OnlyMe Posted March 5, 2011 Share Posted March 5, 2011 http://www.marketoracle.co.uk/Article26717.html Middle Classes To Lose as Much as 25% of their real earnings. Whilst the poor can rely on benefits and the rich can rely on capital growth to profit from asset markets being inflated by the central banks far beyond the official inflation indices. However that leaves 70% of the British population that class themselves as being middle class to feel the full force of the Inflation and economic austerity mega-trend. Whilst many students (middle class wannabe's) have woken up to a near tripling of the debt burden they will be placed under, however, the situation for Britains vast middle class is set to get far worse than that which even the dire inflation outlook implies because on top of the inflation stealth theft of wealth and wage purchasing power there are a series of tax rises and benefit cuts due to hit the middle class workers of Britain and especially those with children as taxes rise such as national insurance, and tax allowances are cut, and benefits (tax reimbursements) such as tax credits are reduced and in many cases totally withdrawn which means middle class workers could be hit by an additional loss of earnings purchasing power of 5% per annum on top of the real inflation theft of at least 3% per annum, none of which features in any Bank of England or Government economic propaganda report. Whilst trying hard to refrain from using expletives here, but the middle class of Britain is truly FQ&*ED! Middle class families will typically be poorer by between 15% and 25% by April 2013, as from Jan 2013 many benefits will be cut such as the universal tax free child benefit payments being ripped away that alone amount to a loss of 7% of disposable income for a £45k wage earner with 3 children, that is destined to break the backs of many a middle class family fighting hard to stay above water in the wake of soaring prices. Quote Link to comment Share on other sites More sharing options...
erranta Posted March 5, 2011 Share Posted March 5, 2011 (edited) http://www.marketora...ticle26717.html Middle Classes To Lose as Much as 25% of their real earnings. Whilst the poor can rely on benefits and the rich can rely on capital growth to profit from asset markets being inflated by the central banks far beyond the official inflation indices. However that leaves 70% of the British population that class themselves as being middle class to feel the full force of the Inflation and economic austerity mega-trend. Whilst many students (middle class wannabe's) have woken up to a near tripling of the debt burden they will be placed under, however, the situation for Britains vast middle class is set to get far worse than that which even the dire inflation outlook implies because on top of the inflation stealth theft of wealth and wage purchasing power there are a series of tax rises and benefit cuts due to hit the middle class workers of Britain and especially those with children as taxes rise such as national insurance, and tax allowances are cut, and benefits (tax reimbursements) such as tax credits are reduced and in many cases totally withdrawn which means middle class workers could be hit by an additional loss of earnings purchasing power of 5% per annum on top of the real inflation theft of at least 3% per annum, none of which features in any Bank of England or Government economic propaganda report. Whilst trying hard to refrain from using expletives here, but the middle class of Britain is truly FQ&*ED! Middle class families will typically be poorer by between 15% and 25% by April 2013, as from Jan 2013 many benefits will be cut such as the universal tax free child benefit payments being ripped away that alone amount to a loss of 7% of disposable income for a £45k wage earner with 3 children, that is destined to break the backs of many a middle class family fighting hard to stay above water in the wake of soaring prices. These sarf east biased articles (knocked out by £200,000+ a year wasters) are always amusing - coz if the median UK wage is around £25,000?? - how many £45,000 wage earners will this affect? PS If they can't find alternative sources to rip populations off - watch the City boys incomes drop as millions stop saving for pensions and have no extra cash available for 'investing' Edited March 5, 2011 by erranta Quote Link to comment Share on other sites More sharing options...
porca misèria Posted March 5, 2011 Share Posted March 5, 2011 http://www.marketoracle.co.uk/Article26717.html Middle Classes To Lose as Much as 25% of their real earnings. Hopelessly misses the point. If it had printed that a decade earlier then respect. But real earnings were trashed by HPI and associated money supply growth in the bubble years. All they're anticipating now is the spring uncoiling to something more normal. 2003 inflation showing up in 2012 measures. As seen in Ankh Morpork's Pork Futures Warehouse. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 5, 2011 Share Posted March 5, 2011 the middle classes have apparently blindly put their money in two places over the past decade(s) - properdie, and deposit accounts their problem really, one thing to lose money, another to lose money without thinking a bit about it first, and then acting surprised when - horror of horrors - the govt has moved on and is thinking about giving later generations a chance. There there. Quote Link to comment Share on other sites More sharing options...
