Everything feels very broken. Nobody wants to work. Even people who have been asked to come to the office are screwing off at least 1-2 days of the week and no one is able to do a thing.
A massive group of people are essentially walking around with zero faith in their government. If they’re not hostile, they’re apathetic.
Money is still completely wonky. All older economic indicators have stopped meaning anything because money has stopped meaning all that much.
Healthcare feels even more broken than before. You’ve got more deaths than ever and chronic sufferers are the worst hit.
I feel very pessimistic when I look at the world right now. Everything feels very chaotic and I don’t see a way out of the disorder.
The world was just very different pre-2020. It's all just gone phone call nonsense. Everyone is slacking off, productivity is through the floor, endless queues for everything, shortages, public transport use way down, etc.
I haven't even had a proper full time job since then because as far as I can tell literally 0 work from office jobs exist any more. They just went extinct.
The idea of even using an indicator like inflation to capture this is weird because there's been a qualitiative, not quantitative, change in what life is. It's not just "before but a different % of things".
True since at least 1894 https://twitter.com/stephenlautens/status/155123736437847654...
It's just weird.
But yes... Lockdowns are major reason of so called "inflation". Caused by few corporates. But I'm not sure if majority reflects that.
It would not be a surprise if there are policies announced to further tax the young to give 'Granny' more free money off her bills (the existing winter fuel allowance is not means tested), and further free transport round major cities (over 60s travel London free). Then there's the echoes of the lockdown nightmare, mass punishment of the young so the old could feel safer.
The response to any complaints about this generational vampirism is always of course; "you'll be old one day". Inheritance is rare to appear, all too often you hear that Granny has given it all to the local cat sanctuary. Patience is running thin and apathy is higher than ever.
If you're young, this country actively punishes and steals from you, then tells you to stop complaining. Finding hope in anyone under 60 is a tough task.
And all you get is £170 a week pension if you are lucky.
So the social security equivalent in the UK comes to about 28% of the salary of most UK workers.
It does only kick in if you are paid more than £240 a week for the employee part and £170 for the employer part, and does taper off for the employee to 3.5% for income above £4300 a month but for all intents and purposes this hold true for most workers.
My point is that even with a comfortable salary, I will feel ~£600/month in energy. I can only fear for people that earn much less than me.
George Orwell, 1984.
And so a chunk of the masses vacillate between "I believe virtually everything I read, and I think that is what makes me more of a selective human than someone who doesn't believe anything."[0] and "Game over man, Game Over."[1]
[0] This is Spinal Tap
[1] Aliens
Seems much of Europe is still chained to LNG, and that demand is even wreaking havoc in countries which have been previously quite self-sustained, or really don't use LNG much themselves - with Norway being a good example.
Sunak thinks taxing businesses and the well off so that we can fund support to the less well off is the right approach.
Labour and Lib Dems are further left in that they want to cut off any growth in electricity prices and maybe nationalise electricity firms.
The Tories are so out of ideas and people with any talent or charisma, they think these two are the best they have to offer. Both have literally nothing to address this except doubling down on fantasy economics that we can see hasn't worked up to this point.
(alternate link)
- Investment bank Citigroup forecasts UK inflation will hit 18.6 per cent in January 2023 — the highest peak in almost half a century — because of soaring wholesale gas prices.
- The bank predicted that the country’s retail energy price cap — which limits how much the average household pays for heating and electricity — would be raised to £4,567 in January and then £5,816 in April (approx $6880, €6850) compared with the current level of £1,971 a year. It added that the shifts would lead to inflation “entering the stratosphere”.
- UK and European wholesale natural gas prices are already trading at close to 10 times normal levels and other forecasters have also raised their inflation predictions.
- The energy regulator Ofgem will on Friday (26 Aug) announce the energy price cap for the period between October and January, which most analysts expect to rise to more than £3,500 for a household with average usage of energy — an increase of 75 per cent on current levels.
Related article from Reuters: Europe's efforts to shield households from soaring energy costs https://www.reuters.com/business/energy/europes-efforts-shie...
6K seems reasonable for a family's annual energy bill. Frankly, it seems on the lower end for such a climate. What's really absurd in the UK is property prices. You'd be able to afford all the energy you desire if you weren't paying 10x what it should cost for housing.
Are you really suggesting that housing costs should average around £1400 per year (about one tenth the average annual rent [1]), but energy costs more than 4 times that amount are reasonable?
[0] https://www.ons.gov.uk/peoplepopulationandcommunity/personal...
Relative to wages in the UK, absolutely. The working class is getting absolutely fleeced over there.
> I strongly disagree that nearly 20% of the median household income
Same thing here, there's two sides to every equation. The UK has to import almost all of it's energy, importing is expensive.
It seems to me, global energy demands are outstripping supply, and energy is going to become a permanently larger portion of everyone's budget. The way of life we've enjoyed the last 70+ years in the western world, that life is quickly changing.
A potential new prime minister trying to defend profits of energy companies recently on TV just shows you the Modus operandi of the political class.
It might push people to riots in the streets.
https://www.google.com/search?q=UK+inflation+to+hit+18.6%25+...
What could possibly go wrong?
wait until you learn how much lower people are getting paid now that they depend on a work visa. hint: a lot less than europeans coming in pre-brexit.
Childcare and retail come to mind if you like examples.
The people at the top today are incompetent and lack principles. No better than the corrupt dictators of uncivilized nations. I almost get satisfaction seeing them driving that sinking ship all the way to the seafloor. That's the most meritocratic thing I've seen in a decade.
