[Politics] Liz Truss **RESIGNS 20/10/2022**

[Baldseagull]

Can someone explain to Thicko here the following.....and a "you are completely wrong" is fine.

Am I right that the VERY basic logic of interest rate rises are to encourage us to save?

Yet NI is decreased in an effort to encourage us to spend and boost the economy.

Which one am I meant to be doing?

At the moment, ultimately, any extra cash I have each month isnt going to be spent in the economy. I'm using it towards the higher bills.

Interest rate rises are an attempt to reduce borrowing, more than increase saving. Spending is good as long as you are not borrowing the cash you are spending. Spending money on your UK bills is money spent in the UK economy, even if it is a foreign company ultimately receiving the cash.

 

[Audax]

I hope this succeeds too, but I can’t see that it has any chance. Surely everyone realises that trickle-down theory doesn’t work

History tells us it won't. Just been reading some tweets pointing out that the last two times a budget like this went out, both failed spectacularly. There's a key difference this time, though, and it's not a favourable one for Kwarteng. The last two times, there was "slack" in the labour market - plenty of under / unemployed people available to enter employment and help drive the growth the budgets were intended for. We don't have that this time. The labour market is tight, and expected to get tighter (immigration policy, baby-boomers getting to retirement age). Simply put: the labour market won't support this growth plan.

I'm actually very worried this is going to implode even more rapidly than the 1972 budget did. Already seeing predictions that we could see the housing market collapse rapidly off the back of today.

Edit: at least it now looks like GBP has stabilised around US$1.1050-ish.

 

[Bold Seagull]

But people need money in their pocket to be able to spend, and for years now we have seen disposable income shrink. (Higher bills, suppression of wage growth meaning artificial measures have been needed like a minimum wage, a housing market that was allowed to run out of control (great if you already owned, but terrible if you didn't at the time - but it led to extra borrowing against that increase which temporarily funded spending) and the knock on effect for renters having to pay more, 0% credit cards which encouraged people to get into debt, higher taxation and the increased need to get revenue from the public to pay for ever more expensive services (from additional taxes on energy (for green projects), to taxes on street parking (via parking meters) which also drives customer numbers down in retail areas as it makes things more expensive and so on..... but all reduce disposable income.

Of the total value that the tax cuts work out at, 45% of the value will go to the 5% wealthiest in the land. Only 12% of the value will go to the poorest households. That is not the distribution of tax cutting that you are talking about.

 

[Audax]

Talk has already started that the next BoE interest rate hike will be *at least* a full 1%.

The stamp duty cut is going to get swallowed up by interest rate pressures before it even has a chance to have a positive impact.

 

[Bold Seagull]

Interest rate rises are an attempt to reduce borrowing, more than increase saving. Spending is good as long as you are not borrowing the cash you are spending. Spending money on your UK bills is money spent in the UK economy, even if it is a foreign company ultimately receiving the cash.

Is it worth sending this to Kwasi?

 

[Thunder Bolt]

Tbh, no I don't.

It is difficult for everyone, however ever since the Brexit vote it just seems that some punters hope of failure in order to be able to cock a snook and say 'I told you so'.

I feel it is a calculated gamble, hopefully one that will pay off.

Quite frankly, right now, I have no idea but I certainly hope it does.

Read some of the experts' opinions on it and try to get an idea. This Budget is being compared to Anthony Barber's budget in the 70's which led to Boom and Bust, lost Edward Heath his leadership, and inflation.

https://www.bbc.co.uk/news/live/uk-politics-62994747

 

[Guy Fawkes]

Of the total value that the tax cuts work out at, 45% of the value will go to the 5% wealthiest in the land. Only 12% of the value will go to the poorest households. That is not the distribution of tax cutting that you are talking about.

Hence why i don't agree with the top rate being abolished.

However, the higher earners pay more tax (or should do anyway) so a general across the board 1% cut in income tax would till mean that higher earners will benefit more simply because they pay in more, and have more of a wage to be taxed on. Lower earners have a far larger percentage of their wages that is tax free, so will only benefit by a very small amount in comparison. (why i also think the amount you earn before paying it should have increased to help, but that too would have benefitted the rich, aagain as they pay tax from the same starting point)

 

[Thunder Bolt]

Hence why i don't agree with the top rate being abolished.

However, the higher earners pay more tax (or should do anyway) so a general across the board 1% cut in income tax would till mean that higher earners will benefit more simply because they pay in more, and have more of a wage to be taxed on. Lower earners have a far larger percentage of their wages that is tax free, so will only benefit by a very small amount in comparison. (why i also think the amount you earn before paying it should have increased to help, but that too would have benefitted the rich, aagain as they pay tax from the same starting point)

I agree. £12570 is a ridiculously low threshold for paying income tax. It should be set nearer £18K imo.

 

[Eeyore]

Premier League footballers will have a lot more cash to wipe their bums with.

 

[Paulie Gualtieri]

Premier League footballers will have a lot more cash to wipe their bums with.

Tightening income based benefit rules will create a new market for bum wipers, Deliverpoo maybe?

 

[Randy McNob]

 

[beorhthelm]

View attachment 152123

wow, energy companies getting more every week, now 400bn a year! are you sent these with instructions?

 

[WATFORD zero]

Tbh, no I don't.

It is difficult for everyone, however ever since the Brexit vote it just seems that some punters hope of failure in order to be able to cock a snook and say 'I told you so'.

I feel it is a calculated gamble, hopefully one that will pay off.

Quite frankly, right now, I have no idea but I certainly hope it does.

Blind hope over all evidence to the contrary. Don't change a winning formula

 

[Audax]

Value of Sterling recovered a bit through the early afternoon. Peak was reached at just below US$1.11 a little after 1 pm. Since then, however, it's started sliding again and is now hovering dangerously close to falling below US$1.10.

 

[Springal]

Value of Sterling recovered a bit through the early afternoon. Peak was reached at just below US$1.11 a little after 1 pm. Since then, however, it's started sliding again and is now hovering dangerously close to falling below US$1.10.

Good news for bankers shorting they pound today though - with uncapped bonuses they’ll be quids in.

 

[A1X]

They're not even taking our money and giving it to the super rich. They're borrowing money at extortionate interest rates to give to the rich then demanding we all pay it back instead of them.

 

[Bold Seagull]

They're not even taking our money and giving it to the super rich. They're borrowing money at extortionate interest rates to give to the rich then demanding we all pay it back instead of them.

It doesn't matter, by 2025 it will all be Labour's fault.

 

[A1X]

[tweet]1573307710023647232[/tweet]

 

[CHAPPERS]

[tweet]1573310225209253888[/tweet]

That's good then.

 

[Dr Q]

Tightening income based benefit rules will create a new market for bum wipers, Deliverpoo maybe?

or PooBer