Incomes to fall 7.4% over the next 3 years

stonethrower

ISTL when you talk about house prices why don't you say they have fallen 8% in real terms YOY using the land registry data.

nicko33

Graham_Devon wrote: »

I just used the title of the BBC article for the title to the thread.

You didn't even get that right (unless the BBC have changed their title)

kabayiri

Road_Hog wrote: »

Actual incomes can fall, people get redundant and new employers are paying less for the same type of job. Or people retire and the job is regraded or a lower salary offered. It's not uncommon to see jobs advertised that would have paid more 10 years ago.

Plus, some organisations might shuffle jobs around the country to cheaper areas. I'm pretty sure the Beeb didn't come to Salford for the scenery! They will look to reduce staffing costs.

IveSeenTheLight

stonethrower wrote: »

ISTL when you talk about house prices why don't you say they have fallen 8% in real terms YOY using the land registry data.

When talking about house prices, I'm not a believer in the "real terms" argument.

Nobody buys properties in "real terms", they buy for a nominal amount.

It's only when you look back after buying do you consider if the assett has made a real term profit or not.

Of course as an investor, it's not quite as simple as that, because you are making a profit based on the deposit you have paid (I also include stamp duty and solicitor fees), the rental income received and any other associated deductions.

Certainly in "real terms" I'm getting a better return on my investment than I would have if I had put the money in the bank.

Even without HPI, the capital return is better than the deposit invested in a savings account, so the capital appreciation over the next 25 years will be a nice bonus.

Graham_Devon

IveSeenTheLight wrote: »

I understand that and they have "marketed" the title to be better headline grabbing.

When you look at the details and consider the timeframe already lapsed, you wonder how much meat is in the article.

Ask yourself: -

What was inflation (RPI) in the years 09-10, 10-11 and 11-12(so far)?
What was wage inflation in the same years?

Then we will see what the impact is expected for 12-13 with regards to the article prediction.

Your portraying yourself as repeating the headline grabbing sheep, drawn in by the journalism instead of considering the detail and making your own mind up.

Blimy, I was just starting a thread mate. I wasn't submitting a piece for a Nobel prize. It's the title of the article I was starting a thread about, therefore used that title.

I'm not going to start analysing titles, starting calculations on RPI over the past few years, JUST to type a title.

Sorry.

I've never known such a fuss over the title of a thread.

Sapphire

I know that no one in the company for which I work has had an actual salary increase for three years – several other private companies I know of in which this is also the case.

Thing is, salaries cannot keep rising indefinitely, and neither can an economy, to my mind. (If the latter happens in the UK this would just imply to me that many of us are continuing to live beyond our means, simultaneously continuing to squander the planet's resources in an unsustainable way.)

IveSeenTheLight

Graham_Devon wrote: »

Blimy, I was just starting a thread mate. I wasn't submitting a piece for a Nobel prize. It's the title of the article I was starting a thread about, therefore used that title.

I'm not going to start analysing titles, starting calculations on RPI over the past few years, JUST to type a title.

Sorry.

I've never known such a fuss over the title of a thread.

No problem Graham.

For those interested, according to this link

inflation in 2009 was 4% (bank of england has it as 4.61%
Inflation in 2010 was 5%.
We know that inflation in 2011 is running at roughly 5%

According to this link
Inflation from Jan 2009 till today is 13.0%

There's some good graphs here which shows wage inflation at between 3 and 4% (some may think thats too high)

looking at the ONS 2009 and 2010 figures, the mean average only increase 0.2%

So if you consider we have had 13.0% inflation with approx 8-9% (max) wage inflation, your looking at real term income already having reduce by 4-5% on average since 2009, therefore we are looking at 2012 - 13 having inflation 2.4% - 3.4% above wage inflation.

The government has also gave a speech regarding public sector pay increases being capped, so I reitterate the stance, is this really news?

DaddyBear

...... Not to worry, benefits will probably rise by 10% over that 3 year period.

geneer

IveSeenTheLight wrote: »

When you check the detiail the thread title is incorrect, but of course it makes a better headline for selling news

The pedanta-saurus roared again.

IveSeenTheLight wrote: »

Not really shocking.

No. Not really shocking.
The forum not-a-bull managed to put the most bullish spin on it. As expected.:rotfl:

macaque_2

kabayiri wrote: »

Plus, some organisations might shuffle jobs around the country to cheaper areas. I'm pretty sure the Beeb didn't come to Salford for the scenery! They will look to reduce staffing costs.

Basically I agree but this only works within limits. For example, what if the BBC had moved to Newcastle? Is it right that license payer's money is used to keep BBC employees in gated compounds like a UNICEF satellite station in central Africa (quite apart from the translation costs)? And do the viewers really want to see news presenters with blazing red eyes and cans of Tennants extra strength on the news desk at 7 in the morning?