Reader’s Question: Why does printing money cause inflation? Does this always occur? Summary If the money supply increases faster than output then, ceteris paribus, inflation will occur. If a government prints extra money, households will have more cash and more money to spend on goods. But, if the amount of goods stays the same, the …
In May 2010, the Conservative coalition entered government against a backdrop of the great financial crisis, which had sent the pound tumbling, a deep recession and record government deficits. Cameron and Osborne blamed the crisis on high debt and wasted no time in imposing austerity measures on the economy. Yet, 14 years after the start …
Why The Russian Economy Defied Predictions of CollapseWatch this video on YouTube Following the invasion of Ukraine in March 2022, the Western powers introduced unprecedented levels of sanctions, freezing $300bn of Russian assets, the Ruble collapsed, inflation rose, and the Russian economy headed into recession. It seemed the perfect storm to create deep economic problems. …
New Labour – The Economic Impact of Blair and BrownWatch this video on YouTube By 2007, New Labour had presided over the longest period of economic growth in the post-war period. It was the goldilocks economy with low inflation, low unemployment and an impressive rise in spending on the NHS and education. But, the devastating …
Rail Privatisation Failure – Why we pay more for TrainsWatch this video on YouTube In the Victorian age, the UK led the world in building railways, it was an invention that changed the world. But, by the 1980s, the state owned British Railways was the butt of jokes, stale sandwiches, declining passengers and closed lines. …
Since the financial crisis of 2009, the UK economy has experienced a real decline in economic fortunes. Last month, we entered a recession, but real GDP per capita has been stagnating for a decade. This poor economic performance is creating its own spiral of problems- rising debt, low investment and creaking public services. Recent budgets …
After a sharp increase in the 1980s, income inequality appears to have slightly improved in recent years. However, this general measure of inequality fails to capture many of the increasing divides across the country. Whilst the income share of the top 1% has grown, the poorest 10% have faced falling living standards in a cost-of-living …
In 2010, the UK hit at a record peace time deficit. The incoming government sought to reduce debt through austerity. The Real Reason Britain is Broke – A Doom Loop of DebtWatch this video on YouTube In 2010, the UK hit at a record peace time deficit. The incoming government sought to reduce debt …