Mortgage Rate Rises
- Thread starter glenimp617
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Deleted User 298457
Deleted User 298457
Well for a start it's a whole lot understandable as to why it came about as an issue. Maybe it was just me thinking they were flat out paying less and people were just blind to it.
By now they should have learnt the rules, if they haven't then they are wilfully just ignoring them.
No they're just pushing costs to employees for things essential to do their jobs/expecting people to do things for free.
Like if work gets to say what I'm doing then I'm working, end of story and self evident... Albeit less clear for me as I'm salaried.
Exactly this.
Wages relative to inflation aren't the only factor in jobs becoming poorer. If costs associated with work (e.g. commuting) go down then sub-inflation pay rises can leave people better off. Really what matters is the net benefit from working i.e. net income minus net outgoings associated with working.
What LiE is describing is the inflation spiral whereby people demand higher wages due to inflation, but then the higher wages have to be funded somehow, which may involve putting prices up. I think some BoE bod cautioned against this a couple of months back and got chastised for it but fundamentally what he was saying was sound in basis, if you keep hiking wages then it fuels inflation because a) people have more money to spend and b) the cost of producing goods and services goes up.
There's an inherent issue in that people don't like being worse off (income increasing less rapidly than cost of living / outgoings), and feel they have a divine right to maintain or improve their standard of living year-on-year, but the reality is under some economic conditions you have to accept that you will be worse off than you used to be.
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I can accept that... What I can't not be annoyed about is that the very people who caused my decline in standard of life or preach about accepting being worse off are generally unaffected themselves.
THAT is a little galling and makes me want to give them a slap
Who is unaffected by inflation?
I didn't say they were unaffected... I said "generally unaffected" which is different.
Do you hear of politicians or BoE execs struggling to keep their homes or eat?
Challenging an opinion is fine, being contrary just for contrary sake is quite another... Or do you believe that the aforementioned people's standard of life is greatly affected by the current inflation?
I'm not sure the addition or subtraction of the word "generally" significantly changes the meaning.
I didn't challenge it to be contrary, I asked the question because my inclination is your statement is untrue and wanted to confirm who you are talking about before challenging it. MPs would be considerably affected by inflation IMO.
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Are they... Go on, run me through how inflation is causing them hardship.
Couldn't spring for the upgraded massage seats on the brand new Bentley, gotta feel bad for them.
I didn't say it was causing them hardship (although it might be) but everyone who isn't very wealthy is going to be adjusting their standard of living. MPs earn a good salary but they are going to be significantly affected by mortgage rate rises, energy prices and food inflation just like anyone working for a wage.
Sunak on the other hand...not so much
Sunak on the other hand...not so much
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Caporegime
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Yeah instead of going without food they will have to trade the Maldives for Benidorm.
Some people's lived experience prevents them seeing the situation as it is which in turn explains the lack of empathy. In those cases just say ok boomer
Only being able to afford a dumb **** £500 bottle of champagne instead of a dumb **** £1000 one when you go out for your 7th meal of the week is not what i would call being "affected.."
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People want to hate because they feel our politicians have screwed up (I do too) but someone who takes home a few k a month isn't buying £500 let alone £1000 bottles of champagne or Bentleys. Most politicians are probably pretty messed up by inflation too.
"Of the 68 Conservative MPs, chancellor Jeremy Hunt has seven flats in Southampton, while home secretary Suella Braverman, Gillian Keegan, the education secretary, and Lucy Frazer, the culture secretary, all declared one rental property in the latest House of Commons members’ register of financial interests."
Wonder how many MPs even have a mortgage?
Wonder how many MPs even have a mortgage?
His point is perhaps that a lot of the people that voted for Brexit are nearing retirement age, probably don't have a mortgage, are coming to the end of their working lives and will sit on pensions that are linked to inflation. If they are really lucky they will have one of those good pensions that are completely unaffordable so the next generation is paying for them.
Caporegime
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I am on a guitar forum, and the demographic in that forum is probably about 20 years ahead of this one, most of the posters are 50's - 60's. A lot of them are mortgage free, although i cannot say how many voted for Brexit but they are mostly immune to inflation. There is currently a thread about retirement and a few said they retired in their mid 50's. If you do the math, in order to do that you need a solid private pension before the State pension to kick in, no mortgage, and a healthy saving pot that you can easily access, somewhere around half a mil these days.
That is the section of the population that isn't affected by much of the current economic crisis to the same extent. Their savings are going up, probably more than enough to offset the rise in food and energy. With no mortgage, the hit isn't as big as someone who still owe the bank £200k for their house.
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