The Resolution Foundation produced a new report yesterday entitled 'The State of Living Standards'. This post is in no sense meant to be a review of a complex report, more a sign post as to its existence.
That said, this graphic from it is telling:
And don't think they believe things will get better. As they say, the report:
finds that growth in disposable income for the typical household is likely to be modest, barely positive in 2015-16 and less than one per cent a year for each of the following three years. As a result, despite improving, typical living standards will still be 3.5 per cent lower in 2018-19 than they were before the financial crisis of 2008, only just inching above the level they were last at in 2005-06.
I have a feeling they're being optimistic; indeed they suggest that themselves within the report, admitting that they have chosen forecasting methods that might incline that way. And this is still the outcome.
Some recovery.
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Surely it is time for the ‘growth’ myth to end. A recent book called ‘Enough is Enough’ calls for a ‘stable state’ approach – though this would require a sea change, psychologically. There is a short film about the book on this page:
http://www.positivemoney.org/2014/01/enough-enough-full-film/
There is little to no growth coming from wages or investment. It is mainly coming from borrowing and consumption. Recent figures show household borrowing at £1.4 trillion. This is being helped along in no small part by the government-backed Help to Buy housing bubble.
This “recovery” is built on foundations of sand.
And what happens to things built on sand when there is flooding…………? Especially when the agency responsible for handling these things is shedding its own experts due to the spending cuts.
Still, its nice to see all the Conservative voters in constituencies flooded by the Thames getting stuck in to the government for not providing enough help quickly enough. How very nanny statist of them!
With little savings remaining, things like this seem to be doomed….especially as the rich have their assets non-EU:
http://www.zerohedge.com/news/2014-02-12/europe-considers-wholesale-savings-confiscation-enforced-redistribution