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Wage stagnation over decades

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    Wage stagnation over decades

    Tell us something we don't know.

    BBC News - TUC: Wage stagnation over decades as income gap widens

    Many people in middle and low income jobs have barely seen any improvement in their incomes over the past 30 years, a report from the TUC says.
    I've seen graduate engineering jobs only a few grand above what I started on as a graduate myself 14 years ago.

    The housepricecrash brigade keep going on about 'wait for it', massive crash is coming (well no crash in Scotland anyhow) wages are 9 times the average house price etc.

    House price is @%$£ all to with earnings. When will people learn?
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    Originally posted by scooterscot View Post
    Tell us something we don't know.

    BBC News - TUC: Wage stagnation over decades as income gap widens



    I've seen graduate engineering jobs only a few grand above what I started on as a graduate myself 14 years ago.

    The housepricecrash brigade keep going on about 'wait for it', massive crash is coming (well no crash in Scotland anyhow) wages are 9 times the average house price etc.

    House price is @%$£ all to with earnings. When will people learn?
    I think we will see that once interest rates rise, people will be unable to afford the mortgages on their properties which are 20 x their annual salary. Once this happens there should in theory be a big crash. How long can interest rates be kept at 0.5% for?

    Comment


      #3
      Originally posted by scooterscot View Post
      House price is @%$£ all to with earnings.
      There is direct link since mortgages are linked to how much people earn (sadly gross rather than net).

      Two reasons for fast increase in house prices:

      1) loan multiples gone through the roof
      2) people who should have never been given mortgage were getting it

      Comment


        #4
        House prices went through the roof because Labour created millions of non jobs in public sector and these people went crazy with the mortgage multiples. Public sector salaries have undergone significant distortion and will try to stay there.

        I remember reading on forums where people were so desperate to move up the property ladder, they were budgeting on 200£ spending cash per month after mortgage etc.
        Vote Corbyn ! Save this country !

        Comment


          #5
          Part of the problem is the perception of human beings as resources. This leads naturally to the idea that they can be used up, bought more cheaply etc. While this may have short term benefits for a particular business it's no way to organise society.

          The use of GDP as the sole arbiter of progress has a lot to answer for.
          While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'

          Comment


            #6
            Originally posted by NorthWestPerm2Contr View Post
            I think we will see that once interest rates rise, people will be unable to afford the mortgages on their properties which are 20 x their annual salary. Once this happens there should in theory be a big crash. How long can interest rates be kept at 0.5% for?
            Don't know ask Japan.

            Interest rates will remain at historic lows until enough people have jobs.
            "You’re just a bad memory who doesn’t know when to go away" JR

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              #7
              I think the "plan" is for house prices to return to the mean via inflation and not via price reduction.
              ...my quagmire of greed....my cesspit of laziness and unfairness....all I am doing is sticking two fingers up at nurses, doctors and other hard working employed professionals...

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                #8
                Originally posted by Lockhouse View Post
                I think the "plan" is for house prices to return to the mean via inflation and not via price reduction.
                They are trying to support markets by enticing buyers to get onto the ladder whilst paying current low interest rates, but it's crazy strategy given that even those who gone into market knowing they will pay 6-7% mortgage, but now they say can't increase rates from 0.5% ffs, so what would those who buy houses say when rates go up to 5%?

                Comment


                  #9
                  Originally posted by AtW View Post
                  They are trying to support markets by enticing buyers to get onto the ladder whilst paying current low interest rates, but it's crazy strategy given that even those who gone into market knowing they will pay 6-7% mortgage, but now they say can't increase rates from 0.5% ffs, so what would those who buy houses say when rates go up to 5%?
                  How can those banks providing mortgages at some low percentage above the BoE rate afford to keep doing so, when inflation is raging at 5% or more (and probably much, much more)?

                  Comment


                    #10
                    Originally posted by TimberWolf View Post
                    How can those banks providing mortgages at some low percentage above the BoE rate afford to keep doing so, when inflation is raging at 5% or more (and probably much, much more)?
                    Inflation is irrelevant in this case.

                    Banks made good money when margins on mortages were like 1% (5% rates - 6% mortage), now their margins are MUCH higher - 0.5% rates, but mortages I think 3-4% at lest.

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