Where was the risk??
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[Politics] Johnson blames energy price rises on Putin
- Thread starter Harry Wilson's tackle
- Start date
Where was the risk??
According to Labour MP Lloyd Russell-Moyle, Britain produces 75% of it’s own energy and the cost of production has not gone up. In his view we should not be letting British energy companies claim this is the effect of a global problem to charge exorbitant amounts for energy we produce anyway.
I’d have to do more research on that but interesting if true.
I’d have to do more research on that but interesting if true.
That’s energy suppliers not producers. Suppliers make little or no profit, producers make billions.
Risk of inflation, I’m told. Which I believe to be true.
You keep getting this wrong. So much so that I think you’re doing it purposefully. Nobody has blamed Johnson for the energy crisis. We are accusing him of doing nothing effective to help. It’s an easy concept to grasp, surely?
You said there was a risk of inflation, where was the risk.
I suggest if you do not know what you're talking about then shut up.
Firstly, please don’t be so rude. It’s not necessary.
Secondly, it wasn’t me that said it cause inflation. It was Kinky Gerbils.
French Seagull
Active member
The government needs to control the price fairly.
The UK has the highest increase in Europe, indeed Frances increase is 4%
The likes of British Gas, NO and Shell are making record profits. This is paid for by the public, small businesses and industry. Then given to shareholders. No one is doing anything and something could be.
The UK has the highest increase in Europe, indeed Frances increase is 4%
The likes of British Gas, NO and Shell are making record profits. This is paid for by the public, small businesses and industry. Then given to shareholders. No one is doing anything and something could be.
Prof. Steve Jones, UCL, FRS. I'd second his thoughts Harry. But I add dirty rotter, scum, ***t.
I think you owe The Clamp and apology mate.
Some research shows you to be incorrect as it turns out;
According to Jorgan Halmse of Quora;
Bailouts tend to weaken a government's fiscal position, which tends to lead to inflation. However, it is worth noting some qualifications.
Bailouts at realistic prices should produce substantial profit for the government, making it easier to control inflation. I don't know of any case in which the prices were realistic.
If the government has otherwise sound fiscal policy then it can absorb some bailout loses without inflation. Again, I doubt that this applies in practice: countries with generally sound fiscal policy are unlikely to make bailouts. However, if fiscal policy is only moderately bad then perhaps the government & central bank will scrape by without an increase in inflation.
So it seems bailing out banks etc does carry a risk of raising inflation.
If I was a lesser man, I’d tell you to shut up if you don’t know what you’re talking about. But I was raised better.
Machiavelli
Well-known member
It is true.
The UK could withdraw from the global gas/energy market and, if it did so, prices would plummet. It would mean that the UK would have to become self-sufficient in its energy needs, and it would signal a drastic change in the UK's position at the vanguard of advocating the value/importance of global markets and that there is no alternative to them.
Our next PM thinks she's resurrecting Thatcher. She doesn't quite realise that Thatcher switched taxes, rather than cut them. Thatcher switched them from 'progressive' taxes on labour (ie so the rich pay) to consumption taxes (ie so the poor pay). Bizarrely, our next PM is proposing to do the opposite that Thatcher did, which is to cut VAT (the tax on the poor), rather than to raise it, which is what Thatcher did.
Would it be possible to tax the producers?
Honestly don’t know, seems difficult to the point of being nearly impossible ?
rogersix
Well-known member
- Jan 18, 2014
- 7,909
what do you think will occur in the near future?
All pissing in the wind a bit, I guess it does all add up along side other measures.
To play devils advocate and it’s not something I overly agree with, these companies got hammered during the pandemic and I don’t believe they got a bail out, shouldn’t they be able to make that money back?
I don’t know the answer, they all seem to have issues.
Machiavelli
Well-known member
Jeez. I disagree with most you write connected to politics and economics. The latest point of disagreement is that you haven't grasped the concept (let alone the actuality) of windfall taxes.
But it did not raise inflation which you said it might. We are talking about today not years ago. If the BOE printed money today trust me inflation would rise. If the government borrows money with today's interest rate we would go in recession. Happy to meet you at the Buck for a pint and a chat and apologize for the remarks. But their are a fair few on here who are ill informed.
How did energy companies get hammered in the pandemic? Their shareholders all made profit. I don’t see how. Genuine question.
And if they did get hammered, they all seem to be still trading. Forcing people into abject poverty so they can recoup losses is not an acceptable strategy.
As you say though, a definitive answer is elusive.
I’m happy to be corrected and educated, I just don’t like being told to shut up.
Thank you for the explanation. It is appreciated.
I’m asking who do you tax and how ? I’ve said I’ve misunderstood
How do you tax a producer, who given the current situation seems to hold a whole lot of power
There has already been a windfall tax.