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?

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.

Corky wrote: ↑

Tue Mar 10, 2020 3:53 pm

It's all Adam Smiths fault.

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.

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.

Tribesmen wrote: ↑

Tue Mar 10, 2020 7:44 pm

Jezzzzzzzzzzzzzzzz TT hell of a pension you get from the UK

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!

JohnMac wrote: ↑

Tue Mar 10, 2020 9:19 pm

And what about darning socks?