1 Renewables: The solution exists already but no gov't (in particular the UK) is implementing it: https://en.m.wikipedia.org/wiki/100%25_renewable_energy
2 The UK gov't rather is arresting people demonstrating for housing insulation. This is probably the dumbest thing a gov't can do, since insulation is a "bipartisan" issue and everybody would profit from it.
3 On top of this the UK is on the verge of picking a fight with the EU and risking a trade war by its illegal and unilateral changes to the Brexit agreement. NI political issues aside, no sane gov't would do that at this point in time.
The UK govt has done better than most on renewables in the past decade. Wind energy in particular. In 2020, wind power supplied 24.8% of all UK electricity, and this will continue to increase as major new wind farms - some of the largest in the world - come online in the coming years:
https://en.wikipedia.org/wiki/Wind_power_in_the_United_Kingd...
The UK grid should begin to have periods of 100% fossil-free generation by 2025:
https://www.nationalgrideso.com/news/great-britain-track-per...
The UK doesn't appear anywhere in the ranking on the Wikipedia link of countries with >90% electricity from renewables.
You're last link also pertains to electricity only BTW (you make it sound like all energy is considered) and the UK aims for 2025 to have "periods" of fossil-free electricity generation, while other countries do that already today and not just for "periods".
I'm sorry, but the UK sucks.
My only consolation to you is that a number of other western countries also suck.
We are actually back in the UK this week visiting family who asked if we miss living here and my wife and I just looked at each other and said "nope!" in unison. It is hard to explain it in a short post here but the UK just doesn't feel "like home" to me anymore.
I am not saying [redacted] is perfect. But our quality of life is much higher in [redacted] than it was in the UK and we are both very happy we followed through and moved.
(Edit: I probably shouldn't have made this comment. Let's just say I am not disagreeing with you.)
I often make comments I feel I need to, and later succumb to the stupid social network reaction of "oh no 3 people downvoted it, surely that means 3 people hate me and no one agrees".
Sometimes things need to be said regardless.
I think we are heading for a tipping point. Public services are probably already past a point where staff quitting is piling more work on those left, resulting in more people quitting. I suspect there will be a terminal snowball which guts the NHS at least and leaves it unable to function (by design of the Tories, of course).
I suspect the brain drain will be similar. Young people don't want to live in some tax haven, they want a country that functions. Brexit has made it harder, but people will find a way eventually. People were talking Canada, the Netherlands, etc... (Notably for here, very much not the US which is seen as having all of the same problems the UK has).
I would say the most likely outcome is a further diminishing of the UKs international importance, together with some risk of Scotland breaking apart.
* being reliant on gas for both heat and power
* a collapsing pound driving prices higher in local currency
* no supply guarantee since we left the EU (we are now "at the end of the pipe")
* some of the most energy inefficient housing in Europe after decades of not investing or taking climate change seriously
* very high taxes, very low spending on poor people and a big deficit (so we have no room to bail out users)
* no domestic storage so we are just constantly exposed to spot prices
And that's just the issue around Russian gas. We also have dozens of other economic chickens coming home to roost...
https://www.statista.com/statistics/225698/monthly-inflation...
I'd go to the US or Canada happily. I'd go to the EU. Singapore has a company office and Australia is great from what I saw on holiday.
I have a chat scheduled with my boss in Sept, I might start sounding out a transfer.
38F = 3½C
57F = 14C
Not sure why you used Farenheit, but I live in the north too and it's colder and warmer than that. Currently 22C (61F) here in rainy Manchester.
First, I'm not in Manchester, considerably more northern, so why try to compare?
Secondly, Manchester's average temperature in August is close to 16C (https://en.wikipedia.org/wiki/Manchester#Climate).
Thirdly what is strange about the temperature on a given day being higher than the average?
People from Europe likely already have a vague idea of what the temp is like in northern parts of it, and 45% of HN is from US according to https://news.ycombinator.com/item?id=3298905
The political unity so quickly after the start of the war was unexpected (and admirable).
Ten years from now, Europeans will drive electric (if they'll drive at all), solar panels will be everywhere, and the continued flex-work-from-home revolution will have created an enormous amount of extra time for everybody. They'll be comfy in their sustainable homes and healthy cities, those few years of inflation a memory only.
It's a tough transition, that eventually every country needs to make, but Europe will be ahead of the rest of the world by miles.
And in the US, 10 years from now, the next gas price spike will again have people start to whine (yet again), we'll still be coughing on fumes when dropping our kids of at their school, the energy grid will continue to be unreliable in face of every minor or major natural disaster, and we'll wonder why nothing really materially has changed (and then blame the government).
Most cars sold in Europe aren't electric: only 13%. Average car life in Europe is 11 years or something like that. So, no, ten years from now Europeans won't be all driving electric, far from it. Also something like 2/3rd of all europeans live in suburbs or rural: so, yes, they'll still be driving (or using horses). People enjoying the public transports in cities are a minority.
It was there for few weeks. But soon everyone was blaming others for the situation and not doing enough.
We are in this shit because of Putins war (75% of the blame), Europes general hatred of having a military (15%, say), and finaly Biden not being willing to use military force directly to stop Russia.
We can't do anything about the first, it will take decades to solve the second, but if Biden was willing to take of the gloves, Donbas and Crimera + a good chunk of Southern Russia could be in Ukranian hands come spring.
Then we could open up for their gas fields and end the problem.
Russia will try to push the narrative that this will mean a direct confrontation between them and NATO, but having seen how they do in Ukraine, this hardly matters.
Yes Russia have nukes, and some of their rockets no doubt work, but this scenarios does not trigger their criteria for use of nukes.
