Comments by "Greg Greg" (@SlowhandGreg) on "UK borrowing costs higher than Liz Truss' premiership | Liam Halligan warns BoE to control inflation" video.

  1. government spending is subject to an economic multiplier in the case of the proposed tax cuts its around 0.2-0.3 which means for every £1 the Treasury looses in income it gains an average +25p through expanded demand and GDP growth If you look at Osborne's corporation tax cut UK debt to gdp rose by 10% during the 2016 - 2019 period they delivered nothing growth was stagnent 10% of gdp to debt in today's money is 313 billion
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  2. Blanket tax cuts don't generate growth here's why the markets freaked out All government spending is subject to an economic multiplier here's a recent example worked out that a 10% pay rise for NHS staff had an economic multiplier of 0.81 for every £1 spent the Treasury recovered 81p. The 1st hit is with the £1 getting hit with both income NI and student tax the remaining money is spent in the wider economy generating more GDP hence tax there is also every likelihood of reduced staff churn which generates savings and less money spent on Agency staff. This excludes benefits from having a fitter healthier workforce. Onto Truss's tax cuts in general these would have generated for every £1 cut between 20-30p in additional income through GDP growth because the economic multiplier is around 0.2-0.3 so its no wonder the markets freaked out. We have 50 years of data to look back on so this idea that cutting taxes is a magic recipe for growth is complete BS like other Zombie ideas the ultra wealthy keep resurrecting it because it benefits them and think the average person is too stupid to go learn how this stuff works
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  3. government spending is subject to an economic multiplier in the case of the proposed tax cuts its around 0.2-0.3 which means for every £1 the Treasury looses in income it gains an average +25p through expanded demand and GDP growth If you look at Osborne's corporation tax cut UK debt to gdp rose by 10% during the 2016 - 2019 period they delivered nothing growth was stagnant 10% of gdp to debt in today's money is 313 billion The gilt people know these figures we have over 50 years of data on this stuff
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  4. so that when politicians fk up they can stop the economy melting
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  5. QE is partly responsible but Energy is the chief driver in this case Its estimated that the UK energy market will make 170 billion in excess profits over 2 years the sooner we transition to renewables the better to be honest
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  6. All government spending is subject to an economic multiplier here's a recent example worked out that a 10% pay rise for NHS staff had an economic multiplier of 0.81 for every £1 spent the Treasury recovered 81p. The 1st hit is with the £1 getting hit with both income NI and student tax the remaining money is spent in the wider economy generating more GDP hence tax there is also every likelihood of reduced staff churn which generates savings and less money spent on Agency staff. This excludes benefits from having a fitter healthier workforce. Onto Truss's tax cuts in general these would have generated for every £1 cut between 20-30p in additional income through GDP growth because the economic multiplier is around 0.2-0.3 so its no wonder the markets freaked out. We have 50 years worth of data to back this up
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