The last time interest rates were this high they came down rather fast. This time central bankers are determined to manage a slow unwind and deliver a return to growth without wreaking havoc on the economy. Will they be successful? This week Steve Keen argues the high interest rates are inflicting damage without treating the problem. Inflation is being caused by businesses increasing their mark-ups. But, Phil asks, surely they are only able to do that because demand is outstripping supply. And what should interest rates return to? Central bakers call it the R* - is there a danger if they assume it’s too high we could drive ourselves towards debt deflation? Hosted on Acast. See acast.com/privacy for more information.

Complex systems don’t have to be complicated to provided deep insights into the real world. That’s the view of Doyne Farmer, special guest on this week’s podcast. It’s an approach he shares to economics with Steve Keen. Steve develops systems from the top-down, whereas Doyne’s work focuses on agent-driven bottom-up modelling. But they arrive at similar conclusions. Phil Dobbie talks to them both about how we could arrive at a more accurate understanding of the economy and financial systems, which could result in better regulatory and planning behaviour by central banks and governments. Doyne also describes how he started down the road of complex modelling, using science to beat the casino tables in Vegas. Or more, get a copy of Doyne’s new book: Making Sense of Chaos– A Better Economics for a Better World. Hosted on Acast. See acast.com/privacy for more information.

Explore the puzzling dynamics of savings and debt, where often, money saved is merely slated to pay off existing loans. Discover how increased savings can paradoxically dampen consumer spending, affecting business investment. Dive into critiques of traditional economic theories, revealing how soaring housing prices and personal debt reshape our financial landscape. Hear arguments for innovative solutions to tackle economic inequality while questioning the notion that more savings leads to greater investment. Unpack these intricate financial relationships!

This discussion dives into the often-overlooked role of energy in economic models, challenging the focus on labor and capital. Energy is presented as a vital driver of growth, essential for both humans and machines. The conversation emphasizes the need to reevaluate energy's place in economic theories to promote sustainability. It also tackles the link between energy consumption, GDP, and environmental impact, advocating for a transition to more efficient energy systems, while reminding us that economic growth must align with planetary health.

We are obsessed with the need to own things, not least, our homes. But for younger people that is increasingly becoming a pipedream, unless they are lucky enough to gain a healthy inheritance. Even then it’s going to come later in life. In the meantime, we save like crazy, and even when we do get a house, we spend decades paying it off though a hefty loan form the bank. The finance sector are the big winners. But should we do away with this unhealthy obsession and rent our homes. A d should the government be the landlord most of us turn to, rather than a private property owner borrowing from their bank?  Hosted on Acast. See acast.com/privacy for more information.

Exploring the dominance of tech giants in the global share market, the impact of high valuations on the economy, and the challenges faced by smaller businesses in competing with cash-rich companies. Discussing market structures, monopolies, and proposed solutions to address issues of competition, innovation, and financial literacy.

Labour has romped to victory in the UK and they need to get cracking on all their election promises. One of those is the creation of Great British Energy. Keir Starmer points to the number of foreign interests owning energy generation in the UK. But, as Phil highlights this week, foreign companies are also heavily invested in energy distribution and retailing. The National Grid is suffering from a lack of investment. Doesn’t that also need to be brought into public hands. And what about all the energy retailers who dd nothing to the picture apart from extra marketing costs, confusing plans and the risk of collapse. Phil asks Steve whether, if you add all of this together, isn’t there a strong case to put the entire energy delivery chain into public hands, from creation to delivery. But that’s not what Keir Starmer is planning., even though its accepted wisdom in most parts of the world. Hosted on Acast. See acast.com/privacy for more information.

In the UK the proportion of the population aged over 65 has grown from 16 percent in 2000 to over 19% today. It’s a similar story throughout the western world as the population ages. That’s seen as an enormous liability for governments who will have to pay out pensions to their old folk. Hence the drive to get people to put money into private schemes. In the UK there’s over £2.2 trillion tied up in pension funds, more than AUD$3.4 trillion in Australia. So, what good is that money doing? It will be paid out sometime, but is it helping the economy in the meantime? Steve says it’ll doing a good job in driving up asset prices, but Phil suggests some of it is being invested in productive causes, like property development and private equity funding. The good and bad of private pensions on this week’s podcasts. Hosted on Acast. See acast.com/privacy for more information.

Carla Denyer and Adrian Ramsay recently launched the Greens Manifesto in the run up to the UK election. Phil and Steve discuss it on this week’s podcast and conclude the one thing that seems to have slipped down the priority list, is all the green stuff. They talk about fixing broken Britain, like every party, and correcting wealth inequality. They also promise that their ideas are fully costed, and can be paid for – for example, by a carbon tax. But they know they will never run government, so why pretend? Why not use their moment in the sun to return the debate to the fundamental issue of climate change. The future of the planet looks pretty sick when even the Greens push it down the agenda. Hosted on Acast. See acast.com/privacy for more information.

The podcast explores the impact of immigration on elections worldwide, especially the rise of right-wing movements and lack of viable solutions. It discusses the complexity of immigration's effects on job competition, public services, and wages. The hosts analyze recent global elections, electoral systems in various countries, and economic influences on migration patterns. The conversation also delves into austerity measures, wealth concentration driving immigration, and political exploitation of migrant workers.