Or investment into basic insulation and house upgrades. Single glazing and simple brick is still very common in the UK. Many houses could use much less energy if they didn't lose lots of it through the windows and ceilings in the first place.
It just needs to implemented!
Just imagine how much the politicians suck: Science has given them the solution for the energy problem, science has showed how to even make it economically, and has done that already years ago. All politics would have to do is implemented. But they cannot even do that ...
Right.
And this has a very important implication. For home owners who're currently deciding which heating technology to replace an oil or gas furnace with.
Biomass and Biogas will be needed urgently in the near future to supply powerplants (of utility order of magnitude) that can then stabilize the electrical grid against the fluctuations that are going to be caused by more and more wind and solar power.
The way I see it - as enticing as it may be - to replace an oil/gas furnace with a wood pellet powered one in our current situation is the wrong choice in the long-term.
The prices for electricity will rise further, yes, but the crucial role of biomass and biogas as one means to stabilize the grid will IMO lead to even greater price increases for the latter.
The solutions are, in part:
- National gas storage reserve (to buffet price/supply spikes somewhat).
- Expansion of green energy.
- Programs to reduce usage (e.g. home and business improvements).
Luckily for the UK extremely efficient heat pump based heating/cooling solutions that offer greater than 100% efficiency exist[0]. It is just a matter of the political will to covert away from gas to electricity and then retrofitting homes.
Like many European countries, it is usual to heat German homes with gas boilers. You could (and if we don't want even worse climate change, must) replace those with electrical heating, most likely heat pumps with resistive backup. A heat pump doesn't care whether the electricity powering it is from a solar panel or a wind farm or what.
There MAY be a few cases where alternatives are harder to find (where you need the chemistry of the gas rather than the energy), but that is a pretty small percentage overall.
But to produce energy at prices that are competitive to typical prices for NG is pretty hard without either coal or cost efficient nuclear, at least in colder climates. Solar is perhaps close to becoming cheaper in sunny, dry areas further south, but wind power looks like a poor alternative at the scale needed, since it's so unreliable. Maybe one day batteries or other storage will be cheap enough that we can store wind power for a week or more, but for now, it looks like the only low-CO2 option is nuclear.
What do you think the government should do?
At some point if the rich continue to demand sacrifice of the poor to prop up their gathering of wealth, it'll be guillotines in the streets. Historically Britain's upper class has been sensible at offering compromise to avoid extreme change, but it appears the current crop think their control of the media is enough to keep the population placid while they suffer.
So far, they appear to have been right. Who knows how long that'll continue as things get significantly harder for the average person.
It does mean we customers will endure higher energy costs for longer - but it will greatly soften the impact on the massive spikes we are set to see over the next 6+ months. It will also have the knock on effect of reducing inflationary pressures, making the need for rapid interest rate rises less likely, reducing borrowing costs.
Look again at what can be done to further enhance and accelerate investments in alternative energy production and storage. This includes looking at tackling planning regulations which so often tie up critical infrastructure projects in the UK for years (sometimes decades), too much nimbyism. Often by peeps who moved next to an existing facility (be it a windfarm, a nuclear plant, etc.) and then complain when it's suggested the plant be extended ... shocker ... who'd have thought that could happen! Invest in a massive, nation wide home insulation scheme - properly invest, not the silly little schemes they've tried so far. Which were badly thought out and badly implemented, and probably full of corruption and wastage.
At the same time continue (and back-date) the "windfall" tax on exploration and production - this wasn't "profit", this was "free money". The companies did not generate this income from improved working practices, efficiency drives, deployment of new technologies, etc. etc. - it was in nearly all senses a windfall. The oil majors are unlikely to invest it ("we don't even know what to do with all this income!" ...), and even if they did it will have absolutely no impact on the lives of UK citizens for years and years - the problem exists now, it needs a solution now.
The whole situation is made more infuriating given the UK produces 50% (+/-) of its own gas. But thanks to our exposure to the prevailing market and the ease of transport to the continent we are suffering as much (heck, more than) many other nations in Europe.
>The investment bank predicted that the country’s retail energy price cap — which limits how much households pay for heating and electricity — would be raised to £4,567 in January and then £5,816 in April, compared with the current level of £1,971 a year.... Nabarro said Citi’s new forecasts had taken account of a 25 per cent increase in wholesale gas prices last week and a 7 per cent rise in wholesale electricity prices.
No price controls can account for the fact that energy prices are up a lot globally. Pretending they're not up and keeping the price cap in place is worse. First it doesn't discourage energy usage. That's a big purpose of prices in a market economy. Second, when something is priced below market price it inevitably leads to shortages. This will have to be addressed through some kind of political action that will be sub-optimal. Rather than a young person seeing higher energy prices and adjusting their AC, while an old person may choose to pay the higher price, you'll see ham-fisted conservation measures.
If you're against having the customer's price reflect more closely the market price, you have to propose an alternative. Do you want people to use less? If so, how do you do that? Or do you want people to continue using the same, pretend the high prices don't exist and just pay for it through taxes? Either way, the money will have to come from somewhere or rationing will have to take place. There's no free lunch
We already don’t have AC in summers which are growing more and more extreme (regularly over 90F, and sometimes over 100F) - there’s nothing there to turn off.
Edit: Big power retail companies in the UK are making record profits, and so is generation.
Tax that aggressively to start with.
Heat pumps would be better, but there is already an insane queue for those.
Sure, but how would these energy companies fancy being under the thumb of Putin.
