people IS growth! Some odd mass employment for the sake of it, doing nothing but paying a wage is economic collapse.

[@Mike-lb1hx]

Private companies provide almost all the economic activity to fund the public services. Reducing employees is a good thing, its called productivity growth and is the key to economic growth and hence reducing poverty

[@CuriousCrow-mp4cx]

Bomber, that was another sortie that landed on target. You can have an economy which surpresses the income of the majority of consumers, and encourages rentierism in asset bubbles by the few asset wealthy, instead of productive investment in the real economy which produces jobs and raises income for the masses who rely on a wage for their living, and own few or no assets. That dog won't run. And Starmer doesn't understand that. I really don't know if he's even read a decent economics book. And listening to the class that socialised their losses onto the taxpayers, and still gepaid bonuses for mostly speculation in debt instruments is just naive. He's just blithely shuffling towards utter failure. And if that happens, politically it will open the door to more frustration translating into vote for people probably worse than Farage. And they'll turn everything over to the sociopathic asset strippers and vulture capitalists.

[@SennethLawrence]

Don't worry about it, trickle down economics will solve everything. .

[@andrewmallory3854]

We need degrowth and redistribution. And to rebuild the essentials - council type housing, healthcare, public transport...All the things that really made the UK great in the past and have been ransacked to provide the rich with unearned wealth....

[@physiocrat7143]

We do not need redistribution. We need Distribution.

[@khmerspirit3351]

I definitely agreed with every point. 👍👍 Private growth me as nothing if they use AI for it's only profits but people employment

[@outtheredude]

Remember when we had just enough socialism to enable capitalism to work for ordinary people and small businesses, with capitalism funding the socialism, yet keeping socialism's excesses under control, while the socialism in turn kept capitalism's excesses under control? This was the situation we had under Keynesian economics in the UK, which was a period of unprecedented economic stability, where socialism didn't run out of other people's money and capitalism didn't run out of other people's assets, because both fed the other. This allowed money and assets to flow and circulate freely around the economy, instead of being drained from the economy, which pretty much benefitted everyone. At least until the shocks to the global economy, such as the oil crisis, started to occur around the 1970s, leading to both socialism and capitalism reacting badly and divorcing each other, resulting in the winter of discontent and the rise of Thatcherism and Reagonomics based on neoliberal ideas. Now we have a situation where outside of the financial district of London, the rest of the UK has been so systematically asset stripped under neoliberalism, that it's ability to generate wealth has been reduced to somewhere around Mississippi, the poorest state in the USA.

[@Mike-lb1hx]

If AI reduces the number of people employed that is a good thing*, its called productivity growth. It frees up people to do something else and we gain by that something else. Next You will be campaigning to have someone walking in front of a car waving a red flag as it creates jobs * It may not seem/be so for those made redundant but even many of them will get a new better job / career

[@barrysnelson4404]

An AI video might be a welcome change from endless upper middle class virtue signalling.

[@maria8809ttt]

Various analyses show that in the 1930s Japanese finance minister Korekiyo Takahashi was able to jump- start the Japanese economy by allowing the central bank to create money to fund public works. Korekiyo is famous for abandoning the gold standard in 1931 and introducing a major fiscal stimulus with central bank credit that 'was found to have been crucial in ending the depression quickly. Ellen Brown has demonstrated how the German government used its currency issuing powers to finance public investment from 1933 to 1937 transforming a' bankrupt' country into the strongest European economy in just four years. While Ryan-Collins and others have shown that OMF (Overt Monetary Financing) was critical to the economic development of Canada (1935-71) and New Zealand (1935-9). Also OMF pulled America out of the Great Depression. OMF however has stipulation, it can only be proformed to create public good projects. This is why it is bypassed by the use of bond issuing currency creation via the private sector. That currency creation can be used to receive interest from citizens. OMF is not interest bearing, therefore of no interest to private banks as it reduces their profit potential.

[@maria8809ttt]

The UK can pull up before we hit the ground, but how far are those in power willing to let us fall.

[@maria8809ttt]

This is only if we keep our own currency and central bank.

[@physiocrat7143]

Germany and Japan? That didn't end well

[@maria8809ttt]

America??? Canada??? New Zealand??? The point I was making is OMF is a proven option to reverse economic downturn.

[@maria8809ttt]

A correct understanding of the capacity of monetarily sovereign (or currency issuing) government, and more specifically an understanding that such governments are never revenue or solvency constrained because they issue their own currency by legislative Fiat and therefore can never 'run out of money' or become insolvent. These governments always have an unlimited capacity to spend in their own currencies: That is, they can purchase whatever they like, as long as there are goods and services for sale in the currency they issue. At the very least, they can purchase all idle labour and put it back into productive use, such as caring for the elderly and disabled etc, etc. Macroeconomics.

