Tuc: Shrinking Pay Damaging Living Standards And Holding Back Economy

[interestrateripoff]

http://www.guardian.co.uk/money/2013/jun/11/tuc-pay-living-standards-economy

The UK's annual pay packet has shrunk by £52bn compared with the start of the financial crisis, according to research from the Trades Union Congress marking the launch of its pay rise campaign.

Total pay was 7.5% lower in 2012 than on the eve of the recession in 2007, with the drop in disposable income damaging living standards and sucking billions out of local economies, according to the TUC. It puts the drop down to a combination of low pay growth in real terms, changes in the kind of jobs people do and reduced hours.

"Over the last five years people have taken a massive hit in their pay packets, while millions more have had to reduce their hours or take lower paid work. Many people have lost their jobs altogether," said the TUC general secretary, Frances O'Grady, launching the Britain Needs a Pay Rise campaign. "It's no wonder businesses are struggling when so much demand has been sucked out of the economy."

Yes how are the Chinese coping with the UK not buying tat?

[Snugglybear]

http://www.guardian.co.uk/money/2013/jun/11/tuc-pay-living-standards-economy

Yes how are the Chinese coping with the UK not buying tat?

Aren't they now trying to sell tat to each other increase their internal consumption?

[btl_hater]

Looks like house prices are going to rise like everyone keeps telling us then.

[TheCountOfNowhere]

Looks like house prices are going to rise like everyone keeps telling us then.

Yip, we are all poorer so can simply borrow more to cover the shortfall......

[fluffy666]

Can't be true, workers and consumers are two completely separate sets of people who don't even live on the same planet, so there can't possibly be any connection between depressed wages and depressed sales. Because economics.

[Bloo Loo]

diposable income is not related to the amount of debt people take on.

the entirely natural cost of debt is cleverly reduced by the banking system as the debt load increases.

It is therefore entirely natural and proper that house prices will rise for ever.

[PopGun]

diposable income is not related to the amount of debt people take on.

So People don't borrow to buy tat?

Or put the weekly shop or utility bills on plastic?

[Bloo Loo]

So People don't borrow to buy tat?

Or put the weekly shop or utility bills on plastic?

Of course they do, but the lenders cleverly adjust the cost of that self same borrowing to ensure people can do it for ever.

[Guest eight]

Can't be true, workers and consumers are two completely separate sets of people who don't even live on the same planet,

There is an element of truth to that though, under our tax credit-tastic system?

[winkie]

....look at it this way shrinking pay can only mean lower prices.....can't pay won't pay.

....prices are often set to the price they know people will and can pay.......otherwise nobody could sell enough to make it worth their while selling it.

[fluffy666]

There is an element of truth to that though, under our tax credit-tastic system?

.. Plus pensions, indeed.

Although since a very big chunk of the tax base is taxes on wages, tax credits and pensions also come under pressure with declining wages.

[yokel]

Has anyone heard George or Dave actually being challenged about the active policy to reduce average living standards?

I'm not saying that living standards shouldn't fall, but we/they need to be honest about it.

Pay freeze/cuts - now imposed in public sector and happen naturally in private sector (except at top, where you have to pay to get the best).

Inflation allowed ( or actively encouraged) to stay above 3% (although of course it is always unexpected)

Devaluation of sterling through low interest rates leads to higher imported goods and energy costs.

Value of savings falling in real terms through FLS distortion of banking.

Cost of number one human need (shelter) not allowed to fall.

And that's just for people not on benefits.

I would love to hear a journo ask "Chancellor - how far are you intending living standards and disposable incomes to fall?"

Y