If they want to benefit from the spoils of free markets with consumers who haven't died from covid then they must pay their fair share to maintain them. So whether it's a cap on the prices they can make, or a tax on their profits. Doesn't really matter. The burden cannot be met only by energy consumers.
From Reuters: "France has committed to capping an increase on regulated electricity costs at 4%. To help do this the government has ordered utility EDF (EDF.PA), which is 80% state owned, to sell more cheap nuclear power to rivals"
(Source: https://www.reuters.com/business/energy/europes-efforts-shie...)
I could foresee riots again like the 2010 ones but I doubt it'd do to much change other than lead to some imprisoned people and property damage.
So, unlike, say, the poll tax riots i doubt itll lead to any meaningful British/English political changes.
It may add fuel to Northern Ireland joining Ireland/Scottish independence though.
This is the world on modern monetary theory. Not even once.
Hyperinflation and energy crisis are here.
[1]: https://en.wikipedia.org/wiki/English_Civil_War#Whig_and_Mar...
Edit: For context, the parent previously stated that this perhaps may become the first real revolution in Britain.
- Isolate their house and/or live in a small, well isolated apartment
- Buy solar panels and a heatpump.
- Save gas by wearing an extra sweater and setting the thermostat a bit lower.
are affected far less by this massive inflation.
Of course, for the 37% in the UK that do not own a house (probably because they cannot afford it) and/or convince their landlord to isolate their property, it is unjust.
Since more people own their house than rent it seems that this particular inflation wave makes the economy more just rather than less just, given that the biggest polluters are hit the the hardest.
If the house was isolated that might actually make heat loss worse, because it suggests other homes are quite distant. For example my sister's house is an "end terrace" so one wall of it won't lose much heat since the other side is somebody else's house and no doubt they also keep warm in the winter. In contrast my mother's house is perched up on a hill, I wouldn't quite describe it as "isolated" but certainly she's going to spend a lot of money heating it.
How many of those home owners do you think have tens of thousands of pounds just laying around that they can spend on those upgrades? (and that's after taking in to consideration the grants available)
Standard hedonism of the typical climate change deniers here. Go on, people, nothing to see ...
My point is that, in the past decade, the UK has transitioned to renewables faster than any other major industrialised nation.
As recently as 2012, nearly 45% of UK electricity still came from coal. This has been cut to around 1% in 2022, and all remaining coal-fired power stations will be closed completely by 2025.
Obviously there is still much more to do, but the UK compares favourably here to, for example, the USA or Germany.
My impression of the readership is that it depends on the time of day. When I was in Vietnam, I would wake up to US centric posts full of comments. When I wake up early on the East Coast of the US (~6:30 am) I see more comments from Europe/UK. By mid afternoon, most of the posters seem to be from the US or at least the Americas.
I base this on about 5 years of daily HN reading. I infer the posters’ locations from spelling, grammar, but most often their own admission. Nonetheless, this is just anecdata.
European Suburb != American suburb. I live in the suburbs of Paris, and i have two regular train lines (as in 15 minutes cadence in off peak times) within walking distance. The vast majority of commuters in and around Paris use public transit, even when they live in small towns of a few hundred/thousand inhabitants (because even those tend to have train stations). Car trips still exist, but there are massive new projects to improve public transit even more (multiple hundreds of km of new metro lines in the suburbs, multiple new tram lines in the suburbs, etc.).
(Yes, I mean the Republicans.)
Western Europe, we'll see. Germany seems the most likely to crack with their appeasement bullshit and shameless ex-politicians. Fingers crossed they don't.
It's bad in the UK, to imagine it's the worst in the UK vs Europe is to show your ignorance.
Also where the hell can you lease cavity wall insulation from? And what happens if you stop paying, do they come round and suck it back out of the walls?
https://www.bbc.co.uk/news/business-62382624
Not from any particular clerverness. Or increase in productivity. Purely because of abnormal market conditions due to a war waged by a dictator they have collaborated with for the last 20 odd years.
Also, that article doesn't make sense to me. What stopped the prices rising before?
Only a fool believes a direct confrontation between Russia and NATO/US is a good outcome or would improve the situation. Also let's not fall into the trap of believing propaganda about military performance from either side, it will take years for an honest assessment to come out.
>Number one is the situation, when Russia is struck by a nuclear missile. The second case is any use of other nuclear weapons against Russia or its allies," Medvedev said Saturday, according to The Guardian. "The third is an attack on a critical infrastructure that will have paralyzed our nuclear deterrent forces. And the fourth case is when an act of aggression is committed against Russia and its allies, which jeopardized the existence of the country itself, even without the use of nuclear weapons, that is, with the use of conventional weapons."
https://www.newsweek.com/russia-lists-justifications-use-nuc...
If anything, the UK is at the head of the pipe with regards to European LNG imports: https://www.bloomberg.com/news/articles/2022-04-26/britain-n...
I just hope that both sides are sensible: Europe is relying on UK LNG terminals to import gas; the UK is relying on European storage facilities.
Personally a well paid individual no dependants I find the Tory focus on cutting taxes ridiculous but I'm aware I'm ignorant of how we compare to other countries.
I earn a (healthy) 95k. I pay 35% in NI and Income tax. I'd pay another 9% in student loans if I wasn't lucky. So 44% total deductions
https://listentotaxman.com/?year=2022&taxregion=uk&age=0&tim...
In France I'd pay the exact same rate overall (95kGBP->112kEUR)
https://salaryaftertax.com/fr/salary-calculator
I think this sums up the UK: European style taxes, US Style public services.
