Comments by "boz" (@BOZ_11) on "'Labour is adopting the Rishi Sunak strategy' | Lewis Goodall on LBC" video.

  1. There is no national piggy bank with a set number of British Pounds. HM Treasury creates pounds out of thin air, and public sector spending causes nearly no inflation since it grows the economy. The source of the majority of price inflation is actually caused by BoE (central bank) interest rate hikes; historically speaking, double digit interest rates have ALWAYS accompanied double digit inflation. Govt spends FIRST, taxes SECOND. The fiscal "deficit" is quite literally private sector income (double entry bookkeeping, people)
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  2. listen, i'm a socialist, and i cant vote for Starmer (Corbyn, yes).
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  3.  @henrysnowdon7563  "Interest rate hikes lower inflation" ---This present round of inflation was caused by energy price hikes (around 70% increase, which is enormous). Since all goods and services require energy, rising energy costs have increased prices everywhere. The BoE's response should have been to drop rates near zero, instead, they exacerbated the situation by making money, credit, mortgages, loans etc more expensive. Any fall in prices due to decreased consumer spending (from hiked rates) will barely make a dent in the face of higher rates and energy prices, and rich individuals/businesses causing price inflation with housing and rents. As for your last point, private sector growth can only happen through public sector investment and/or cheap credit to businesses (which require low rates!). If you go through historical interest rates and inflation, you'll see that more often than not, price inflation tends to proceed rate hikes, not precede.
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