HPC001 Posted March 5, 2011 Share Posted March 5, 2011 £45k, as opposed to £2.3k on the dole (plus the inevitable homelessness when the landlord discovers it)...I know which I'd prefer. Quote Link to comment Share on other sites More sharing options...
Redcellar Posted March 5, 2011 Share Posted March 5, 2011 "45K wage earner" losing lots of money. Oh no, the world endeth. Given the average has been pointed out as being £25K it's hard to shed a tear and feel sorry. Maybe they can drop one of the two overseas holidays a year, or perhaps not buy a new car every other year? Just a thought. Quote Link to comment Share on other sites More sharing options...
silver surfer Posted March 5, 2011 Share Posted March 5, 2011 http://www.marketoracle.co.uk/Article26717.html Middle Classes To Lose as Much as 25% of their real earnings. Whilst the poor can rely on benefits and the rich can rely on capital growth to profit from asset markets being inflated by the central banks far beyond the official inflation indices. However that leaves 70% of the British population that class themselves as being middle class to feel the full force of the Inflation and economic austerity mega-trend. Whilst many students (middle class wannabe's) have woken up to a near tripling of the debt burden they will be placed under, however, the situation for Britains vast middle class is set to get far worse than that which even the dire inflation outlook implies because on top of the inflation stealth theft of wealth and wage purchasing power there are a series of tax rises and benefit cuts due to hit the middle class workers of Britain and especially those with children as taxes rise such as national insurance, and tax allowances are cut, and benefits (tax reimbursements) such as tax credits are reduced and in many cases totally withdrawn which means middle class workers could be hit by an additional loss of earnings purchasing power of 5% per annum on top of the real inflation theft of at least 3% per annum, none of which features in any Bank of England or Government economic propaganda report. Whilst trying hard to refrain from using expletives here, but the middle class of Britain is truly FQ&*ED! Middle class families will typically be poorer by between 15% and 25% by April 2013, as from Jan 2013 many benefits will be cut such as the universal tax free child benefit payments being ripped away that alone amount to a loss of 7% of disposable income for a £45k wage earner with 3 children, that is destined to break the backs of many a middle class family fighting hard to stay above water in the wake of soaring prices. Pretty much everyone in the west is seeing their living standards whittled away. It's human nature I guess to become tribal under adversity, and claim that "we" are unfairly suffering while "others" are escaping the pain. This article expresses middle class woes, but there's similar screeching from the minimum wage poor, "vulnerable" benefit recipients, students, generation x and y, pensioners, "front line" public servants, and "overtaxed wealth creators". Look around and just about everyone's bleating. The fact is western productivity growth has been slipping away since the 1980's, and without that there's just less wealth available. For most households this was masked for a while by the entry of women into the workforce, longer working hours, and shouldering higher debts. But we're running out of these type of non sustainable solutions. There's only one more left, a retirement age in the 70's. After that we'll have to face up to the new reality that our kids, and our kid's kids, will be no better off than us and may even be noticeably poorer. Quote Link to comment Share on other sites More sharing options...
RentingForever Posted March 5, 2011 Share Posted March 5, 2011 "45K wage earner" losing lots of money. Oh no, the world endeth. Given the average has been pointed out as being £25K it's hard to shed a tear and feel sorry. Maybe they can drop one of the two overseas holidays a year, or perhaps not buy a new car every other year? Just a thought. Particularly as the loss in "earnings" the article is going on about is mostly the loss of middle class benefits for kids - which the rest of us are having to subsidise. Quote Link to comment Share on other sites More sharing options...
LJAR Posted March 6, 2011 Share Posted March 6, 2011 Wages a re a bit more complicated than "mean wage earner = 25k" eg the average man earns £35.5k at his peak. most people earn more money when they are older and so a £45k wage earner is not all that uncommon or amazingly rich for a head of household. Admittedly my heart doesn't bleed, but the average household earns something like £40k. Quote Link to comment Share on other sites More sharing options...
nohpc Posted March 6, 2011 Share Posted March 6, 2011 Ouch is all I can say. The middle classes are in for a tough time. You wouldn't know it though as the sheeple seem to be spending money on crap they don't need like there's no tomorrow. Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted March 6, 2011 Share Posted March 6, 2011 The middle classes are going to have their benefits cut eh? Bummer. Could it be that if you are on benefits you are not actually middle class? Or could it be the middle classes shouldn't have been receiving benefits in the first place? Quote Link to comment Share on other sites More sharing options...
