Executive Sadman Posted June 21, 2011 Share Posted June 21, 2011 True When the competetive forces are China india etc what is the Answer. Simple. Accept deflation of wages and allow globalization to continue. or Roll back globalization and pay a lot more for things that were made in the far east to be produced locally. Both result in a decimation of purchasing power, choose one. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted June 21, 2011 Share Posted June 21, 2011 Simple. Accept deflation of wages and allow globalization to continue. or Roll back globalization and pay a lot more for things that were made in the far east to be produced locally. Both result in a decimation of purchasing power, choose one. +1 Given what was happening in global trade, wages in the UK should have started falling in nominal terms some time in the 1980s. Quote Link to comment Share on other sites More sharing options...
awaytogo Posted June 22, 2011 Share Posted June 22, 2011 Simple. Accept deflation of wages and allow globalization to continue. or Roll back globalization and pay a lot more for things that were made in the far east to be produced locally. Both result in a decimation of purchasing power, choose one. Thats what i was trying to get over, wages are going to be static or fall, as house prices go up in the long run with wages i cannot see much of HPI for a while. Quote Link to comment Share on other sites More sharing options...
Austin Allegro Posted June 22, 2011 Share Posted June 22, 2011 Simple. Accept deflation of wages and allow globalization to continue. or Roll back globalization and pay a lot more for things that were made in the far east to be produced locally. Both result in a decimation of purchasing power, choose one. Yes it's basically the old free trade v fair trade (protectionism) argument again. Only this time we don't have an Empire and a strong navy to act as a huge trade block and the EU's Ruritanian fantasies of building something similar look increasingly ludicrous... Quote Link to comment Share on other sites More sharing options...
Number79 Posted June 22, 2011 Share Posted June 22, 2011 Just overheard a conversation between three housing officers who work for different housing associations. They all said they were busier than ever before, but all shared the same complaints. One was very specific on the figures. Salary to be reduced from £27k to £23.5k and car allowance withdrawn. Area management consolidated, so one manager covers three areas, on a salary reduced from £44k to £36k. Company properties are being sold, and workers have to relocate. Everybody has to reapply for their jobs, and if they refuse they'll be let go without redundancy payments. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted June 22, 2011 Author Share Posted June 22, 2011 Councildweller posted this article on another thread - may explain the squeeze: Supermarket in talks to register as housing association http://www.insidehousing.co.uk/tenancies/supermarket-in-talks-to-register-as-housing-association/6516231.article Worth reading, especially the last few paras advising HAs to get shot of vacant properties. What are the implications? The co-op is already in the legal market (for its members only), but the other big ones are free to invade by the end of the year. And they're lining up to have a go at retail banking. Quote Link to comment Share on other sites More sharing options...
wonderpup Posted June 22, 2011 Share Posted June 22, 2011 Accept deflation of wages and allow globalization to continue. Deflating wages in the west will kill globalisation anyway- no one to buy the stuff the slaves of china make, and they can't afford to buy it themselves. Giving all the money to handful of people is not nearly as clever as it first appears- unless you are in the business of selling luxury items to the elite. Quote Link to comment Share on other sites More sharing options...
Mr. Cholmondley-Warner Posted June 22, 2011 Share Posted June 22, 2011 Councildweller posted this article on another thread - may explain the squeeze: Supermarket in talks to register as housing association http://www.insidehousing.co.uk/tenancies/supermarket-in-talks-to-register-as-housing-association/6516231.article Worth reading, especially the last few paras advising HAs to get shot of vacant properties. What are the implications? The co-op is already in the legal market (for its members only), but the other big ones are free to invade by the end of the year. And they're lining up to have a go at retail banking. Not likely Main reason is housing grant has been cut dramatically from about £80k to £40K making it more difficult to develop Also impact on land values will have affected balance sheets, most HA also borrow to fund development. They are now just following the private sector Things will be hard for them over next few years, there will be a few failures/mergers Quote Link to comment Share on other sites More sharing options...
JimDiGritz Posted June 22, 2011 Share Posted June 22, 2011 Yes it's basically the old free trade v fair trade (protectionism) argument again. Only this time we don't have an Empire and a strong navy to act as a huge trade block and the EU's Ruritanian fantasies of building something similar look increasingly ludicrous... Exactly. You can either have £15 DVD players or near full employment. Your choice. Quote Link to comment Share on other sites More sharing options...
Blod Posted June 22, 2011 Share Posted June 22, 2011 Simple. Accept deflation of wages and allow globalization to continue. or Roll back globalization and pay a lot more for things that were made in the far east to be produced locally. Both result in a decimation of purchasing power, choose one. Made worse by the fact that instead of the high earners in the west experiencing this the opposite has happened which in turn has exaggerated this. If their earning had not robbed out the lower paid then consumer spending would have been maintained post the CC. Quote Link to comment Share on other sites More sharing options...
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