Companies and workers are trying to pass the impact of inflation onto each other — and that risks persistent inflation, according to Huw Pill, the Bank of England’s chief economist.
“What we’re facing now is that reluctance to accept that yes we’re all worse off, we all have to take our share,” Pill said on an episode of Columbia Law School and the Millstein Center’s “Beyond Unprecedented” podcast, released on Tuesday.
https://www.cnbc.com/2023/04/26/ban...brits-need-to-accept-were-all-worse-off-.html
All talks and no solutions!!
"So somehow in the U.K., someone needs to accept that they’re worse off and stop trying to maintain their real spending power by bidding up prices, whether higher wages or passing energy costs through on to customers, etcetera.”
So you want people to not spend and the businesses all close down and they enter a recession?? There is a website that I visited that actually keeps track of all the restaurants, pubs and bars have closed down since covid. Over 70% of the food service establishments have permanently closed down since covid, including many Michelin-starred ones so people are already cutting down on spending. It's already starting...
"He added that the U.K., which is a
net importer of natural gas, faced a situation where the goods it buys from the rest of the world had gone up a lot relative to what it is selling to the rest of the world,
primarily services. The U.K. imports
nearly half its food."
Well maybe the solution is don't f***ing eat so much! And grow your own food perhaps. That doesn't need natural gas, does it? And if what you are exporting to the world is not commanding that much price, then perhaps export something else that's worth more would help? Or a better solution, not export at all and just have a closed economy? Brexit is supposed to be a boom for the local economy so why the hell is Britain still importing when they can't even export to earn enough money? Why is Britain still trading with other countries when they exclude Britain from all the markets for their exports but still dump s*** on Britain?
"But
some argue the U.K. is particularly at risk due to its import-heavy economy, weakness in the
British pound and a tight labor market which has been constrained by Brexit."
Britain should operate like Japan. Develop robotics to create the productivity it needs and then just produce their own goods and then if there is anything leftover, then export. And close its own f***ing economy! Globalization is not for everyone. It only works if it benefits you. If it doesn't, then a closed economy is better.
