Pay growth greater than inflation for the first time in five years
NeverEnough
Posts: 3,052 Forum Member
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More good news on the economy
http://www.bbc.co.uk/news/business-30019259
According to the article inflation is expected to be below 1% whilst pay increases are expected to top 3% in the next year.
Light at the end of the tunnel at last
http://www.bbc.co.uk/news/business-30019259
According to the article inflation is expected to be below 1% whilst pay increases are expected to top 3% in the next year.
Light at the end of the tunnel at last
0
Comments
Of course, when the global bubble pops we will be back to square one.
inflation is low because many companies are not passing on their costs to the public.
People are not spending, so prices fall.
Then people wait to see if prices fall lower so they don't spend, so prices fall again. And then you have deflation!!
Which is nearly as bad as excessive inflation as companies don't get the income to invest and Tax receipts from VAT are not generated.
And it all starts again!!!
Bankers and corporate CEOs who earn more can get 10 per cent pay rises - the majority get no rise - and end get a rise on average on 1.3 per cent.
People's biggest expense is buying a house - they have gone up 10 per cent in a year. Yet inflation as officially measured is only 1.2 per cent.
Can anyone in the real world take these artificial inflation figures - picked to minimise the rate - seriously.
But no one goes out a buys a house every day.
But agreed, these are just statistics - and you cannot divine how individuals are affected based upon an average - it is merely one of the measures of how the economy is doing. Which is why I also do not support your sweeping generalisation (BIB) since it has no basis in fact - suggesting that all CEOs are getting 10% and the majority are getting zero.
Good Job George !!!!
http://www.standard.co.uk/news/politics/david-camerons-hopes-of-feelgood-election-boost-are-dashed-as-80-per-cent-say-recovery-is-not-helping-9858273.html
There are 3 reasons why people don't spend
1)They don't have he money to spend.
2)People are keeping hold of their money and saving instead.
3)They are spending money on essentials only.
So even if prices fall rock bottom, people currently just don't want to spend their money. So what will the retail companies do next?
Also internet prices are far cheaper than retailers can match.
SULLA, are you trying to be sarcastic? Cause it's hard to see if you're joking with text alone sometimes.
Thorr, yeah not everyone buys a house every day but almost most average people can't even afford one. Also on the point about bosses, most of their bonuses are worth a couple times of an average earner and how they seem to be able to get bonuses annually whatever happens to the economy or how well a company does.
Let us consider the Millions who have "found employment" under this Tory led government. Let's imagine that the few hours work supplied by your Zero Hours Contract attracts 3% wage inflation in the near future. The remainder of your income, the vast majority of your income, will increase by 1% if you are lucky.
What is the average % increase on your total income?
Er....The answer seems to be a tiny fraction more than 1%......unless of course you have opted to use creative maths or you are someone who tends to confuse 50% with 100%.......
In real terms the vast majority of the population have less disposable income now than before the recession started.
You people need to be grateful that we didn't have another four and half years of Labour government. We would now be bankrupt.
That's a big assumption and we'll never know how a Labour government would have really done. However it's probable that we'll find out, as Labour is likely to be in government, even though it'll be a close GE.
With all that said, you should note this though-
http://www.telegraph.co.uk/finance/economics/11187727/Its-time-to-come-clean-about-our-national-debt.html
You do realise that we have had to make massive payments on the enormous debt inherited from Labour.
We could have made it off quicker if we had slashed pensions, benefits and the NHS.
Is this what you would have preferred ?
But isn't that inflationary?
Not if accompanied by improvements in productivity where the reduced unit cost can be used to offset the increased cost of wages.