Telegraph: wages collapse at fastest rate in 60 years

System

Alan_M wrote: »

and there was I thinking this was a forum for discussions and opinions...are we to only post fact now?

No, but we all grow tired of people stating their little opinions as fact. If it's an opinion then type it like one, "I believe that...", "I think that...".

Not "This will happen...".

I don't have any facts of my own which is why I don't type as if I do

amcluesent

>I just don't see any Government raising interest rates while in recession.<

The incoming Tory govt in June 2010 will have to grapple with inflation after Clown's QE and the collapse in the £. As USA/China/India come out of recession, oil and commodity prices will be rising quickly which will further raise all prices. Raising rates will be required to avoid inflation approaching 10%.

Clown's 2009 farce of a budget failed to tackle any of the structural problems in Britain's economy, he's been happy to run a 'scorched earth' policy so that the Tory's face a nightmare of stagflation.

Dan:_4

amcluesent wrote: »

>I just don't see any Government raising interest rates while in recession.<

The incoming Tory govt in June 2010 will have to grapple with inflation after Clown's QE and the collapse in the £. As USA/China/India come out of recession, oil and commodity prices will be rising quickly which will further raise all prices. Raising rates will be required to avoid inflation approaching 10%.

Clown's 2009 farce of a budget failed to tackle any of the structural problems in Britain's economy, he's been happy to run a 'scorched earth' policy so that the Tory's face a nightmare of stagflation.

The Tory party are in favour of the current interest rate. They will rise, but it will be in line with the rest of the world base rates, and this is unlikely to happen while the world is still batteling recession, regardless of inflation.

macaque_2

tomterm8
The private sector took the full force of the fall in weekly earnings, down sharply by 7.7pc at £463.50, while average weekly earnings in the public sector actually rose by 3.2pc to £442.90.

If tough decisions are not made soon, tough solutions will be forced on us. The country is getting poorer at an alarming speed. What incentive can there be for people get a proper jobs when the public sector offers such easy and well paid pickings. As a matter of urgency, the government needs to:

(1) Slash salaries in the public sector
(2) Get rid of final salary pension schemes in the public sector
(3) Slash the public sector head count.

Lets get the country back to work!

the_ash_and_the_oak

kinda feeling if the public sector was so great mayb we should get jobs there

StevieJ

thegibdog wrote: »

The banks are not willing to lend money for houses at cheap rates and with small deposits because house prices are falling and are likely to continue to do so. Better mortgage deals will come on the market when house prices level off so I don't think it's a particularly good time FTBs to be taking out a mortgage.

It's all a bit complicated for me If they lent the money, house prices wouldn't fall anymore Oh what a tangled web we weave when we first practise to deceive.

macaque_2

the_ash_and_the_oak wrote: »

kinda feeling if the public sector was so great mayb we should get jobs there

That is more or less what is happening. The private sector have recently shed another 100,000 jobs and taken pay cuts whilst the public sector have given themselves a pay rise and recruited another 30,000 people. So many people are now dependant on the public purse (both public and private sector employees) that the economy is getting into severe difficulties.

lostinrates

tomterm8 wrote: »

The Office for National Statistics said average weekly earnings fell 5.8pc compared with the same month last year, to £459.10. The private sector took the full force of the fall in weekly earnings, down sharply by 7.7pc at £463.50, while average weekly earnings in the public sector actually rose by 3.2pc to £442.90.

http://www.telegraph.co.uk/finance/economics/5245729/UK-wages-collapse-at-fastest-rate-in-60-years.html

Its not just loss of earning though, but loss of ''perks'' or benefits. Gym memebership is a nice perk but not essential, for some though, a season ticket loan is a substantial help.

Heyman_2

macaque wrote: »

If tough decisions are not made soon, tough solutions will be forced on us. The country is getting poorer at an alarming speed. What incentive can there be for people get a proper jobs when the public sector offers such easy and well paid pickings. As a matter of urgency, the government needs to:

(1) Slash salaries in the public sector
(2) Get rid of final salary pension schemes in the public sector
(3) Slash the public sector head count.

Lets get the country back to work!

So what you're saying is -

(1) Slash the wages of 6 million people in the middle of a recession.
(2) Risk the wrath of the Unions and a national walkouts over pensions...again (they've already been down this road)
(3) Slash public sector employment sending unemployment through the roof at a time when the Private Sector is on its knees. Also resulting in huge cuts in public services presumably whilst keeping Council Tax at the same level. Happy for your rubbish to be collected once a month and for potholes to start appearing in the main roads then?

Now I'm all for tough decisions but your suggestions would make things considerably worse on the ground and would be political suicide for any government, let alone one which is already expected to lose the next election.

macaque_2

Heyman wrote: »

So what you're saying is -

(1) Slash the wages of 6 million people in the middle of a recession.
(2) Risk the wrath of the Unions and a national walkouts over pensions...again (they've already been down this road)
(3) Slash public sector employment sending unemployment through the roof at a time when the Private Sector is on its knees. Also resulting in huge cuts in public services presumably whilst keeping Council Tax at the same level. Happy for your rubbish to be collected once a month and for potholes to start appearing in the main roads then?

Now I'm all for tough decisions but your suggestions would make things considerably worse on the ground and would be political suicide for any government, let alone one which is already expected to lose the next election.

These changes have to come sooner or later. The wealth generating side of the economy can no longer afford the huge dead weight of an unproductive public sector. I agree that the cure is going to be very painful but ignoring the problem is just going to make things worse.