Economics

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jackmiggins
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Economics

Post by jackmiggins » Tue Mar 10, 2020 12:21 pm

Oil price down - bad news. Oil price up - bad news! Always thought ‘Economics’ as a subject (art? Science?) is tripe. Can anyone elucidate on why economists actually earn a living? Personally think that Stocks, shares etc are a game played by the super rich & World events are merely ‘moulded’ into their ‘economist’s’ educated opinions to make massive profits. Of course, I’m not an expert, but am sure that some on here can enlighten me?
This user liked this post: IanMcL

fatboy47
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Re: Economics

Post by fatboy47 » Tue Mar 10, 2020 12:27 pm

poor working class folk flogging their guts out in a factory or retail outlet etc...for barely a lving wage..well, if they get a raise on above the level of inflation..thats kinda bad apparently..its why the current government..despite brexit, will ensure a continued supply of cheap labour from the third world to keep our own folk on the breadlne.

a worker on the breadline is far easier to control.

jackmiggins
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Re: Economics

Post by jackmiggins » Tue Mar 10, 2020 12:32 pm

Precisely - the real economic world operates in the stratosphere, way out of reach from we plebs.

Tricky Trevor
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Re: Economics

Post by Tricky Trevor » Tue Mar 10, 2020 12:52 pm

Living in Ireland on UK pensions we are constantly tracking sterling/euro rates. They go up and down for no rhyme or reason. Yet moneymen all around the world make money on it up or down. We have got so good at following it I could make money moving it back and forward myself but they’d call me out for it and I’d get taxed. We get a call from the bank every time we transfer more than £10k across. Treating us like money launderers.

Spiral
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Re: Economics

Post by Spiral » Tue Mar 10, 2020 2:48 pm

"I like saving money. Will raising baseline interest rates to 10% destroy the economy?"
"I don't know, mate. Let's try it out and see what happens!"

...said nobody ever.

Whether employed by the private sector, as researchers, or as govt advisors, that's why economists are helpful. They're trained on the workings of economies and markets, and so can help understand and steer it. For a start, the entire pension industry exists because of the financial markets, so it's not just the absurdly wealthy who have skin in the game. It doesn't take a great imagination to think what would happen if nobody understood the dynamics of the global economy. Interesting titbit I always come back to: David Cameron prepared a speech encouraging everyone to pay off their credit card debt in an attempt to project 'fiscal responsibility'. His advisors advised him that if everyone followed his advice it would destroy the economy of the United Kingdom. He took this part out of his speech. All the virtue in the world and all the effort exerted to cultivate political capital won't change market logic.

On oil price fluctuations, the reasons why a rise and a fall in price can both be "bad" (I'd say 'newsworthy') is because a primary concern for economists and governments is price stability, and any interruption to that stability has ripple effects which might require action - especially in the case of oil, which underpins so much of the global economy as a sort of baseline measure. I'd make an argument that price stability is a concern for government on a par with homeland security.

IanMcL
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Re: Economics

Post by IanMcL » Tue Mar 10, 2020 2:55 pm

jackmiggins wrote:
Tue Mar 10, 2020 12:21 pm
Oil price down - bad news. Oil price up - bad news! Always thought ‘Economics’ as a subject (art? Science?) is tripe. Can anyone elucidate on why economists actually earn a living? Personally think that Stocks, shares etc are a game played by the super rich & World events are merely ‘moulded’ into their ‘economist’s’ educated opinions to make massive profits. Of course, I’m not an expert, but am sure that some on here can enlighten me?
Betting for the rich if you lose, don't worry, you can start again and usually keep your assets from the past.

houseboy
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Re: Economics

Post by houseboy » Tue Mar 10, 2020 3:21 pm

Spiral wrote:
Tue Mar 10, 2020 2:48 pm
"I like saving money. Will raising baseline interest rates to 10% destroy the economy?"
"I don't know, mate. Let's try it out and see what happens!"

...said nobody ever.

Whether employed by the private sector, as researchers, or as govt advisors, that's why economists are helpful. They're trained on the workings of economies and markets, and so can help understand and steer it. For a start, the entire pension industry exists because of the financial markets, so it's not just the absurdly wealthy who have skin in the game. It doesn't take a great imagination to think what would happen if nobody understood the dynamics of the global economy. Interesting titbit I always come back to: David Cameron prepared a speech encouraging everyone to pay off their credit card debt in an attempt to project 'fiscal responsibility'. His advisors advised him that if everyone followed his advice it would destroy the economy of the United Kingdom. He took this part out of his speech. All the virtue in the world and all the effort exerted to cultivate political capital won't change market logic.

On oil price fluctuations, the reasons why a rise and a fall in price can both be "bad" (I'd say 'newsworthy') is because a primary concern for economists and governments is price stability, and any interruption to that stability has ripple effects which might require action - especially in the case of oil, which underpins so much of the global economy as a sort of baseline measure. I'd make an argument that price stability is a concern for government on a par with homeland security.
Could I just ask bud (and it's a genuine question not a put down) - how do you know what Cameron OMMITTED from a speech if he didn't say it? Honestly interested.

