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Not raising rates is damaging the economy
Comments
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The issues as highlighted by Saga (previously) as the post war baby boom generation are now hitting the peak. From a report published back in February.Key findings of the Saga Quarterly Report:
* Over-50s quality of life has worsened over the past year.
* 50-59 year-olds and the lowest socio-economic groups across all over 50 age bands are having the toughest time.
* Inflation is higher for 50-64 year-olds than for the rest of the population.
* Unemployment for the over 50s is 69 per cent higher than it was pre-recession, compared with a 55 per cent rise across all age groups.
* Long-term unemployment has hit the over-50s hardest, with 43 per cent on the dole for more than a year (compared to 27 per cent of 18-24 year-olds).
* Rising cost of living is biggest worry for over-50s (63% more concerned than a year ago).
* Falling income from savings worries over half (54%) of over 50s.0 -
lemonjelly wrote: »The government has redefined poverty for pensioners this week too, re-linking it to rpi.
That really annoys me, given that they are tinkering with pensions and linking deferred pensions to CPI. That includes in the private sector.Fuel and food cant keep going up forever without money increase following otherwise demand will fall.
EG look at oil last week, fell 10% as demand in america fell due to price.
I don't think we talk enough on here about the impact of market shocks. For example, a big part of the cotton price inflation was the flooding that hit so much of Asia last year. Similar problems with drought and flooding across grain producing areas and floods in Australia. We've had a disproportionately high level of shocks in the last year or so, what with La Nina weather, earthquakes, tsunamis and the MENA problem and these should start to settle, particularly for basic food commodities. Having said that, there will continue to be an ongoing issue around food security.On a connected theme, the tube workers have just negotiated a pay deal based on RPI Plus, if this type of settlement becomes commonplace then we will get into an inflationary spiral.
I mentioned before in passing, but I was speaking with finance peeps recently and their view is that the government is now open to a slightly higher level of inflation than the norm as it allows them to inflate their way out of debt while funding their repayments cheaply. I don't think outside of hardline unions though there will be lots of RPI plus demands. For everyone getting above RPI met, there will be others getting no pay review - again. I don't think we're at an inflationary spiral point or near it, though clearly it is something the government needs to keep an eye to.Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
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Graham_Devon wrote: »pensioners spending money in the economy creates jobs. That's the entire point of the article.
No, the entire point of the article is SAGA issuing propaganda to support their members interests.
Nothing wrong with that.... It's what special interest groups are supposed to do, but don't for one moment mistake it for an objective analysis of the situation from a competent observer.
For that, you need to look elsewhere.
Like here......
http://business.scotsman.com/economics/Blanchflower-says-interest-rates-will.6765437.jp“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
So if a lot more pay deals are agreed based on inflation, would you then think rates should be raised?
Don't know about Really2, but I certainly would. A wage driven inflationary spiral is something to be avoided.
Of course, the definition of "a lot" is probably contentious....
I'd personally define it as the vast majority of the working population getting pay rises of CPI or higher..... So somewhere over 20 million people a year.
Not just a few thousand people, a few tens of thousands of people, a few hundred thousand people, or even a few million people.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
In the mean time 1/4 of under 25's are out of a job and I am sure they would love rates to go up. Lowering their chance of getting another job just so someone with savings can spend a bit more.
Quality.
The economy involves more than just over 50's with savings graham.
I would of thought lording job creation for under 25's was more important than trying to get those with high cash reserves more interest so they have a better lifestyle.
Maybe I am getting this economy bit wrong, but the biggest reducer of spending is unemployment not pensioners not making as much interest?
Ive got savings and would like to see interest rates rise and im not over 50, im not really saving towards a better lifestyle i just want to put a roof over my head and these low rates are certainly not helping my deposit increase.
Its not just pensioners who have savings.0 -
Ive got savings and would like to see interest rates rise and im not over 50, im not really saving towards a better lifestyle i just want to put a roof over my head and these low rates are certainly not helping my deposit increase.
Its not just pensioners who have savings.
What interest rate are you obtaining on your savings?0 -
Thrugelmir wrote: »What interest rate are you obtaining on your savings?
Are you asking so you can help me find a better rate.0 -
Are you asking so you can help me find a better rate.
Potentially you may be able to get a better rate.
You need to be a "tart" and shop around to get the best rates.
But we can't help you if you keep it a secret :-)0 -
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And with these better rates will i be able to get at my savings instantly if i see a house i want.
Not the question a person confident prices will continue to fall would ask....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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