Cynicism aside for a minute, I think we have a real issue in the UK with a diminishing tax base: fewer and fewer people contribute and they have to contribute more and more of their incomes and everyone gets less and less services.
Then, the electricity wholesale price on the open market becomes irrelevant. As long as their set a price that covers their actual costs for their own consumers they are fine and it is sustainable, and certainly does not require any debts since it does not actually cost anything (beyond the cost of buying the remaining 20% of EDF).
Rinse and Repeat ad infinitum
That isn’t a small percentage and those industries have an enormous knock on effect globally there is a reason why the UN put the shortage of chemical fertilizers as one of the top priorities.
Cheaper electricity won’t solve that problem and the gas prices must come down because otherwise food prices would sky rocket world wide and we will be at a severe risk of having famine in developing countries.
And whilst there are other alternatives to natural gas such as gasification which is popular in China that still requires biomass and countries like Germany cannot simply shift their production to gasification for both environmental and practical reasons.
This link describes how even the ammonia can be produced from hydrogen, which in turn can be produced from electricity (solar, nuclear, wind, take your pick):
https://www.freethink.com/environment/sustainable-fertilizer
Whilst all of these are possible it’s possible with a multi decade mega project style of planning.
On the contrary, we recognise that everyone has a duty to keep everyone else safe, which was especially true during the early pandemic times, when it seemed like it was quite dangerous and Americans ignored it and died in the tens of thousands.
It was when it was observed that we were not in it together that heads rolled.
And it looks like our observations panned out, as we do not have any lockdowns anymore and I don't know of anyone who is still getting sick in a bad way.
Over the last couple of decades, though, the electricity price in Germany seems to have risen sharply, even when not including the last year.
It seems to me that many of the energy related policies in many countries have been focusing way to much on symbolism, instead of minimizing the price while also limiting actual harm to the population and the environment as much as possible. And when the price of electricity doesn't come down, consumers want to use it for as few things as possible.
And the first step is to have a realistic plan to make electricity as cheap and abundant as possible, as soon as possible, while still minimizing pollution.
Also, every step helps. If we cut consumption in half, we halve the rate of global warming (at least). It's not like its all-or-nothing.
The largest gas provider in UK (British Gas) profits in millions of pounds:
2009 147
2010 226
2011 258
2012 291
2013 153
2014 96
2015 73
2016 43
2017 11
2018 8
2019 -5
2020 27
I couldn't find more recent data but please provide it if you have it. These are in millions of pounds. Suppose their profit jumped to 100 million pounds (4x the 2020 profits). Do you think 100 MILLION pounds would solve the problem? To put this in context, public sector fuel and energy expenditure in 2021 was 456 BILLION. And this is only public sector. Profits aren't even a rounding error.
https://www.statista.com/statistics/521474/centrica-energy-e...
https://www.statista.com/statistics/298887/united-kingdom-uk...
As an example for more recent information.
> British Gas Services & Solutions adjusted operating profit fell by 88% to £7m.
> The reversal of a £50m Covid-19 and industrial action impact from H1 2021 was partially offset by an increase in customer compensation following disappointing service levels over the past winter, continued higher absence rates earlier in the year, and increased workload, which we believe is a function of customers choosing to have non-urgent jobs they had been delaying during the Interim Results | Group Overview (continued) Centrica plc Interim Results for the six months ended 30 June 2022 7 Covid-19 pandemic completed. These temporary factors negatively impacted adjusted operating profit by approximately £25m
It's difficult to tease out, but the profit numbers are so tiny compared to the aggregate increase in price experienced by consumers. I think focusing on profit makes for good headlines but underlying issues are a lot bigger. Taking away the tiny sliver of profit these companies have will reduce innovation and new entrants while doing absolutely nothing to alleviate higher consumer prices.
https://www.centrica.com/media/5723/centrica-2022-interim-re...
Advocating for "market prices" doesn't necessarily mean letting everyone fend for themselves. You can provide grants/subsidies for the poor, while still keeping market prices so everyone is still incentivized to save as much energy as possible.
>Edit: Big power retail companies in the UK are making record profits, and so is generation.
Sounds like a great way to discourage investment and make future shortages even worse. The energy industry runs on a boom-bust cycle. Why bother investing for the boom years (ie. right now) when you know the government is going to seize all your profits?
[1] https://financialpost.com/investing/energy-firms-pay-record-...
2. the boom-bust cycle is exactly the reason not to reinvest all the surplus profits now. You might intuitively think that investing now will help lower oil prices, but it takes years for an oil project to be online so by the time the project is complete there will be an oil glut.
https://www.bp.com/content/dam/bp/business-sites/en/global/c...
That makes thermal chemical heating 20-50% efficient, thermal electric heating 10-30% and heat pumps 50-70% efficient (depending on where you draw the boundaries).
You could also draw the limit at reduced carnot efficiency rather than reversibility, in which case heat pumps can be close to 100%
See:
https://physics.stackexchange.com/questions/489467/can-a-hea...
https://dothemath.ucsd.edu/2012/06/heat-pumps-work-miracles/
I won't be further responding to this sub-topic, since it has nothing at all to do with the UK's inflation/energy prices. Plus frankly I feel like you're trying to confuse people rather than inform, I'd point people to the Department of Energy link above if they want to understand the benefit that modern heat pumps could offer to energy usage.
Efficiency as a concept doesn't go over 100% and just because confusing and misleading explanations are the norm doesn't mean they should continue.
NATO made a deliberate decision to bring Ukraine into the fold in 2019 and Russia reacted predictably, but not before giving us an opportunity to back down first: https://www.nytimes.com/2022/02/02/world/europe/us-nato-resp...