erranta Posted March 7, 2011 Share Posted March 7, 2011 The middle classes are going to have their benefits cut eh? Bummer. Could it be that if you are on benefits you are not actually middle class? Or could it be the middle classes shouldn't have been receiving benefits in the first place? It says quite clearly in their Orwellian manifesto (1984) who the 3 classes are! The middle class is to be extinguished - oooh well I 'NEVER' Get yourself up to date! Quote Link to comment Share on other sites More sharing options...
billybong Posted March 7, 2011 Share Posted March 7, 2011 (edited) The middle classes are going to have their benefits cut eh? Bummer. Could it be that if you are on benefits you are not actually middle class? Or could it be the middle classes shouldn't have been receiving benefits in the first place? It's been quite clever the way they lumped so many benefits on people with quite high incomes on the basis that once received it's painful to give back - and in the certain knowledge that one day there would be a day of reckoning. If the benefits had never been given to start with then they wouldn't have been missed. It's been drug dealer politics for many years now but it really went into overdrive from 1997. Edited March 7, 2011 by billybong Quote Link to comment Share on other sites More sharing options...
erranta Posted March 7, 2011 Share Posted March 7, 2011 (edited) It's been quite clever the way they lumped so many benefits on people with quite high incomes on the basis that once received it's painful to give back - and in the certain knowledge that one day there would be a day of reckoning. If the benefits had never been given to start with then they wouldn't have been missed. It's been drug dealer politics for many years now but it really went into overdrive from 1997. Yes! The 'Nanny' STATE (of Peter Pan) with Darling at the helm! Never Never land (Netherlands) Who are the evil Pirates in our present World? "Even before the British had consolidated their hold on New Netherlands the area was giving a foreshadowing of what it would become. Pirates which raided the East Indies and the Red Sea were outfitted in what is today New York and Rhode Island. William Patterson (born c. 1655 in Scotland) was the evil genius behind the establishment of the Bank of Engiand. It is strongly believed that he was a trader in New York in 1668-69 and that prior to this he had worked with the pirate Morgan, who operated in the New Netherlands area. (JPMorgan = piratical symbollism ) Witchcraft was part of some people's lives in New Netherlands, but the colony was far more lenient toward them than in the Puritan colony in Massachusetts. The last Dutch governor of New Netherlands, Gov. Peter Stuyvesant's sister-in-law was suspected of witchcraft, but acquitted. Ralph Hall of Seatalcott, Long Island and his wife were the only ones seriously tried of witchcraft in New Amsterdam and they were acquitted. In 1687, the British had taken the New Netherlands from the Dutch for the second and final time, and they made the Dutch take an oath of allegiance to the British Crown. Three Van Duyns of New Amsterdam Satanists, are recorded having taken that oath" Note the Word "TRADER" alongside the Pirates in New Amsterdam/York Nana was a New-found-land (Oak island etc) DOG employed as a nanny! Nana/nania Also another name for Goats and what the horny beasts are symbolically associated with? Edited March 7, 2011 by erranta Quote Link to comment Share on other sites More sharing options...
Lepista Posted March 7, 2011 Share Posted March 7, 2011 Wages a re a bit more complicated than "mean wage earner = 25k" eg the average man earns £35.5k at his peak. most people earn more money when they are older and so a £45k wage earner is not all that uncommon or amazingly rich for a head of household. I would agree Admittedly my heart doesn't bleed, but the average household earns something like £40k. Now you're just speculating. Average wage is, as you say, around £25k, however average household income is much less than the £40k you guessed at. Average household income is much closer to something like £30-35k. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted March 7, 2011 Share Posted March 7, 2011 These are not the middle classes, they are the fabled middle earners we hear about. Loving all the commie comments so far This is not quite what I expected from the coalition as they create this earnings no man's land above the 40% tax rate. Trying to keep the workers in their place obviously. I hope it was an unintended consequence not their plan all along. Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted March 7, 2011 Share Posted March 7, 2011 Could it be that if you are on benefits you are not actually middle class? Or could it be the middle classes shouldn't have been receiving benefits in the first place? There are two sides to that coin, the other one being tax. If the middle classes weren't effectively paying 50-60% tax (once you take into account everything: income tax, NI, council tax, VAT, petrol duty etc.), then I might agree with you that they shouldn't get some of it back in state handouts. As things are, thanks to the tax and benefit system, a typical household on £25k probably has more actual disposable income than one on £43k. Quote Link to comment Share on other sites More sharing options...
