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The Wages Must Rise To Support Recovery/housing Thread


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We had a student lifestyle with £80k+ household income where 75% of our money was spent on the mortgage (£880) + overpayment. 2009 turned up, then its min wage jobs and unemployment, living was not to close to the edge surprisingly (due to overpayment). My other half suddenly realised hang on once the mortgage is paid off we can work less!

With old friends dying in their 60’s and a few others with cancer. Screw consumption ,debt, keeping up appearances. It’s a 3 day week for us at 45.

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  • 2 weeks later...

No the solution is lower mortgage rates, lower savers' rates, more underwriting by the taxpayer, whatever it takes to keep the HPI plate spinning ... re-introduce MIRAS (makes not real difference but has the right sentiment - helping hard-working families buy their own home). Wages do not need to rise for house prices to rise, there is now no connection between house prices and wages as you see if you look at London ... prices have risen by 30% in the last few years and wages by at most 3%.

The UK's enormous and enduring trade deficit suggests that our incomes are already much too high!

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We have to ask ourselves....who or what is more important? The hard working productive people of this country who can only afford a box if that to live in, the foreign investors/foreign money or the banking fraternity and the protection of their capital?

Or is it necessary for prime land and prices to increase many times the annual rate of inflation year after year to prevent the whole escapade collapsing in a heap on top of itself........how long does it take to uncover all the stones and for the banks to become safe again so that we can resume business as usual? ;)

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We have to ask ourselves....who or what is more important? The hard working productive people of this country who can only afford a box if that to live in, the foreign investors/foreign money or the banking fraternity and the protection of their capital?

An easy question to answer once you realize that the levers of power are more or less controlled by the banking fraternity. The man from Goldman Sachs now runs the bank of England- and the ECB.

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An easy question to answer once you realize that the levers of power are more or less controlled by the banking fraternity. The man from Goldman Sachs now runs the bank of England- and the ECB.

....this is what is holding us back, the pay rises and employment levels that are so desperately wanted....Europe is not consuming enough to satisfy our needs. ;)

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  • 2 weeks later...

Minimum wage has run its course says LPC founding Chairman

Proposals for higher wage floor for sectors that can afford it (non-mandatory) or higher rates for regions (i.e. London)

http://www.ft.com/cm...?siteedition=uk (might be ££)

Higher rates for London is an interesting one since I personally see this as pro-cyclical. We have 1 central bank for UK with 1 interest rate and 1 set of tax laws so whilst I wish everyone on low pay was better paid I'm not personally convinced why landowners in London, who are already the wealthiest in the UK should see national tax receipts by directed towards them. But I accept I may not fully understand this process. Perhaps with land reform and wealth taxes in London, or a London specific interest rate for land development it would work better.

Anyway, clearly feeds into my thinking that wage rises are coming next........

Edited by R K
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Minimum wage has run its course says LPC founding Chairman

Proposals for higher wage floor for sectors that can afford it (non-mandatory) or higher rates for regions (i.e. London)

http://www.ft.com/cm...?siteedition=uk (might be ££)

Higher rates for London is an interesting one since I personally see this as pro-cyclical. We have 1 central bank for UK with 1 interest rate and 1 set of tax laws so whilst I wish everyone on low pay was better paid I'm not personally convinced why landowners in London, who are already the wealthiest in the UK should see national tax receipts by directed towards them. But I accept I may not fully understand this process. Perhaps with land reform and wealth taxes in London, or a London specific interest rate for land development it would work better.

Anyway, clearly feeds into my thinking that wage rises are coming next........

The greedy feckers are not going to pay more than they must...where do you see the altruism coming from?

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Just can't see wages rising at 3% plus and the bond market smiling at less. The BoE will look total ***** if they hold rates at 0.5 while we all get inflation busting pay rises......Any pay increase will be offset by even higher costs and higher debt servicing costs. Lower asset prices is the only way out. Debt deflation or total collapse....

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Swapping the inspirational carrot of owning a place outright for the maximum debt slave is foolish. Actively pushing prices above the previous bubble while using every media outlet to promote it, is beyond forgiveness. The population that creates, produces, and innovates under the banner of bloated corporations. Where is their carrot now. They have taken away THE WHOLE POINT of having a good salary (house price/pension). I wonder how many will put up with easier jobs and go part time. An export led recovery is the worst joke of all.

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Just can't see wages rising at 3% plus and the bond market smiling at less. The BoE will look total ***** if they hold rates at 0.5 while we all get inflation busting pay rises......Any pay increase will be offset by even higher costs and higher debt servicing costs. Lower asset prices is the only way out. Debt deflation or total collapse....

Obviously true. A minimum wage hike is just the first of many helicopter drops on the way to a hyperinflationary default.

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World risks era of slow growth, high unemployment - OECD

SYDNEY Fri Feb 21, 2014 8:33am IST

http://in.reuters.co...EA1K01N20140221

Guy on the radio was claiming UK productivity way way down since 2007, per worker. And business investment really slumped. Said we need more business investment and to consume less.

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It;s been taken down now.

You just need to add an l to the end to the link. I'm wary of the findings too, although I only glanced at it. Perhaps it is partially true, but for fewer numbers. Or with possibility of reversals. Know of family who experienced it before in 80s and 90s. When you cut jobs you should be able to pay better performers higher market rates, by my way of thinking.

http://www.profeng.org/salaries.html

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