We dove into this knowing full well the dire energy risks that escalation posed to Europe and are now acting shocked that we didnt prepare.
Even now Stoltenburg's official line is basically "suck it up, Europe" which I assume means that NATO leadership is perfectly comfortable with the idea of a European economic disaster this winter.
The solutions you mentioned are all great in theory but the workable ones mostly all have a 5-10 year horizon and we have a problem now.
Whataboutism as a rationale for war escalation with a nuclear power is insane.
To consider reining in NATO expansion war to be equivalent to war crime apologetics is beyond absurd.
If we get to winter and the Russian economy fares better than ours (and at first glance it looks like it will) then a lot of people should be eating a lot of humble pie.
Alas I suspect theyll just call for escalation.
Alas, the world doesn't operate based on the moral principles you imply, but cold hard realpolitik. Actions have consequences in the great power game between nation states.
> And it was mind bogglingly stupid, as we can see a few months in, with the massive losses to their army and economy.
The Russian economy is doing fine, business with India and China is thriving. "Massive losses to their army" I believe is far from accurate. I'll be greatly surprised if at the end of this, Ukraine isn't economically destroyed, geographically devastated. Territories lost will remain lost, and the deaths of so many people will have been for nothing more than furthering the geopolitical and industrial interests of the main instigators.
But sadly yes, Europeans tend to have better English than the English.
I am very skeptical about any new taxes aiming for wealth distribution that are not very explicit about who should pay that tax.
The alternative, not taxing anyone much, has been tried: it gets us here, with public services collapsing and the country becoming less and less desirable to exist in. We are so far on the left of the Laffer curve it is laughable, even if we ignore the insanity of assuming that the value of having a society that functions isn't relevant.
Taxing rich folk more doesn't hurt poor people who don't pay those taxes.
So...tax those whose income is higher than Latty's income - 1 pound? I am sure you can afford it.
A new progressive tax regime requires a lot of research, consultations, political capitals, and most importantly, time. We don't have a lot of time right now.
We don't have a lot of time, that's a reason to start now rather than delaying the solution even further: people will suffer the longer we pretend we can have the country function as a funnel to the wealthy instead of a place for people to live.
Like in my brother’s government job, coming into office was a given. You could have serious career repercussions if you were slacking off.
Then the lockdown happened and work moved online. Everyone was slacking off, including the managers.
Now they’ve got in-office mandates again but some of the workers just don’t come in when they don’t fee like it and just log in from home. And no one seems to care or even mind.
Work has started feeling optional, not essential.
Maybe people were always "slacking off" at their jobs, they just had to work harder to hide it when people were in the office?
All that is to say is that it seemed like there are tons of people caught in a Bullshit Job situation where the job seems to be mainly trying to foist the work off on someone else. And I suspect that a lot of the work they're trying to find owners for is of highly questionable value in the first place.
This was long before the pandemic too, but it does seem like an awakening that other people had in pandemic times.
An alternative hypothesis is that a lot of time spent at work was bullshit (ie, unproductive) to start with - only many people have realised it now.
That sounds mostly like a good thing. Turns out that killing oneself for maximizing productivity wasn't a smart move, or even necessary for things to work ok.
The WFH thing is an example - people have started to treat going to work as some sort of optional annoyance.
During the 1860s the average work day was 16 hours, 311 days a year (4976).
During the 1920s the average work day was 8 hours, 243 days a year (1944, and productivity was up according to Henry Ford).
Most tech employers in China pre COVID, 10 hours a day, 297 days a year (2970).
Netherlands pre COVID, 5.8 hours a day, 234 days a year (1357).
US pre COVID, 6.9 hours a day, 239 days a year (1649).
Which one of the above examples cared the most about their jobs? Which was the most productive? In terms of business profit PPP? And wage PPP?
What I care about is that when I go to book a driving test, I can get one. I could do that pre-2020. I now can't.
This experience has been replicated across the economy.
Things have stopped working properly.
As far as I'm concerned your "PPP" is intellectual masturbation.
The population is unhappy because structural changes, not only limited to coronavirus, have meant that work doesn't pay.
What does your one job have to do with the general situation of the country? The issues with waiting lists are well publicised.
But that's exactly what it does. It's technically wrong, but communicates the understanding that you put 100% of electrical energy into it and get 250-450% of heating energy for your home out of it, as opposed to 100% with resistive heating. That some of the electrical energy comes out of the air outside or from the ground is irrelevant for most people.
What are absurd claims you reference?
And failing to communicate that the heat comes from elsewhere is condescending and leads to misunderstandings. It also fails to communicate that it's harder to move the heat when it is colder.
We have a perfectly valid term that does what yoh want without lying and without anti-education in the name of making it 'easier' which is coefficient of performance. You could even give it a different name to `void the scary word if you want, just don't call it efficiency because it's not.
But it isn't? For e.g. outside sheds (heated to 7°C) the COP can theoretically go up to 27. For solar panels, the highest theoretical efficiency is well below 100% and the bound isn't communicated.
> It also fails to communicate that it's harder to move the heat when it is colder.
For heating that's less the case, but the efficiency of e.g. solar panels also varies depending on the temperature. That's not exclusive for heat pumps (although much more extreme there).
> You could even give it a different name to `void the scary word if you want, just don't call it efficiency because it's not.
Few people know what Coefficient of Performance means. If I give choose a new name, even less people will understand it. I try to either put efficiency in quotation marks or explain the concept, but efficiency maps (in the sense of energy I care about in and out) pretty well.
