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'Disaster in making' Covid lockdown policy blamed for cost of living crisis

Peter Schiff, an American stock broker, argued the Government needed to “do the opposite” of their fiscal measures in order to prevent the cost of living crisis now threatening the nation.

The economic schemes, including furlough, were questioned by Mr Schiff who suggests these have driven prices up in the aftermath of the pandemic.

GB News host Mark Steyn said: “The cost of living is the cost of lockdown, is it not?”

Mr Schiff replied: “Well sure, we didn’t get all that for free.

“A lot of people took vacations, they went home, they didn’t work and, meanwhile, governments just printed a lot of money.

“We produced fewer goods and services, prices have to go up – we don’t get stuff for nothing.

“If we’re going to have less stuff but more money to buy the stuff, then the only thing that can give are prices.

“Prices have to go up to reflect all the new money that’s been put into circulation and the absence of goods and services that have been produced to buy.”

Mr Steyn continued: “So while all the Government were trying to be caring to their citizens, they were ultimately just quintupling the cost of basic items like bread and milk and petrol and so forth.

“In other words, because they know about economics and the average citizen doesn’t, they must surely have known where this was going to wind up, and very quickly.”

The GB News host suggested the Government should have been aware of the dangers of introducing such economic measures at a time when production had slowed and many services were not accessible due to the pandemic.

The financial analyst then suggested measures should have been taken to discourage spending during lockdowns in order to prevent prices escalating as the nation opened up.

Read more: Sunak erupts in heated tax clash with BBC host Nick Robinson

Mr Schiff described economic measures during UK lockdowns as “a disaster in the making.”

Concerning the current state of the nation’s economy, the Government said: “As well as the Omicron variant, a number of other important factors will shape the economy in 2022 and thereafter.”

Government data on the economy acknowledges the disruption to global supply chains caused by Russia’s invasion of Ukraine as another accelerant to the cost of living crisis.

Under pressure to respond to the financial strain on households across the UK, The Chancellor recently announced a new set of emergency measures intended, in particular, to ease the burden of a surge in energy prices.



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