[@NodrogMacphee]

Spot on ! for a change. Are we now staring at the end of capitalism I wonder?

[@alexjeffrey3981]

Capitalism is in deep crisis at the moment for sure, but as history and theory tells us, capitalist crisis has two outcomes - fascism, or socialism. And the fascists are capturing more of the working class than the socialists are right now.

[@anjux3673]

@@NodrogMacphee no. Capitalism is the only system that has ever succeeded and persisted ( you can talk about feudalism and trade tradition all you want, it’s just capitalism by another name). Capitalism started the first day a palelithic hunter found a better way to flake an arrow head…he sold these for food , access and service and tried to monopolise his skill…or agreed to train others for that price…)

[@NodrogMacphee]

@@anjux3673 But its run up against the buffers , no room to grow.

[@nicholaspostlethwaite9554]

@@NodrogMacphee It will change as the world enters the oncoming depopulation era. Not sure it's mechanisms will change though. Why would they'. They are effectively forces of nature.

[@maria8809ttt]

The exponential growth in personal debt is unsustainable, this in turn will lead to high levels of mass default, this will then lead to a panic (whom is holding the bad debt.) As experienced investors pull their investment capital to safety. There will be a liquidaty crunch and a breakdown of the global banking system. This is where sovereign central banks and governments step in, as was done in the Global Financhel Crisis. Only this time it will lead to an economic downturn larger than the Great Depression. I don't think the Capitalist Neoliberal Doctrine will be seen as successful when this turmoil comes to pass. The system will not sustain this level of inequality for ever. The automatic stabalises built into the system will engage. As the saying goes, we shall see who has been swimming naked. The Global Financhel Crisis will seem like a walk in the park. Let's hope that there are stable and knowledgeable governments when this happens. I won't hold my breath.

[@ecoterrorist1402]

Did you train Rachel from accounts.

[@anjux3673]

Can I just point out that interest rates were raised by central banks to reduce inflation…not to make banks more profitable….

[@anjux3673]

@ why are you replying from Illinois USA, Richard?

[@charleswillcock3235]

Another great video.

[@roymillsjnr5172]

The only growth labour as is "priapism". 😂

[@jilladams3807]

❤❤❤❤❤

[@joegibbs448]

Richard J Murphy advocates for more comsumption. But how can that be achived when people arn`t paid enough. The buying of the currency is reduced and the constant indirect pick pocketing of our meager income by the state and others.

[@arthurdixon5890]

The UK is a Service Economy (thanks to the Tories). Services have been a race to the bottom for the past 20 years. Everyone looking for cheaper and cheaper service costs. How can we increase growth on a diminishing price base? Thanks for the video. Thought provoking, as always…

[@physiocrat7143]

Manufacturing has been taxed to death. It started in 1945.

[@arthurdixon5890]

@ Agreed. 4 generations of my family (with me as the youngest and I will be 75 years old in the spring) worked in the same manufacturing factory in Trafford Park. I now work in the service industry.

[@1599maybole]

Labour were in power during a big slab of the past 20 years

[@arthurdixon5890]

@ And the state of the country reflects this.

[@physiocrat7143]

@@arthurdixon5890 The UK economy is in much the same state as most of Europe which was not part of the Eastern block. Industry was taxed to death with the wrong sort of tax system. Governments are advised by the wrong sort of theories peddled by the wrong sort of experts.

[@spudinho1]

I'd like to draw people's attention to a really useful and important book - "The Invisible Doctrine", by Monbiot and Hutchison - which analyses our current neoliberal economy, explains how we got here and alerts us to the real harm that this form of "capitalism on steroids" is doing. This includes the growing wealth inequality that RJ Murphy mentions here. Read it now!

[@maria8809ttt]

Excellent, also I would recommend Reclaiming the State by Mitchell and Fazi. William Mitchell is one of the world's leading heterodox macro economists and Professor of Economics.

[@physiocrat7143]

Monbiot is part of the problem. He is schtum on policies which would really work.

[@michaelmayo3127]

Redistribute wealth and then give public-sector employee a noticeably wage lift, thus more money will be used to stimulate the everyday economy, thus giving more activity in the private-sector, thus from which cometh more tax revenues. And more tax revenue means; more cheap finance for badly needed public-sector investments. The result being, a better quality of life for all!!

[@physiocrat7143]

How?

[@michaelmayo3127]

@@physiocrat7143 How what?

[@physiocrat7143]

@@michaelmayo3127 How do you propose to redistribute wealth? How you thought of something new, that has not been tried and failed?