I think anti-education is too harsh, I'd describe it more as a white lie. It's the same as saying Mac & Linux systems don't get malware or saying in school maths that you can't take the square root of -1.
Wrong, but correct enough for understanding the point and allowing useful reasoning.
Cut the Russian propaganda, NATO didn't expand to Ukraine. Ukraine, a sovereign country, wanted to join NATO, as is their every right. Denying Ukraine that right and excusing Russia's war crimes is pretty bad.
I'm explaining that war, gas crisis and 18% inflation was a predictable and deliberately chosen path that wasnt hard to avoid if we'd wanted to - simply by withdrawing an invitation.
You didnt want to avoid this scenario and consider withdrawing this invitation and "denying ukraine that right". I get that.
Yes, imagine what would have happened to Chechnya or Georgia if we had let them into NATO. No, that would have been an invitation to attack Ukraine, we should have let them in.
So we need to increase taxes there rather than income tax, and, I would personally argue, begin taxing wealth rather than just income when people have millions of pounds of assets.
Of course, I'd also argue we should have higher bands, once we fix the other problems and people are actually paying those rates. Paying say, 60% over a million pounds of income seems totally reasonable for me. You've already got a huge amount of income at that point taxed at a lower rate. You can afford to pay more, and should want to in order to get a better society to live in.
Britain had a 95% tax rate in the 1960s, as heard in "Taxman" by the Beatles "There's one for you, nineteen for me" [2].
[1] https://taxsummaries.pwc.com/denmark/individual/taxes-on-per...
[1] https://taxfoundation.org/historical-income-tax-rates-bracke...
That's just another way of saying that framing it as efficiency and disregarding that you're moving heat from a colder reservoir is incredibly misleading. Now the marketing department can put a giant "1300% efficient*" sticker on the dual use heat pump even though it's worse for heating to 24C. A heat pump is fundamentally moving heat. It's in the name. (Heat created + heat moved) / work in does not map to an intuitive or technical notion of efficiency, and framing it that way is encouraging a mental model which is not just quantitatively off, but fundamentally wrong. It's also a distinction that is subtle enough that it is very hard to see while you are confused. This is the almost worst kind communication failure (maybe just after using a dimensionless number for insulation, or using kilo for kibi) because it's so hard to correct. It leaks into other domains and destroys communication, allowing marketers to lie, and requiring a constant treadmill of new terms to fix.
> For solar panels, the highest theoretical efficiency is well below 100% and the bound isn't communicated.
The absolute bound is carnot efficiency, which is about 80% for coupling to the sun. This is close enough that out/in is fine. Additionally out/in is the correct model because you are converting energy not movng it. 'Simple silicon cells can't exceed about 35% efficiency because they need to pick whether to waste energy in blue light or ignore energy in infrared' is the only other piece of information needed to convert that to a quantitatively and physically complete model. You can even communicate it succinctly by drawing a rectangle on a black body diagram.
> saying in school maths that you can't take the square root of -1.
This is also anti-education and a far worse sin because it is crushing one of the few moments where mathematics might actually be learned in a maths class instead of rote algorithm memorization. A teacher should never ever say this. Far better to say something along the lines of "that's a question that doesn't have an answer when we're talking about numbers on the number line, come talk to me about it later". Or "it's really cool that you're thinking about that, here's the khan academy and wiki pages, write a letter telling me all about it instead of your normal homework". Or even "think about it and tell me what you think the answer should be".
If there's anything the Russian invasion of Ukraine isn't, it's realpolitik. Invading a country because "they aren't a real country and they should be ours" is as far as the cold practicality of realpolitik as possible. (Unless you choose to believe Russia's propaganda that it was all due to NATO's expansion, which even if true is even stupider - check Finland and Sweden which joined). Invading with the walking clown of an excuse of an army is also pretty far from practical considerations.
> The Russian economy is doing fine, business with India and China is thriving.
What are you basing this on? Have you checked their official interest rates, inflation rates (of course a bucket of salt is to be applied with those) and the warnings from the central bank governess? Not only is their economy not doing great, they are still yet to feel the effects of being cut off from industrial machinery and electronics they used to rely on. China and India can't replace all their planes, tractors, cars, trucks, phones, computers.
> "Massive losses to their army" I believe is far from accurate
Well thankfully people are actively working on this so we don't have to "believe" into anything. We have cold hard data from the ground in OSINT, compiled by volunteers such as Oryx. The fog of war is certainly obscuring things, but it's plainly obvious to see that Russian losses are massive in absolute and relative terms, in men and matériel. And the Russian army confirms that itself by the type of machines it fields (they've started reactivating obsolete tanks from the reserves) and it's desperate recruitment drives.
A) Finland and Sweden havent yet joined and may not.
B) There are no ethnic Russians in Finland or Sweden in need of protection from paramilitaries sporting swastika tattoos.
C) No border disputes either.
D) No Russian military bases.
E) It's highly defensible terrain (see the winter war) unlike Ukraine.
F) Want to know where the Nazis launched an assault on Russia and where they almost won due to Russia's extreme strategic vulnerability? Hint : it wasnt the Finnish border.
Just because you dont understand the realpolitik doesnt mean it isnt realpolitik.
After Russias constant rhetoric that Ukraine is only the first country on their “let’s genocide post soviet states” list their is 0 doubt that Finland and Sweden will finish the application.
> B) There are no ethnic Russians in Finland or Sweden in need of protection from paramilitaries sporting swastika tattoos.
The largest group of paramilitaries sporting swastikas and killing Russians in Ukraine is Russians from the neo nazi Wagner group so ironically if Russia left Ukraine there’d be less Russian deaths by (Russian) Nazis.