Lepista Posted March 7, 2011 Share Posted March 7, 2011 There are two sides to that coin, the other one being tax. If the middle classes weren't effectively paying 50-60% tax (once you take into account everything: income tax, NI, council tax, VAT, petrol duty etc.), then I might agree with you that they shouldn't get some of it back in state handouts. As things are, thanks to the tax and benefit system, a typical household on £25k probably has more actual disposable income than one on £43k. I realise you've said 'etc.', however it is worth pointing out that if you are employed, then your employer pays a good chunk of money, that otherwise could have been your wages, as Employers NI and tax. So if you're on a salary of £20k, your employer is paying significant;y moer than that for you. Just thought I'd mention it, because it is often forgotten in discussions about how much tax you pay. As an aside, Does the pblic sector have to pey these "extra" tx's / NI contributions too? Quote Link to comment Share on other sites More sharing options...
Goat Posted March 7, 2011 Share Posted March 7, 2011 (edited) £45k, as opposed to £2.3k on the dole (plus the inevitable homelessness when the landlord discovers it)...I know which I'd prefer. Not really comparing like with like there. £45,000 is a fantastic salary if you're in your twenties with no kids buy I'd guess that the vast majority of people earning that sort of money are mid 30's onwards trying to support children. £45,000 equates to about £30,000 net. I've checked and as a single parent with 2 kids you would be entiled to a benefits package of £25,000+ in my area. Knock off costs of getting to work and add in a bit of cash in hand work; factor in things such as free prescriptions etc and in reality your £45,000 wage earner is worse off in work. Edited March 7, 2011 by Goat Quote Link to comment Share on other sites More sharing options...
miko Posted March 7, 2011 Share Posted March 7, 2011 Knock off costs of getting to work and add in a bit of cash in hand work; factor in things such as free prescriptions etc and in reality your £45,000 wage earner is worse off in work. Correct This is the big problem with our very compicated tax and benefits system . Those that seem to be on good earnings after taking into account high costs and not getting any benefits that lower earners or non earners receive the salary that seems to be a dream is not. Those on less than the stated £45k but also not getting any in work benefits are the new poor the working poor. Quote Link to comment Share on other sites More sharing options...
Lepista Posted March 7, 2011 Share Posted March 7, 2011 Losing 25% of their REAL earnings is HUGE. I would suspect that is more then 100% of their discretionary spending, meaning there is no more blood in this stone. Quote Link to comment Share on other sites More sharing options...
Nationalist Posted March 7, 2011 Share Posted March 7, 2011 Universal Credit is coming. its claim to fame is that it fixes the marginal withdrawal rate at 65%, ie, if you're on benefits and get some work you get to keep 35% of what you earn. Currently you can lose near on 100% at low work levels (eg doing 10 hrs pw, at min wage.) Quote Link to comment Share on other sites More sharing options...
Guest UK Debt Slave Posted March 7, 2011 Share Posted March 7, 2011 It says quite clearly in their Orwellian manifesto (1984) who the 3 classes are! The middle class is to be extinguished - oooh well I 'NEVER' Get yourself up to date! The extermination of the middle class is deliberate As is the destruction of our nation That's Fabian socialism for you. Bliar repackaged Labour to sell it to the bovine morons but the objectives (internationalist socialism) never changed. The economic crisis, which was deliberately engineered, has just accelerated their objectives. Shameron, Osborne and Bilderberg Clarke all represent the same ambitions under the guise of the conservative party. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted March 7, 2011 Share Posted March 7, 2011 Universal Credit is coming. its claim to fame is that it fixes the marginal withdrawal rate at 65%, ie, if you're on benefits and get some work you get to keep 35% of what you earn. Currently you can lose near on 100% at low work levels (eg doing 10 hrs pw, at min wage.) Only nearly 100%? Back in 2003 my meagre earnings cost me 300% in loss of benefits (predominantly housing, of course). Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted March 7, 2011 Share Posted March 7, 2011 Only nearly 100%? Back in 2003 my meagre earnings cost me 300% in loss of benefits (predominantly housing, of course). Only 300%? Piffle What's the marginal tax rate of earning £1 over the 40% threshold and losing £1040 for your first child let alone more if you have them? Quote Link to comment Share on other sites More sharing options...
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