I've heard the post you quoted so many times from older family and friends. The "man up" doesn't stack up when they had a 10% mortgage but the value was barely £25,000 - the monthly payments of which would be £219. I've got 2% on a £200k loan and the payments are close to £750.
2022 mini-budget discussion
- Thread starter Harlequin
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Well you are, whether you see it or not. If you don't see any alternatives then you're obviously not looking, probably because you're all in and don't want to look at the alternatives.
Obviously you wouldn't have read it as you've only come back to these forums after a four month hiatus because, one would assume, the news that the party you support has screwed things up so badly, however as i said in another thread the solution is simple. You tax the top 3%, maybe even implement a wealth tax on them, then you give half of what you collect to those most effected by inflation / interest rate rises while the treasury keeps the other. That way you protect the most vulnerable while also increasing the value of your currency and countering inflation, you work with your central bank rather than working against them.
To be fair, demanding wage increases even close to what the increase in interests rates are is unrealistic. Labour would not be able to agree to these demands - not without huge amounts of borrowing (the same borrowing the tories are doing now)
Increasing wages increases inflation. There were those trying to suggest this but got shot down for being out of touch, easy to say in their position etc when what they were actually saying was true - just a pill a little too hard to swallow.
Soldato
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So why are economists saying that 15% then is akin to 3% now. It isn't just mortgages that are rising.
I haven't bought yet, (lots of complex reasons)
I earn quite a bit (just outside top 1%) and the cost increase of doing it now is just insane.
I was looking at spending around £450k on my forever home, with a decent deposit monthly payments on the mortgage (2.5%) were around £1600-1700.
Same home now, but with the new interest rate, 6% base + 1%, so 7%. The monthly payments are now like £2800 a month :/
I mean, that's still under 50% of my take home, but it's an obscene amount of money - it's like paying rent in the middle of London or something.
then there really will be riots. Public services are already cut to the bone. If they leave tax cuts that disproportionately benefit those that don't really need the help then I can see that being enough to mobilise the unwashed masses in a similar style to Thatchers poll tax.
Do you suggest we just stop increasing wages then, making people perpetually poorer? because of this speculation it will have a significant impact on inflation.
If you want I am happy to post the last 10 years of wage inflation for France, UK, Holland and Germany, alongside the cost of living inflation data, it will surprise you.
Making people poorer has the same affect as inflation, reducing spending power.
I have said it before if we are to stagnate wages in the name of controlling inflation then the same has to be done to dividends, bonuses and share buy backs (which are the current drivers), its a bit like saying to secure a house we will put metal bars over the windows but leave the front door wide open still. Quite crazy how not many in the UK are recognising whats going on here.
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Not to mention Labour would also increase the size of the state sector so employing more people in public services and at higher wages would be a double whammy!
I don't support what has gone before. A big jump in wages now just makes everything worse.
It's not ideal because when the public sector kick off and demand wage increases that are unrealistic, it puts them directly against the private sector that can't expect a similar increase.
Yes, Labour did this before. Allowed middle management public sector to bloat which takes a generation to pay off as they retire on higher than average pensions.
However, the Tory party hasn't really got rid of the middle management bloat. They just decimated front line staff.
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And push those employees abroad, loosing all taxation from them. Better to have a little of something, rather than a lot of nothing!
They not even getting an increase to match the private sector.
I would perhaps be more supportive if there was an idea how this would be corrected e.g. would you support a delayed wage increase as a means of correction after inflation drops?
Wage increases can be done without printing new money. As an example Royal Mail had enough profits to pay for a wage increase, but they decided to use it on dividends instead.
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Caporegime
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Didn't you say Lefties go abroad when they don't get their own way as an insult earlier?
But fine for rich business people to do so when they don't like the taxes?
It's almost like you aren't consistent here.
Soldato
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You do realise that lowering the tax take by 5% is an increase in nett income, right?
Then why are non-domiciles avoiding so much tax?
It's called floundering.
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