Risks of Burning Out Our Economy ?

Day 863, 13:05 • Published in United Kingdom France • by Melophore

The current figure of inflation is stagerring, 42.17% in a month. With the average wage at 4.41GBP, buying the Q2 food at 1 GBP, buying one Q1 weapon at 2.50GBP and an 0.88 GBP income tax, your left with 10 p that you can save. If you earn less than 4.3 GBP a day, your wellness can only get worse.

The measures TUP put into place have increased wages, but have sent prices skyrocketting. Their measures have not really increased social mobility (that means going from poor to rich...) at all. You are barely have a confortable life if you are earning more than 5 GBP a day.

I run a company, work for 1 GBP a day to try and preserve profitabliity. I see staff on 4 or 5 GBP a day see there health decline, I easily spent around 200 GBP this week to bail out those whose health is critical.
When you own a company you have two choices, help them out or fire them.

What I find suprising is that a centre-left government has put company managers to fire sick staff ! A centre-left party supported by the PCP. (And internally, Jamie Carter supporting the TUP doesn't give the Socialist Party anymore credibility.)

How many people are complaining about health since the change of hosiptal rules ? Who are affected, the poor whose productivity drops. Indirectly the companies that did as TUP asked, increase wages to see their productivity and profit margins drop.

Maybe TUP as just looking for a quick fix to get their Country President elected ! And after, what happens ?

The future bankruptcy of the British eEconomy

If inflation continues and the GBP keeps losing value compared to gold, it will become profitable for foreign industries to sell their products in the UK at a profit despite the 99% import tax. It wouldn't take much for a new "Soviet Commune dumping" to ruin all of british companies.

We willl have a sick unproductive workforce working for high wages buying foreign products because it is too expensive to produce them in the UK. We will see poor British citizens just roll over and die because there is nothing left for them to do.

What needs to be done ?

A massive effort has to be done to block inflation, block wages, increase productivity and reduce income tax to help exporting companies.
I outlined this in a previous article Industrial Britain : A long term strategy.
We also need a Benefit system to help UK citizens maintain their health

TUP choose the easy cheap solution of injecting cash into the money supply, when we need to boost spending power. The cheaper our products are, the easier they are to export, clearing the nation of excess production.

Are we facing a burnout ?

Today's economic situation is like a game musical chairs. Every company is increasing wages and prices trying to draw the remaining productive employees to insure it's survival. At the end, when 80% of the population is too ill to work, companies will go bankrupt.

This can reduce overall economic productivity rates, as the capital required to retool companies becomes more elusive or expensive. High inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future.

Well aren't goods like Q2 food hard to come by ? We are in a cost-push inflation, prices raise, wages must be raised, health drops, so does productivity, so prices go on going up... Hoarding as well is in action, people are just stocking up goods because prices can gain 10% overnight !

Even if Keers holds to his Hayek's business cycles... According to the Austrian Business Cycle Theory, inflation sets off the business cycle. Austrian economists hold this to be the most damaging effect of inflation. According to Austrian theory, artificially low interest rates and the associated increase in the money supply lead to reckless, speculative borrowing, resulting in clusters of malinvestments, which eventually have to be liquidated as they become unsustainable. Even Hayek says that inflation is an unsustainable solution.

There is connections between unemployment and inflation, inflation ruins companies causing unemployment to go up.

The fact is that the GBP is debased compared to gold, that is the international currency. It is time for the government to start reducing the money supply to give the GBP some value.

We are heading to a major collapse of the economy, unemployment and bankruptcy.

We need a long-term industrial policy !