[@michaelmayo3127]

@@physiocrat7143 " thought of something new" No need, there's more than enough information and experience tobe found in the way in which the Scandinavians have redistributed wealth. No need to reinvent the wheel!! And they have the highest quality of life and the highest GDP in Europa.

[@physiocrat7143]

@michaelmayo3127 I have lived in Sweden for most of the past 15 years. The country ticks a lot of boxes, but the system here doesn't really work as well as it appears from the outside. A handful of families are immensely wealthy. Most people struggle to get by. The under 25s, and migrants find it difficult to obtain work. Unemployment figures are massaged. There is a serious housing shortage, with 10 year waiting lists. Health services and schools are failing. People who want to start business are hounded by the tax authorities. Manufacturing has been wiped out. We are not a model to be followed. We have only got away with it so far due to having a small population and a lot of space. Do you have an idea that could work? Scandinavia does not do it.

[@shaunmiller7370]

For Britain’s economy to grow, we have to invest our selves rebuilding the infrastructure that is crumbling or water or power. Get it out of the hands of private companies are the roads are railways so they are owned by the people this will grow. The country society in this country is become a service industry we need to invest in the schools, we need to invest in the people of our society for our society to grow private equity does not work because they take the profit away and the profit is what we invested back into the country. Giving companies tax breaks is not a smart idea. Given individuals tax breaks because that trickle down economics does not work. Richard Murphy says it better than I can ever what the Labour Conservative and reform would do is get the private sector mean and we had 45 years of private sector and look where the country is now we owe nothing even down to our football teams who are owned by American syndicates, Chelsea was sold off. We had a British syndicate you came up and save money but because of his like no we’re selling it to an American syndicate instead of the investment staying in this country it goes out of the country

[@walker9893]

Richard, I don't wish to cause offense here, so please forgive my bluntness, I struggle a bit with tact. It's always nice to see when someone you enjoy listening to broaches one's own subject area. Unfortunately, hearing you discussing AI was a little jarring and very confidently incorrect. I agree with your sentiment mostly. The UK offers very little in the way of technological innovation. There is an underlying set of cultural reasons for this that would be too long for this comment. Relative to competing countries, we barely pull our weight. In terms of ChatGPT and other LLMs, calling them a "Glorified Google Search" so confidently is surprisingly ignorant to me. But perhaps in how you and other people might view their use, that could be somewhat accurate. AI content and video is, as with all AI produced content, rejected at first. AI is never, and has never been in a finished state. It was only a few years ago that we could not produce AI video at all. Only a few years of further development and AI video will reach a point where it satisfies the MAJORITY (Key word) of it's audience, and will thus 'pass'. You can think of a equivalent parallel being the development of newspapers and propaganda, the older stuff is very obvious to an educated observer, but over time, most people picking up newspapers take them at face value, despite even being educated at their alterior motives, which demonstrates the development of messaging and communications being effective. You will always have a few intelligent people on the fringe pointing out the phony intentions, but the MAJORITY buy in is all that is needed before these people are dismissed by the masses. The same will be true of all AI products, almost by definition. Thanks for the hard work and good videos

[@maria8809ttt]

I am hoping that the information that is being inputted to AI by Professors in macroeconomics will eventually bring correct macroeconomic information to the general public. Allowing understanding on how the global monatery system actually works, also the capabilities available in providing a better life. This is not my area so I have no idea if the correction inputted to AI can be interfered with by people that control the system. I would be interested in knowing how AI would assess this information.

[@nigelmilton8902]

Spent over 30 years identifying great British growth companies to invest in. Still many of them out there. Many have high levels of international sales helping with the balance of trade. This video makes some reasonable points but is far too broad brush. Need to go back to school and do your research.

[@jamesbarnes8016]

Richard and Kier are incorrect. Growth comes from: 1. Innovation 2. Product-market fit Both have historically been more successfully delivered by the private sector.

[@Redf322]

Kier and Richard are from very different ideologies. So your comment makes no sense.

[@Commonsense-u1h]

The only good thing they´ve done is end the ban on renewables being built in mainland Britain and they have made it easier to renationalise the railways. Apart from that, they´re hopeless.

[@andrewcrawford1003]

Imagine Richard J Murphy interviewing or questioning the pm or chancellor on the BBC. Now wake up.

[@muddy11111]

It would be a lot easier to concentrate on the subject without the enforced subtitles.

[@dazulernen]

mate people are jumping off the ship and they go to germany, spain thailand switzerland. many are already fleeing from the sinking ship so called United kingdom

[@nicholasbyrne3007]

So working people sell their labour and with wages purchase goods and services. If the real value of wages decreases then less goods and services are purchased. You can not have real economic growth without growth in real labour income. Is this the nuts and bolts of it?

[@physiocrat7143]

Working,people produce and exchange goods and services. Landowners, the government and banks get a rake-off on the way.