Spiral
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Re: Economics

Post by Spiral » Tue Mar 10, 2020 3:31 pm

Speeches are often pre-briefed. It's why you'll read a headline like "PM to announce such and such a thing". Distributing a speech to the media in advance of the speech acts as a tease and draws more attention. It's a basic part of any politician's media strategy. If you're trying to communicate a message, you want to make sure folks are listening. I believe in this specific case it was a party conference speech, too.

Corky
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Re: Economics

Post by Corky » Tue Mar 10, 2020 3:53 pm

It's all Adam Smiths fault.

CleggHall
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Re: Economics

Post by CleggHall » Tue Mar 10, 2020 4:05 pm

Falling oil prices - a worry, heading for possible world recession or low growth period but good news for motorists, farmers, industrialists and all consumers/users of oil. Deflationary.

Rising oil prices - may indicate a boom in world output as industrialists/ manufacturers (oil users) bid up its price prior to increasing their output. Poor news for motorists, central heating users and consumers who will all eventually face higher prices. Inflationary.

Economics at its simplest!

levraiclaret
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Re: Economics

Post by levraiclaret » Tue Mar 10, 2020 7:36 pm

Corky wrote:
Tue Mar 10, 2020 3:53 pm
It's all Adam Smiths fault.
Yeh it was handball.

bfcmik
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Re: Economics

Post by bfcmik » Tue Mar 10, 2020 7:40 pm

Falling oil prices may lead to falling pump prices (not as guaranteed as pump price rising when the oil price increases). Pump price falling, however welcome to the person on the street, leads to a reduction in the tax & VAT take which affects government spending plans as they have less revenue to borrow against.

Rising oil prices almost invariably become rising pump prices which means the government get a boost to tax and VAT revenues but leaves the average person with less money to spend on other taxable goods and a degree of public dissatisfaction with government performance.

Tribesmen
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Re: Economics

Post by Tribesmen » Tue Mar 10, 2020 7:44 pm

Tricky Trevor wrote:
Tue Mar 10, 2020 12:52 pm
Living in Ireland on UK pensions we are constantly tracking sterling/euro rates. They go up and down for no rhyme or reason. Yet moneymen all around the world make money on it up or down. We have got so good at following it I could make money moving it back and forward myself but they’d call me out for it and I’d get taxed. We get a call from the bank every time we transfer more than £10k across. Treating us like money launderers.
Jezzzzzzzzzzzzzzzz TT hell of a pension you get from the UK :D

Gordaleman
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Re: Economics

Post by Gordaleman » Tue Mar 10, 2020 7:48 pm

fatboy47 wrote:
Tue Mar 10, 2020 12:27 pm
poor working class folk flogging their guts out in a factory or retail outlet etc...for barely a lving wage..well, if they get a raise on above the level of inflation..thats kinda bad apparently..its why the current government..despite brexit, will ensure a continued supply of cheap labour from the third world to keep our own folk on the breadlne.

a worker on the breadline is far easier to control.
Baffles me why people keep voting to keep the super rich in power then.

Claret32yrs
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Re: Economics

Post by Claret32yrs » Tue Mar 10, 2020 7:49 pm

When I went to secondary school. I was a bit wet behind the ears. Had options the first two years. Thought Home Economics was home budgeting and finance. Spent two f*cking years doing needlework and baking cakes! Buggered up my education for two years but I can make a marvellous jam sponge!

Tricky Trevor
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Re: Economics

Post by Tricky Trevor » Tue Mar 10, 2020 7:51 pm

Tribesmen wrote:
Tue Mar 10, 2020 7:44 pm
Jezzzzzzzzzzzzzzzz TT hell of a pension you get from the UK :D
I wish. We save it up and just hit it when the rate is good. Sometimes it's a long save.

JohnMac
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Re: Economics

Post by JohnMac » Tue Mar 10, 2020 9:19 pm

Claret32yrs wrote:
Tue Mar 10, 2020 7:49 pm
When I went to secondary school. I was a bit wet behind the ears. Had options the first two years. Thought Home Economics was home budgeting and finance. Spent two f*cking years doing needlework and baking cakes! Buggered up my education for two years but I can make a marvellous jam sponge!
And what about darning socks? :lol:

atlantalad
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Re: Economics

Post by atlantalad » Wed Mar 11, 2020 1:47 am

Economics- predictions.

This will scare you, Putin and his 3D chess end game.

https://www.youtube.com/watch?v=hw4GGrYTHog

Claret32yrs
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Re: Economics

Post by Claret32yrs » Wed Mar 11, 2020 5:42 am

JohnMac wrote:
Tue Mar 10, 2020 9:19 pm
And what about darning socks? :lol:
Not my forte :lol:

Tricky Trevor
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Re: Economics

Post by Tricky Trevor » Mon Mar 16, 2020 8:18 am

A lot will be glad they aren’t going to Europe this Summer. £ down 10cent in a month.
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