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Quick And Easy Demonstration Of The Economy And House Prices

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Get five coins.. lay them out in a line.

Explain that the first example is pre boom and infact the long term average house price..

Move two coins away from the three..

Point to the two..

Explain that as a proportion of someone take home salary.. this is a good example of how much would go toward house purchase..

The other three coins are spent into the economy or invested, tax and vat paid on purchases.. etc..

Now slide one coin from the Economy pile into the house purchase pile..

Look up and tell them that today.. this is the ballence.. at todays prices this is your house purchase.. and this is how much less the economy has.. mention tax revenues etc..

a good closer is to add that

"The high street, or spending of disposible income has always been considered to be a force making up 2/3rds of the economy.

its effective.

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Get five coins.. lay them out in a line.

Explain that the first example is pre boom and infact the long term average house price..

Move two coins away from the three..

Point to the two..

Explain that as a proportion of someone take home salary.. this is a good example of how much would go toward house purchase..

The other three coins are spent into the economy or invested, tax and vat paid on purchases.. etc..

Now slide one coin from the Economy pile into the house purchase pile..

Look up and tell them that today.. this is the ballence.. at todays prices this is your house purchase.. and this is how much less the economy has.. mention tax revenues etc..

a good closer is to add that

"The high street, or spending of disposible income has always been considered to be a force making up 2/3rds of the economy.

its effective.

simple

can you show the example to tony and gordon

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Except you need to take that coin out of the house pile to show all the Mewing that's been going on, then put two coins back into the house pile to show what effect the repayments on that MEWing will have in the future.

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Cool..

so start with my simple one..

and then.. say.." so how did this happen? how are we only seeing the economic effects now.?"

Look up and smile... "let me explain mewing.. and bare in mind the fantastic amounts of money involved.."

and do the example above..

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It's a nice example but you seem to have overlooked the chancellors magic, bottomless purse!

The public sector deficit is now about 3% of GDP( equating to about 7.5% of government spending)...If the economy slows and unemployment rises I wonder just how much GB will let this deficit increase.....

Can any economic people tell me if a deficit of say 6% of GDP would be such a bad thing if it were only run for a couple of years.......Reaganomics (cutting taxes whilst increasing spending) led to deficits this big in the US but strong growth in the following years eroded it .......................

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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