Monday, January 7, 2008

The feel good spin doctors, just scraped the bottom of the barrel

Britons 'richer than Americans'

The average UK person will this year have a greater income than their US counterpart for the first time since the 19th Century, figures suggest

Posted by george monsoon @ 10:52 AM (1632 views)
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19 thoughts on “The feel good spin doctors, just scraped the bottom of the barrel

  • george monsoon says:

    Just to add to the above, it says somewhere down the article “No longer are we the ‘sick man of Europe’.”

    I wonder how many Alcoholics, Anorexics or schizophrenic people actually admit that they are ill and have a problem?
    More ministry of truth, spin and hype….

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  • Is this article saying that we are earning more money, but our money doesn’t buy as much because everything is more expensive here?

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  • It’s because the US house prices have slumped whereas ours haven’t
    yet
    but it is only a matter of time

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  • European-bear says:

    Su …exactly! What you need to do is measure the purchasing power index (PPI) where the nominal rates are adjusted for the costs of goods and services. When adjusted for the average salary per head in the UK it is $31,800 whilst that of the USA is $43,800 (PPIs are conventionally measured in $)…..its only the overvalued £ and undervalued $ that make the UK income per head look so good. In another 6 months when the £ has slid in value against the $ and EURO, the income per head in EURO or $ terms will be much less, whilst in £ it has stayed the same. EU countries ahead of Britain in terms of PPI are: Ireland, Denmark, Austria, Finland, Belgium, Swedan, Netherlands,and Germany. In all these countries your average wage will give you a better standard of living than the average wage in the UK, even if the nominal wage is higher.

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  • george monsoon says:

    the article does mention that although we earn more, our purchasing power is not as good as in the US, because they get more for their dollar than we get for our pound.

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  • European-bear says:

    Oxford Economics said that in 1993, following the last major recession and the UK’s ejection from the ERM, GDP per capita in the UK was 34% lower than in the US, 33% lower than in Germany and 26% lower than in France.

    But the £ has recovered strongly since ejection from the ERM and hence the improvement is entirely due to exchange rate fluctuations not to nay rela increase in the standard of living compatred to these countries

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  • Is this more evidence of the overvalued pound?
    I can’t believe our income per capita is higher than Germany. Maybe the average is skewed by a couple of Russion trillionnaires.

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  • It’s per-capital GDP. It’s the amount the economy produces. Since Gordon Brown takes a large chunk of that in tax, no, we’re not richer than the Americans. It ought to be post-tax purchasing power parity that we’re looking at, and we’re still a long way behind there.

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  • MWUAUU UUAAUU HAHAHHH HAHAHHHAHH

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  • cyril – it’s more evidence of what you can do with statistics. It is GDP divided by population number. Nowhere does it say what proportion of the GDP is received by the average person. Most of the GDP could indeed be those two trillionaires’ affairs…

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  • Maybe all the rich Americans (and friends) moving over here, in order to escape the mess that they have made over there, is beginning to influence our statistics?

    They’ll probably move somewhere else once their ideology as ruined our society too, so I’m sure its only temporary.

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  • We had the same kind of statistic printed over here (channel islands) recently, suggesting that we are teh wealthiest in the world. Unfortunately that figure would have been drastically skewed by all the rich tax dodgers. The actual local people struggle to survive or leave. A very annoying statistic, often quoted by people who live here and genuinely think it is the best place on the planet because they have never been anywhere else.

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  • This is just more rubbish for the economic right in this country to spew – Britain is booming, blah, blah, blah. The sheeple will either lap it up if it feeds their nationalistic and capitalistic point of view, or become even more annoyed because it reflects in no way their personal reality. At the start of 2007, I think most were in the first camp – at the start of 2008, it’s a different story.
    As i’ve said on here before, though, rather than questioning the government, banking and financial system and national values, the blame will be heaped onto ‘socialist policies’ (all policies from a Labour government are labelled socialist, no matter what the reality is), immigration, the ‘global credit crunch/US sub-prime’ (as if they were some unexplained and uncontrollable magical phenomenon) and ‘dole scroungers’.

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  • The BBC are a disgrace.
    Several times over the weekend I’ve listened to Brown continually making very strange comparisons between the US and the UK. The comparisons were totally irrelevent but what do we now have? We have the BBC singing from Mr Brown’s hymn sheet by publishing a feature piece about how we are better off than Americans.

    Cynical, cynical. We pay a license fee for this political bottom-kissing by the BBC. It’s an absolute disgrace and more than a passing coincidence.

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  • new user 2007 says:

    It is actually looking at GDP per capita. This means it takes output/spending and has divided it between the population. Even if the GDP and population figures are accurate, the interpretation is distorted, I think, as GDP relies on output or consumption. Either way, this requires demand. This demand has been driven by debt. The fact that the Report leaves this crucial fact out is odd.

    We have indeed seen output/ spending rise, but not from our actual income to fund this. Also, it does not say anything about income distribution…100 people could all have an output of 1mn on average (100mn in total) but the top 10 people could represent 50mn of that and the other 90 the remaining 50mn. The same numbers can be used to explain what has happened to the UK in terms of income as well i.e. the top 10%-25% are getting more and more of the pie.

    So the rich buy what they can afford, and the poor want to copy the rich and buy on credit. That sounds like a fairly “sick” person to me. I am not even saying weak in a rich people are bad necessarily bad kind of way, rather, that this method of growth is unsustainable.

    Germany is sicker than us as its population is not debted to beyond its means i.e. it is not as sick. The US even now has less debt by most measures/ratios, and it has maintained a diverse economy (unlike ours…jobs created for estate agents and people in finance to keep the debt cycle bubbling and moving).

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  • I saw this on the BBC website earlier and I’m glad its caused a stir on here…. an absolutely disgraceful piece of spin by the BBC.

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  • it_is_going_with_a_bang says:

    Even if there is an ounce of truth in any of it – what is the point of having more ‘money’ if you can’t get as much for it, i.e. things are more expensive.

    It may aswell be monopoly money if you are not going to ‘measure’ what you can buy with it.
    Ah … but that would bring inflation into the argument …. which as why know hardly exists …. does it ??!!!

    No longer are we the sick man of europe. We shall see.

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  • It-is-going-with-a-bang…

    “what is the point of having more ‘money’ if you can’t get as much for it, i.e. things are more expensive.”

    Precisely! 🙂

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  • BBS journalism has hit rock bottom!

    How in the same article can you possibly say:

    Britons ‘richer than Americans’
    And
    “However, because goods and services are cheaper in the US, Americans will have stronger purchasing power, it added. ”

    I think the ‘richer’ part of the title should be in quotes on its own. This is so poor it beggars belief!

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