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Salary Increases Have Plunged To Only 1%: Cost Of Living Goes Up By 2.8%

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wouldn't say it's the bosses fault per se.it's what happens when you have a credit bubble.

Or more like the breaking of the unions, a persistently overvalued currency, globalisation and free trade with countries with much lower wage costs (and employment standards).

Edit - had an interesting conversation with some boomer friends-of-family. Had issues trying to get over the concept that annual increments don't happen any more in the private sector.. as for the concept that mortgages don't just vanish through wage-price inflation nowadays, nope.

Edited by fluffy666

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Or more like the breaking of the unions, a persistently overvalued currency, globalisation and free trade with countries with much lower wage costs (and employment standards).

Edit - had an interesting conversation with some boomer friends-of-family. Had issues trying to get over the concept that annual increments don't happen any more in the private sector.. as for the concept that mortgages don't just vanish through wage-price inflation nowadays, nope.

It happened for them therefore it is the rubric

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Or more like the breaking of the unions, a persistently overvalued currency, globalisation and free trade with countries with much lower wage costs (and employment standards).

Edit - had an interesting conversation with some boomer friends-of-family. Had issues trying to get over the concept that annual increments don't happen any more in the private sector.. as for the concept that mortgages don't just vanish through wage-price inflation nowadays, nope.

actually i don't know whats worse, this situation stagnating for a generation and them never realising what the problem is

Or

The same long period of stagnation but they realise at the bitter end what the problem was in some sort of epiphany and say sorry before popping their clogs. Still having made life a misery for the young

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It happened for them therefore it is the rubric

Not in a straight line.

As anyone whose mortgage ramped up when that idiot Lamont f*cked the UK over in '92 will vividly recall.

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Not in a straight line.

As anyone whose mortgage ramped up when that idiot Lamont f*cked the UK over in '92 will vividly recall.

Generally speaking, though, that would have hit a fairly narrow cohort - buying in the mid to late 1980s in the SE. And if you survived to perhaps 1995 you were home clear.

The classic boomers bought before perhaps 1975, and would be paying their mortgage out of spare change by 1992.

(This particular boomer friend, who bought a few flats in London cheap in the 1970s was also recommending 'bricks' as a good investment for me. Yeah, I'll just go snap up a few flats in London on a BTL basis, I'll be rich..)

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http://www.dailymail.co.uk/news/article-2310788/Salary-increases-plunged-1--Workers-forced-accept-small-rises-cost-living-goes-by-2-8.html

'Britain's bosses are crippling their workers with the worst-ever pay rises, official figures revealed yesterday.

The Office for National Statistics said the average worker is getting a pay rise of just one per cent, the lowest pay rise since its records began in 2001.

With the cost of living rising at 2.8 per cent, it means a worker’s pay is barely rising while their bills are rising at a rate which is nearly three times higher.

Since the financial crisis began in 2008, the ONS said there have been just three months when wages have risen faster than the consumer prices index measure of inflation.

Other bills from food to council tax, university tuition fees to childcare costs are rising, but workers are not being given a decent pay rise each year to allow their wages to keep up.

There is also pressure from the increase in VAT to 20 per cent, the loss or cut in child benefit for more than one million families and changes to tax credits.

Overall, the ONS said recently the average annual increase for the whole of the last decade was just 1.3 per cent, the lowest figure since records began in 1948.

A typical man in the private sector is earning less than he was being paid a decade ago after the figures have been adjusted for inflation.In 2002, a typical man with a full-time job in the private sector earned £12.67 per hour. A decade later, he is earning 30p less per hour'

wouldn't say it's the bosses fault per se.it's what happens when you have a credit bubble.

I suspect the true figure for rises is lower than the 1% , many people i know have had no rise for a few years now and some have had cuts, I can understand why lenders are wary about lending as some people have always stretched their income to the limit which is fine if your income is upwards but is a disaster when incomes start to fall.

Cannot see house prices rising much outside London with rises like these.

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Not in a straight line.

As anyone whose mortgage ramped up when that idiot Lamont f*cked the UK over in '92 will vividly recall.

You would think that would engender an air of caution.

Spotted 2 (different) Orange Mclarens in a week so someone must be getting a payrise. One on my street last night, any idea what Jonny Evans drive?

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Not in a straight line.

As anyone whose mortgage ramped up when that idiot Lamont f*cked the UK over in '92 will vividly recall.

That deliberate act to restrain asset prices back then (to pay nice fat wodges to anyone with money in a bank) is a key part of what led to the following crack up boom.

Artificial depressing of asset prices is as destabilising as artificial inflation of asset prices.

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Perhaps if the government reduced the burdens of doing business (business rates, corp tax, national insurance along with the over-arching red-tape/expensive, nonsensical rules), and also let asset prices fall (and therefore commercial rents), companies would be able to keep their staffs wages up with the high inflation they have engineered.

But then again, that would mean reducing the size of the state and allowing capitalism to do it's thing and we can't have that from a conservative government can we?

Edited by Reck B

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The problem is much worst than this. Does anyone believe that inflation is only 2.8%? I had my own inflation shock at the weekend. I have a particular fondness for things with ginger spice in them so I thought I would treat myself to a couple of gingerbread men from the bakery.

Now it is around 6-8 months since I bought gingerbread men but my memory is that they were about 3 for a pound (already less than the four you used to get for a quid 2-3 years ago). So I asked for 3 - thinking at most it might have gone up to £1.20 or so. No - gingerbread men now cost £1 each. So they have nearly tripled in price in the space of 6-8 months. I asked the lady to repeat the price several times as I simply couldn't believe it. But sure enough checking the other local bakers - gingerbread were now around a quid each!

Considering I can buy a entire loaf of bread for less than that and they are basically ginger biscuits - I'm utterly baffled how they can be so expensive.

Returning the original topic - it's clear we are not all in this together. There is obviously enough money for inflation busting pay rises - just not for the masses.

Edited by StainlessSteelCat

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The problem is much worst than this. Does anyone believe that inflation is only 2.8%? I had my own inflation shock at the weekend. I have a particular fondness for things with ginger spice in them so I thought I would treat myself to a couple of gingerbread men from the bakery.

Now it is around 6-8 months since I bought gingerbread men but my memory is that they were about 3 for a pound (already less than the four you used to get for a quid 2-3 years ago). So I asked for 3 - thinking at most it might have gone up to £1.20 or so. No - gingerbread men now cost £1 each. So they have nearly tripled in price in the space of 6-8 months. I asked the lady to repeat the price several times as I simply couldn't believe it. But sure enough checking the other local bakers - gingerbread were now around a quid each!

Considering I can buy a entire loaf of bread for less than that and they are basically ginger biscuits - I'm utterly baffled how they can be so expensive.

Returning the original topic - it's clear we are not all in this together. There is obviously enough money for inflation busting pay rises - just not for the masses.

I think the supermarkets such as Tesco sells them for around £0.10 each or less in a box...

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I think the supermarkets such as Tesco sells them for around £0.10 each or less in a box...

Is the quality the same? You can't just look at price. Price means nothing without first knowing whether the quality (ingredients etc) is comparable.

Edited by Errol

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  • 258 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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