Is CV-19 the end of Capitalism?
Discussion
I just can't get my head around what is going on at the moment with all this cash being handed out!!!
Has CV-19 just stopped Capitalism for the next few generations?
With the recent announcements by the Chancellor of unimaginable spending, I can not see how it will ever be paid back. Once we are rid of CV-19 (and we will defeat it) how on earth will anyone be able to balance the books? Massive austerity measures and ultra high taxation isn't going to go to be enough and who will vote fo that? Obviously many other countries are carrying out similar fiscal policies to the UK and will face the same hurdles as us in the near future.
I think that we are in a new financial reality that looks a lot like MMT. If we don't act as we are, then surely we face complete economic collapse. The debts that are being accrued will take several lifetimes to pay back. Will countries seize money held by the ultra wealthy US tech companies and look at all other companies holding cash within their organisation?
Please leave political party allegiances away from the discussion
Has CV-19 just stopped Capitalism for the next few generations?
With the recent announcements by the Chancellor of unimaginable spending, I can not see how it will ever be paid back. Once we are rid of CV-19 (and we will defeat it) how on earth will anyone be able to balance the books? Massive austerity measures and ultra high taxation isn't going to go to be enough and who will vote fo that? Obviously many other countries are carrying out similar fiscal policies to the UK and will face the same hurdles as us in the near future.
I think that we are in a new financial reality that looks a lot like MMT. If we don't act as we are, then surely we face complete economic collapse. The debts that are being accrued will take several lifetimes to pay back. Will countries seize money held by the ultra wealthy US tech companies and look at all other companies holding cash within their organisation?
Please leave political party allegiances away from the discussion
Current UK national debt stands at almost £2 trillion. 12 months of covering the forced unemployed salaries, up to £2,500 a month, will add a few hundred billion to this. So in terms of interest repayments, it will make f
k all difference. The debt was already soon to overtake GDP.
All that matters now is people have money for shelter and food. If that were to fail, you’ve got a state of anarchy in very short order. Capitalism was in big trouble anyway, this virus has acted as a very effective catalyst to what will be the collapse of fiat money. Which is probably a good thing.
k all difference. The debt was already soon to overtake GDP.All that matters now is people have money for shelter and food. If that were to fail, you’ve got a state of anarchy in very short order. Capitalism was in big trouble anyway, this virus has acted as a very effective catalyst to what will be the collapse of fiat money. Which is probably a good thing.
Ayahuasca said:
No.
Care to expand why you think not? And how the books will be balanced? I have to be totally honest and say I can not see (or understand) how we get back to anything resembling what we had after such a huge shift in financial ideology. With no firm exit date from the CV-19 crisis how long will the money keep being printed?
Where does it end......
Piha said:
Ayahuasca said:
No.
Care to expand why you think not? And how the books will be balanced? I have to be totally honest and say I can not see (or understand) how we get back to anything resembling what we had after such a huge shift in financial ideology. With no firm exit date from the CV-19 crisis how long will the money keep being printed?
Where does it end......
Here’s a question for you. It does kinda make you wonder that if the government can suddenly spend all this money (rightly so) why did they spend all those years deliberately cutting/underfunding so much? Why for example couldn’t they make a concerted effort into helping homeless people or the disabled?
tux said:
Here’s a question for you. It does kinda make you wonder that if the government can suddenly spend all this money (rightly so) why did they spend all those years deliberately cutting/underfunding so much? Why for example couldn’t they make a concerted effort into helping homeless people or the disabled?
It is amazing what you can do when you are looking down the barrel of a gun !Piha said:
Care to expand why you think not? And how the books will be balanced?
I have to be totally honest and say I can not see (or understand) how we get back to anything resembling what we had after such a huge shift in financial ideology. With no firm exit date from the CV-19 crisis how long will the money keep being printed?
Where does it end......
I can totally understand why people say that but we have been here before during ww2 and over a long period the economy will recover and gradually inflation will make the debt taken on now look small. I have to be totally honest and say I can not see (or understand) how we get back to anything resembling what we had after such a huge shift in financial ideology. With no firm exit date from the CV-19 crisis how long will the money keep being printed?
Where does it end......
The real risk is to globalisation and international relations I think.
tux said:
Here’s a question for you. It does kinda make you wonder that if the government can suddenly spend all this money (rightly so) why did they spend all those years deliberately cutting/underfunding so much? Why for example couldn’t they make a concerted effort into helping homeless people or the disabled?
Glued to ideologyThe basic premise of this thread is false: government debt isn't like a credit card debt, it's more like a mortgage in a housing market that never sees a crash.
Or a successful company borrowing to invest in a new branch to sell its products into a new market.
It can essentially pay itself off by generating economic growth which increases the government's income, via their tax take.
Or a successful company borrowing to invest in a new branch to sell its products into a new market.
It can essentially pay itself off by generating economic growth which increases the government's income, via their tax take.
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