standard of living to plunge at fastest rate since 1920s BOE Merv says

MrPThomas

All these cuts havent come in yet. Most people havent had a pay rise in 5 years.

Wages are going up on average 2.2%, inflation is about 4% and going North.

http://www.telegraph.co.uk/finance/economics/8282354/Bank-of-England-chief-Mervyn-King-standard-of-living-to-plunge-at-fastest-rate-since-1920s.html

Households face the most dramatic squeeze in living standards since the 1920s, the Governor of the Bank of England warned, as he reacted to the shock disclosure that the economy was shrinking again.

RDB

MrPThomas wrote: »

All these cuts havent come in yet. Most people havent had a pay rise in 5 years.

Wages are going up on average 2.2%, inflation is about 4% and going North.

http://www.telegraph.co.uk/finance/economics/8282354/Bank-of-England-chief-Mervyn-King-standard-of-living-to-plunge-at-fastest-rate-since-1920s.html

Households face the most dramatic squeeze in living standards since the 1920s, the Governor of the Bank of England warned, as he reacted to the shock disclosure that the economy was shrinking again.

Refreshingly honest him saying that.

crazygaijin

Here is Merv King speaking the truth. Usually people like him talk up green shoots.

I applaud him he sets a good example for his counterparts in other countries.

He wants to prepare the people for hard times to come.


Jim Rickards talks about what Merv said here, he agrees with the Bank of England governer.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/1/27_Jim_Rickards_files/Jim%20Rickards%201:27:2011.mp3

Loughton_Monkey

As honest and frank as Merv may be, what can he do about cuddly Bob Crow (for example) and all the other union bosses who will now be holding the country to ransom? Time for more stringent strike laws?

ultrawomble

RDB wrote: »

Refreshingly honest him saying that.

Indeed, but he can afford to. I doubt his living standards are going to be affected too much:

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7142485.ece

StevieJ

Loughton_Monkey wrote: »

As honest and frank as Merv may be, what can he do about cuddly Bob Crow (for example) and all the other union bosses who will now be holding the country to ransom? Time for more stringent strike laws?

A tired old expression belonging to the 70's and certainly doesn't describe the neutered poodle of a Union movement that we now have, but any excuse for new union laws and kicking that old dog when he is down and out.

nicko33

MrPThomas wrote: »

Most people havent had a pay rise in 5 years.

Wages are going up on average 2.2%

just the bankers bringing the average up then if most people haven't had a rise?
Minimum wage has increased every year (+17% in last 5 years)
Public sector not had a raise in 5 years?
I've had a raise in 4 out of the last 5 years - in manufacturing industry

crazygaijin

nicko33 wrote: »

just the bankers bringing the average up then if most people haven't had a rise?
Minimum wage has increased every year (+17% in last 5 years)
Public sector not had a raise in 5 years?
I've had a raise in 4 out of the last 5 years - in manufacturing industry

Has your rise been more than real inflation?

IronWolf

Wasn't the 1920s a brilliant decade of prosperous economic growth??

Surely he means early 1930s.

julieq

Alarm bells ring at any headline including the words "plunge" and "1920s".

What he means, as I think the Daily Mash put it earlier in the week when they reported it, is something of the order of "Living standards to fall to 2003 levels".

I think we'll cope.

MrEnglish

Of course we will cope, but what effect will this have on house prices? Already very very difficult to raise enough money to buy an average house. It is going to get a lot more difficult.