[@caparn100]

During the COVID pandemic, a lot of money was printed to support the economy, but this has led to rising prices and made life more expensive. To keep up with the higher cost of living and make things fair, *everyone needs a pay rise* so they can share in the benefits of the extra money in the system. This would also help people spend more, which would boost the economy and make recovery stronger for everyone.

[@1599maybole]

If everyone gets a pay rise inflation goes up, prices go up and nobody has advanced at all

[@caparn100]

@@1599maybole If no one has enough money to buy what they want (cost of living crisis) the economy will suffer.

[@pairedsoles2822]

Private sector is the only driver of growth

[@helenheenan3447]

No, the private sector cannot function without government spending on infrastructure, education and health. Or without the legal system, police, courts. You are talking nonsense.

[@pairedsoles2822]

@helenheenan3447 all funds available to government has been generated from the private sector.

[@DialecticDave]

@@pairedsoles2822 All funds available to the private sector are a product of monetary supply controlled by central banks. All wealth is a product of labour.

[@stumac869]

The private sector won't grow under a Labour government because they'll be over regulated and taxed to death. Meanwhile we've had an endless expansion of government under New Labour, coalition and Conservative governments that's now close to 50% of GDP which is communist level spending. Is it any wonder we're reliant on debt spending, inflation and endless population expansion to artificially inflate GDP whilst at the same time GDP per capita and productivity remains flat or falling. We've had New Labour policies since 2007 and it's been a complete disaster for this country.

[@DialecticDave]

No we've had neo-liberalism since 1979 and it's asset-stripped the economy. There has been an unprecedented transfer of wealth from the middle-class to the top 10% since 2008 and that has starved our economy of liquidity and investment.

[@nicholaspeyton5460]

@Richard J Murphy: Got a better idea? Politicians see NASDAQ's 30%+ annualised returns over the last decade and wonder why the UK can't match it. Starmer likely wants to ignite the US-style entrepreneurial spirit here.

[@RichardJMurphy]

@@nicholaspeyton5460 30% returns are not possible in reality. Those are hyped valuation increases, not actual returns. Starmer does not get that. This is bubble country.

[@terencefield3204]

More profound state socialist bloody ignorance, after 80 years of the same thing when will this sort bloody ridiculous video stop being made?

[@12theotherandrew]

“Financial engineering” what a lovely phrase for “cooking the books”. Definitely a ‘must use’ phrase. 😂

[@zippy_uk1046]

This is a Marxist analysis reliant on comparing profit vs "social use" values which is discredited. Economies are constantly specializing and driving down costs and promoting innovation - this has stagnated due to high taxes and an overheated property market + adverse demographics. We need supply side reforms to drive down costs and tax brreaks to fund innovation and investment.

[@thetragicyouth]

"tax breaks to fund innovation and investment" - is that you, Liz?? 🤣🤣🤣

[@markwelch3564]

If it was all about profit, and social use was discredited, we'd all be dealing drugs But in reality, social use is actually rather important!

[@zippy_uk1046]

@markwelch3564 Social use is a made up number - you can't define or measure it - but it sounds great.

[@iainsneddon3010]

Richard doesn't mention social use, he states that conventional companies supply goods their customers need, very different. Also where is your evidence that the Marxist analysis is discredited? Your opinion only? Which sectors of the UK economy are 'constantly specialising..., etc' and being held back by a high tax regime? If companies have a good product to sell at profit why do they need tax breaks as subsidies? This sounds very uncapitalist, though hasn't stopped the US basing their economy on it. The property market is not overheated due to recent large interest rate rises and lack of affordability.

[@zippy_uk1046]

@@iainsneddon3010 Reading between the lines this is the point he is making - its not that "social use" as an idea has no merit - you can't define or measure it. Property prices historically where 2.5 times average earnings which means todays market is definately overheated - mainly due to money printing inflating asset prices. There are no successfully run economies based on Marxist principles.

[@imbonkers3629]

Right now 10 year gilts 4.68 😮 30 year at 27 year high much much worse then truss lol and you lefties thought labour was the answer 😊ENJOY

[@annesaunders3851]

'Lefties' all knew Labour was not the answer any more than disastrous Tories were.

[@lonevoice]

So what is?

[@elvwood]

Actually, lefties are as divided in their opinions as righties. Many thought a different version of Labour was the answer, and that a Starmer Labour government was just a bit of damage limitation when there were no good choices (better to be sliding towards oblivion slightly slower than under the Tories).

[@rainbowevil]

Very few lefties thought that the current Labour government was the answer. Pay attention. Accurate name at least.

[@annesaunders3851]

@lonevoice nothing the uniparty is ever going to offer us.