Jump to content
House Price Crash Forum
Sign in to follow this  
proprlyst

Lack Of Strong Earnings Growth Not Supportive To House Prices

Recommended Posts

Average earnings for employees lags house price. Currently low earnings growth does not bode well for house prices. Prospects for higher growth in earnings appear to be dim. specially so for an economy characterised by low utilization rates and historically high unemployment,

aei_hpi.jpg

post-25690-12860475766161_thumb.jpg

Share this post


Link to post
Share on other sites

Wages have been relatively flat for three years, but on average they have gone up a little. The last 100 years of economic history is based on never ending inflation. You pay more, to earn more to pay off your bigger debt each year, but in the future you earn more and things carry on, the same is true of your kids. Even a small amount of inflation compounds very efficiently over a number of years. Inflation/Deflation is a choice for gov, inflation is a much easier choice to make

Edited by AteMoose

Share this post


Link to post
Share on other sites

Wages have been relatively flat for three years, but on average they have gone up a little. The last 100 years of economic history is based on never ending inflation. You pay more, to earn more to pay off your bigger debt each year, but in the future you earn more and things carry on, the same is true of your kids. Even a small amount of inflation compounds very efficiently over a number of years. Inflation/Deflation is a choice for gov, inflation is a much easier choice to make

It was only the banksters changing the balance between wages and bonuses that caused the bizarre wage spike while deep in recession, now that quirk is out of the system....

99001638.jpg

48886835.jpg

Edited by Confounded

Share this post


Link to post
Share on other sites

Average earnings for employees lags house price. Currently low earnings growth does not bode well for house prices. Prospects for higher growth in earnings appear to be dim. specially so for an economy characterised by low utilization rates and historically high unemployment,

aei_hpi.jpg

no shit sherlock

one of the weakest topics for a long time imo.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 261 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.