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Boe's Low Inflation Economy In Action

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We should thanks our lucky stars for low inflation. Same is happening to small retail as is happening to manufacturing and increasingly services.

Big busuiness must be laughing like a drain, economic policy is doing for it what pricing cannot. Local councils are doing their bit too by making city centres difficult to access with expensive parking.

Small businesses pro-rata employ far more people across all the skills/services ranges than large. Small business are getting to the point where they simply cannot even cover the overheads which are inflating at an enormous rate.

Economics of the mad house.



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15:00 - 09 June 2006

Shops are rapidly disappearing in the centre of Uckfield because rents are too high, traders are complaining.


It is claimed the market value of rents have recently soared, reaching as much as £20,000 a year in some outlets at the bottom of the town, making it impossible for smaller, independent outlets to break even.


She said being at the top of the steep High Street and the fallout from last summer's Church Road roadworks meant she had been struggling to break even as it was, and the rent rise from £8,500 to nearly £13,000 was the last straw.

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These shops are between a rock and a hard place, they're being squeezed because of wider commercial property speculation, institutions and funds have paid far too much for these properties and are suffering poor yields so the natural reaction is to push up rents, at the same time their retail tenants have over-expanded and suffered price deflation and now higher import costs, taxes and overheads are pressuring margins as costs cannot be passed on to the consumer, as the latter are already mired in debt with problems of their own.

All this could be completely expected, the financial bubble economy is killing what's left of the real economy.

Edited by BuyingBear

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  • 301 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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