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northwestsmith2

Labour Politician Gets It Right

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http://www.publications.parliament.uk/cgi-bin/newhtml_hl?DB=semukparl&STEMMER=en&ALL=&ANY=&CATEGORIES=&SIMPLE=&SPEAKER=&COLOUR=red&STYLE=s&ANCHOR=Debate-6_spnew16&URL=/pa/cm198990/cmhansrd/1990-03-22/Debate-6.html#Debate-6_spnew16

A survey in The Sunday Times covering the top 250 companies in Britain showed that their directors had pay rises of 28 per cent. during the past year, and that their average pay was £221,000 a year. That is a startling contrast to the average pay of £10,206 for their employees. We are entitled to ask why the poor and those with low wages are kept down and effectively priced out of our society while the rich are encouraged to become richer.

Since 1979, the bottom 50 per cent. of British society have lost £8.50 per family because of the Government's tax changes, while the top 10 per cent. have gained £40 per family. That is not a version of trickle- down economics ; it is more a direct redistribution from the poorest to the richest. We must not forget that the Social Security Act 1989 put in place the very mechanism that will cause people to accept jobs whatever the low wage offered. If this Government's so-called economic miracle is to be measured by anything, it should be by their exclusion of the poor and the low-paid in society. The Budget reinforces the Government's deliberate policy to push down wages and to shift from the one-nation approach, involving a jobs-for-all social democracy, to a two-nations approach in which there is a clear structural rift between the rich and the poor. The

Column 1308

Budget underlines the fact that the 1990s will be the decade of low pay. It is too late for the Government to change their economic strategy. The only option for the people of Britain is to change the Government.

8.14 pm

Mr. Michael Irvine (Ipswich) : Page 16 of the Red Book shows a chart which sets out the course of house price inflation since 1983. There was an acceleration in prices towards the latter part of 1987, and in 1988 there was a significant surge. I believe that that significant surge in house prices had a great deal to do with our present difficulties, acting almost as an engine for inflation in other parts of the economy.

Home owners, as holders of rapidly appreciating assets, realised that they could borrow against those assets, and they also felt more inclined to borrow. The growth of credit then fed upon itself. House prices were driven up beyond the reach of first-time buyers. People mortgaged themselves to the hilt to buy homes and, having done so, then felt the need to press for greater wage increases. Again, that meant inflationary pressure.

There were other effects. Companies in my constituency and throughout the south and south-east found themselves short of skilled labour. They tried to recruit from other parts of the country where the labour market was less tight, but found that the high cost of housing in the south and south-east was a great deterrent to such recruitment--and so the rigidity of the labour market was reinforced. Part of the reason for the tendency towards house price inflation--which has been a feature of past economic booms, including the economic boom of the past three years--is the incentives for home ownership. I am all in favour of retaining existing incentives, because home ownership is excellent and should be encouraged, but we must face the fact that there has been an imbalance.

For too long, the incentives, the advantages and the tax breaks have been excessively loaded towards home ownership. A redress of that imbalance is badly needed. That is why my right hon. Friend the Chancellor was so right to shift the emphasis to other forms of personal saving, giving them the incentives and tax benefits that have been enjoyed by home owners. That is a significant move, which will benefit the economy, and perhaps, when the economy booms again will reduce the risk of house price inflation taking off as it did in the last boom.

Are we ever going to learn?

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Build Council Houses.

Jobs and manufacturing benefit.

Supply of houses improved.

thats what they need to do, btw in the 50 and 60 people were more active and demand more form the government, these days the british accept anything.

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Same old same old, the big quote was from March 22nd 1990.

http://www.publicati...ebate-6_spnew16

A survey in The Sunday Times covering the top 250 companies in Britain showed that their directors had pay rises of 28 per cent. during the past year, and that their average pay was £221,000 a year. That is a startling contrast to the average pay of £10,206 for their employees. We are entitled to ask why the poor and those with low wages are kept down and effectively priced out of our society while the rich are encouraged to become richer.

Since 1979, the bottom 50 per cent. of British society have lost £8.50 per family because of the Government's tax changes, while the top 10 per cent. have gained £40 per family. That is not a version of trickle- down economics ; it is more a direct redistribution from the poorest to the richest. We must not forget that the Social Security Act 1989 put in place the very mechanism that will cause people to accept jobs whatever the low wage offered. If this Government's so-called economic miracle is to be measured by anything, it should be by their exclusion of the poor and the low-paid in society. The Budget reinforces the Government's deliberate policy to push down wages and to shift from the one-nation approach, involving a jobs-for-all social democracy, to a two-nations approach in which there is a clear structural rift between the rich and the poor. The

Column 1308

Budget underlines the fact that the 1990s will be the decade of low pay. It is too late for the Government to change their economic strategy. The only option for the people of Britain is to change the Government.

8.14 pm

Mr. Michael Irvine (Ipswich) : Page 16 of the Red Book shows a chart which sets out the course of house price inflation since 1983. There was an acceleration in prices towards the latter part of 1987, and in 1988 there was a significant surge. I believe that that significant surge in house prices had a great deal to do with our present difficulties, acting almost as an engine for inflation in other parts of the economy.

Home owners, as holders of rapidly appreciating assets, realised that they could borrow against those assets, and they also felt more inclined to borrow. The growth of credit then fed upon itself. House prices were driven up beyond the reach of first-time buyers. People mortgaged themselves to the hilt to buy homes and, having done so, then felt the need to press for greater wage increases. Again, that meant inflationary pressure.

There were other effects. Companies in my constituency and throughout the south and south-east found themselves short of skilled labour. They tried to recruit from other parts of the country where the labour market was less tight, but found that the high cost of housing in the south and south-east was a great deterrent to such recruitment--and so the rigidity of the labour market was reinforced. Part of the reason for the tendency towards house price inflation--which has been a feature of past economic booms, including the economic boom of the past three years--is the incentives for home ownership. I am all in favour of retaining existing incentives, because home ownership is excellent and should be encouraged, but we must face the fact that there has been an imbalance.

For too long, the incentives, the advantages and the tax breaks have been excessively loaded towards home ownership. A redress of that imbalance is badly needed. That is why my right hon. Friend the Chancellor was so right to shift the emphasis to other forms of personal saving, giving them the incentives and tax benefits that have been enjoyed by home owners. That is a significant move, which will benefit the economy, and perhaps, when the economy booms again will reduce the risk of house price inflation taking off as it did in the last boom.

Edited by northwestsmith2

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This is the tragic thing about our politics.

At least some of the liebour party arent ignorant, or stupid. They know whats going on. The tragic bit is that they do nothing about it, which lends me to believe that they are geniuely evil.

They are false prophets, snake oilers, call them what you will. Every 'socialist' is.

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Have Labour learnt nothing from Brown's microphone debacle? :lol:

http://www.bbc.co.uk/news/uk-england-lancashire-12809163

It's a cultural issue from being in power too long. Remember guys - don't talk down to your constituents or be rude about them behind their backs.

I'm not sure about that - looking at the MPs picture I doubt he's been anywhere near a position of power even within his own party. :lol:

The comment's only about rival football fans though; there's no love lost there. I wonder if they knew he was a Blackburn supporter when they voted him in?

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Build Council Houses.

Jobs and manufacturing benefit.

Supply of houses improved.

Yes, and it keeps the chavs all in one place so the rest of us know where not to live.

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  • 153 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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