Have we experienced a real rise in living standards as Osborne claims?

cepheus

Osborne claimed on Wednesday that real household disposable income..."will be higher in 2015 than in 2010. And it confirms they are set to grow strongly every year for the rest of the decade". However, is this the relevant measure? This does not account for VAT, which is subtracted from disposable income to obtain “post-tax income”, and any non-cash benefits, such as health, education and social services. These have since suffered substantial cuts from a chancellor delivering austerity medicine. It is likely that the really relevant number, final income, has increased by less than disposable income.

In terms of the official figure, the chancellor’s has brought real per capital disposable income back to where it was when he took office – and he needed almost five years to do this. This is not impressive.

Summarised from: https://theconversation.com/wages-and-cuts-undermine-osbornes-living-standards-boast-39096

John Weeks Professor Emeritus at SOAS, University of London

DISCLOSURE STATEMENT - John Weeks does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

HAMISH_MCTAVISH

cepheus wrote: »

a chancellor delivering austerity

Austerity? Really?

the chancellor’s has brought real per capital disposable income back to where it was when he took office – and he needed almost five years to do this. This is not impressive.

Within the context of the global economic turmoil and aftermath of the financial crisis, to be able to deliver a return of living standards to where they were 5 years ago, while also materially reducing the deficit and achieving economic growth and falling unemployment is not just impressive, it's little short of a miracle.

Cyberman60

HAMISH_MCTAVISH wrote: »

Austerity? Really?






Within the context of the global economic turmoil and aftermath of the financial crisis, to be able to deliver a return of living standards to where they were 5 years ago, while also materially reducing the deficit and achieving economic growth and falling unemployment is not just impressive, it's little short of a miracle.

Absolutely, but I fear so many voters have no clue whatsoever what an annual deficit is and what the country has had to go through or the reasons why. They simply believe that the Coalition are nasty. It will thus be a big wake-up call if Labour and SNP get in as we scrape the bottom yet again under socialist financial ignorance and incompetence. :eek:

Marktheshark

What nobody is accounting for is the interest payment on the monstrous Debts Local Councils have built up spending on "jolly projects" that had little to do with what the council is tasked to do, well they have spiralled out of control and the only way to service these debts is to cut what they should be spending the money on.
A rise in interest rates and things are going to get very interesting indeed, then you will see what austerity looks like.

Generali

cepheus wrote: »

Osborne claimed on Wednesday that real household disposable income..."will be higher in 2015 than in 2010. And it confirms they are set to grow strongly every year for the rest of the decade". However, is this the relevant measure? This does not account for VAT, which is subtracted from disposable income to obtain “post-tax income”, and any non-cash benefits, such as health, education and social services. These have since suffered substantial cuts from a chancellor delivering austerity medicine. It is likely that the really relevant number, final income, has increased by less than disposable income.

In terms of the official figure, the chancellor’s has brought real per capital disposable income back to where it was when he took office – and he needed almost five years to do this. This is not impressive.

Summarised from: https://theconversation.com/wages-and-cuts-undermine-osbornes-living-standards-boast-39096

VAT changes are included in cost of living changes (RPI/CPI).

Health spending was 'ring fenced'.

Your real argument is that you don't like Tories and are scrapping around for evidence to support your viewpoint.

gazter

Generali wrote: »

VAT changes are included in cost of living changes (RPI/CPI).

Health spending was 'ring fenced'.

Your real argument is that you don't like Tories and are scrapping around for evidence to support your viewpoint.

Soon as i read him talking about 'cuts' to nhs i glazed over. Anyone who claims the NHS is being cut is ill informed, or knows the truth and is just playing to the ignorance of others. The more nuanced arguments are just us duplicitous, but that the government is spending more but its all going into the back pockets of their supporters etc zero hour contracts, bedroom tax foodbanks

snore snore snore

PasturesNew

Whether people are better, or worse, off will be individual. Averages mean nothing.

Personally, I am a lot worse off as my income fell off a cliff and interest rates dropped like a stone ... and that's before any prices might have gone up.

ruggedtoast

I certainly haven't. I can't really see how anyone in the Tory party can have any comprehension of what a rise in living standards means to an average earner. While Cameron gazes into his £2000 fridge debating whether that foie gras has been open for two days or three, what has he got, or ever will have, in common with people who have had to work for a living.

They probably think that an extra £2.32 a month actually does make a difference to the proles.

CLAPTON

ruggedtoast wrote: »

I certainly haven't. I can't really see how anyone in the Tory party can have any comprehension of what a rise in living standards means to an average earner. While Cameron gazes into his £2000 fridge debating whether that foie gras has been open for two days or three, what has he got, or ever will have, in common with people who have had to work for a living.

They probably think that an extra £2.32 a month actually does make a difference to the proles.

It is of course a natural law of nature and also supported in many religious texts and supported by all ill educated people, that one should get richer each and every year without any actual effort and irrespective of external circumstances.
Unfortunately the exists of a single tory upsets this natural order of things.

shame really

chewmylegoff

ruggedtoast wrote: »

I certainly haven't. I can't really see how anyone in the Tory party can have any comprehension of what a rise in living standards means to an average earner. While Cameron gazes into his £2000 fridge debating whether that foie gras has been open for two days or three, what has he got, or ever will have, in common with people who have had to work for a living.

They probably think that an extra £2.32 a month actually does make a difference to the proles.

Yeah, much like Milliband snuffling hampstead dinner party rhetoric through his adenoids whilst brewing up a pot of lapsang souchong in his second kitchen, really.

Jennifer_Jane

I have! Council tax freezes; petrol duty freezes; personal allowance increased; inflation down.


Could I be better off with higher interest rates: not really, as there have been great bank switching incentives; and fuel costs down.


Yes, VAT went up, but buying things that are VAT-able is a choice, the VAT on fresh food is still zero, and VAT on energy bills is still 5%.


So, on a fairly low income, I'm doing OK. I haven't mentioned the triple-lock on pensions because I don't get the full Basic State Pension, but my pretty small Company pension has had fairly generous increases.


To me, all the party leaders are privileged. If someone was sent by his parents to Eton, and thus has been taught it's his right to be leader, that's no different from a socialist person, bringing up his sons in an intellectually-privileged environment, and being taught it's his duty to lead.