> C) No border disputes either.
Wasn’t any border disputes with Ukraine until they discovered vast natural resources in the Donbas region that would threaten Russia as a gas and oil provider to Europe. Then suddenly there were all kinds of problems then appeared over night and people who suspiciously looked like FSB and GRU officers started a civil war in Ukraine.
> E) It's highly defensible terrain (see the winter war) unlike Ukraine.
Either Ukraine is very defensible or Russia is terrible at war the losses so far have been staggering.
1,000 tanks and close to 45k soldiers either KIA or WIA is not “massive losses”?. The world thought Russia had years worth of tanks, turns out it only took 6 months before they started breaking out the the 4 man T62s.
Anyone that looks at the events with a modicum of objectivity should admit that it looks super-dire for Ukraine and the only thing Ukrainians can hope for given current trajectories is further devastation.
These are visually verified numbers, not even the numbers being claimed by Ukraine, if you want to improve them you can always point out duplicates and they will removed if they are actually duplicates. The real number is likely higher because not all losses will be photographed.
> Russian sources claim 7-10000 casualties (deaths and wounded)
Russian sources also claimed they weren't even going to invade the day before the invasion happened. Russian casualties are nearly guaranteed to be fake.
> Taking into account that Russia has neither mobilized nor deployed its actual army yet, and that most of the fighting is being done by locals and volunteers from the disputed regions, I fail to see the significance of "massive casualties" much less people state that "Ukraine is winning".
The VDV and Spetsnaz are both in Ukraine, are they not part of the 'actual army'?. In the least we know that the VDV has suffered massive losses, even just the videos of the gravestones in Russia should show you that Russias casualties are numbers are likely very fake.
If Ukraine isn't winning, why is Russias progress so slow?, Kyiv is less than 300km from the Russian and they still haven't made it there yet. Id consider being in month 6 of a '3 day special military operation' to be winning.
> Anyone that looks at the events with a modicum of objectivity should admit that it looks super-dire for Ukraine and the only thing Ukrainians can hope for given current trajectories is further devastation.
Yeah Ukraine has been devastated and lots of Ukrainians (both soldiers and civilian) are dying in the war, but Russia is suffering huge losses too, how else do you explain Russias fielding of old equipment (such as the T62)?. If Ukraine didn't put any resistance it would be even worse, Russia has been committing genocide with impunity in Ukraine and the only thing really standing in there way is the Ukrainian armed forces.
Ukraine isnt the first time this happened. It's just this time stirring up ethnic conflict along Russia's border is causing us to really suffer.
Sounds like a supply and demand problem. The marker solution would be to increase wages for driving testers and attract more candidates to these positions.
What we actually did, is to print money and give it to people for not working.
And so, as in the article, 20% inflation. Oops!
And (as a side issue) you shouldn't be surprised that large scale uncontained shocks lead to war. Look at the drought in Syria from 2006 to 2010. Look at the largely global economic shock in the 30s. If you want to see what a systemic supply shock can do to economies at scale have a look at the complete collapse in the lead up to 1177 BC.
So a large systemic shock like COVID will need to be "paid for", and the choices are "a very big bill" or "a catastrophic bug bill". I suspect that you feel that life was fine pre COVID and you were happy with your lot. And now you're not, you wish it was back the way it was (e.g. you can book a test). So since we had interventions (most "imposed" on us), post hoc ergo propter hoc the interventions are bad.
So my suggestion is to do a root cause analysis and realise that humans (both individually and collectively) are bad at dealing with black swans, even when we know it will come (sooner or later). And secondly, even if you don't like this human short coming and you wish that someone would just "get a grip" of the situation so you don't have to deal with something you don't like, it might help to have a bit more empathy towards people trying to help.
What alternative are you offering? Not taxing anyone much leaves us with a society that simply doesn't function, we see that right now. FUD about "well, they could tax the wrong people" is pretty irrelevant when we are already in a situation where most people are facing poverty and ruin. If this is all we can expect, then might as well roll the dice on doing it right.
Of course, the idea there is no way to actually tax the rich is absurd, we can do it, we have just had decades of government with no will to do so.
This is not FUD. They always tax the wrong people. We as a society can do many, many things but we simply cant coordinate to do them. And indeed we should consider this lack of coordination (for a lack of a better term) as something we should take into account when making decisions.
I honestly dont have a solution to this problem.
"We voted in the Tories again and they continued to lower taxes for their mates and screw over the poor" is hardly trying everything. Throwing your hands in the air, accepting suffering and society collapsing while they profit off it isn't an answer.
You are saying you don't think it's impossible, just that no one is willing to do it: we have to create pressure to do the right thing, and demand it, not make excuses and accept it as inevitable.
Which way is that, other than the ways we already do it?
- Tax capital gains and dividends that are classically the rates actually paid by the megarich rather than income tax.
- Tax wealth directly rather than just income.
- Tax much more heavily generally and commit to a significant basic income to ensure everyone has a solid baseline.
This is just off the top of my head, we have an entire government of people and a huge field of existing research and ideas, not to mention other countries and historic data on taxing more than the UK right now to look at.
So the question is can the UK handle it better than MT did in the early 80s. It took about 8 years last time, has monetary / fiscal understanding improved in any practical sense since then? Will the UK have another George Soros to inflict reality on the powers that be? Watch this space...
Take most rich people; their wealth is generally in assets like land, or in investments. If you gradually move their company ownership and land ownership to the government, what do you get?
Oh no, sounds terrible. /s