When poor and normal people get too much money, this is what happens

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Raikiri said:
Except it's not your point.

If low earners making more money is the driving force behind increased housing costs then reducing their income would reduce housing prices in tandem. Meaning that their decreased income would have the exact same buying power and they would still be able to buy the properties.

Do you see how this is contradictory?
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No sorry, you're not getting it.

All else being equal, buying power would decrease yes. But the damage is already done because houses have risen in price, allowing people to leverage equity from those houses and buy more of them.

So now, you cant just cut low earner wages because of the lag in the system, and people would really suffer.

What Im saying is, the causes have already happened, and are because of decisions made three decades ago that allowed the working class to reap these massive gains. As bad as it sounds, the working class should never have been able to reap these gains, and we're all now suffering for it.

Now the problem will be perpetuated because the only way to help people survive against this inflation is to bolster wages, cut tax and provide more benefits. This enables them to pay bills, meet their rents etc, and so prevents the system from collapsing when it naturally otherwise would. But to do otherwise would be seen as immoral.
 
arknor said:
Yep toally the poors fault :rolleyes::rolleyes::rolleyes::rolleyes::rolleyes: sorry my eyes won't stop rolling :rolleyes::rolleyes::rolleyes::rolleyes::rolleyes:

nothing to do with the tory party easting obscene amounts of money for the last 2 years....., it's all the poor peoples fault and those on benefits...... Boris Johnson told me or something :cry:
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I haven't said its the poor's fault. This inflation bubble has been building for 20+ years, its just been pushed over the edge by recent events. And yes, Gov QE amplifies it I agree.
 
danlightbulb said:
I haven't said its the poor's fault. This inflation bubble has been building for 20+ years, its just been triggered by recent events.
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you don't get how inflation works at all, go watch some videos of QE and what it does

how much of this QE monies do you think went to average everyday working people?
 
arknor said:
you don't get how inflation works at all, go watch some videos of QE and what it does

how much of this QE monies do you think went to average everyday working people?
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Inflation is a circular problem.

Goods get more expensive --> people need payrises --> payrises enable more demand --> demand increases prices ---> and back round to the start.

And add to this cheap credit, and you get what we have now.


Im not blaming the poor. Im blaming the policies over decades that allowed so much new money to input into the system, that's fueled a new level of demand, that's bolstered the profits of companies, that's increased prices, that's led to more money being needed etc etc.


Jono8 said:
I have seldom read something so wrong and inaccurate.
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Please do elaborate.
 
danlightbulb said:
Goods get more expensive --> people need payrises --> payrises enable more demand --> demand increases prices ---> and back round to the start.
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you realise how much goods get destroyed or burnt every year because no one is buying them and they don't want to flood the market and reduce prices or future demand right?
 
Uther said:
So the poor should know their place. :rolleyes:
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I don't doubt that it was done for the right reasons 20+ years ago, and I don't doubt many many working class people have benefited personally from the last 20 years of asset growth, credit availability, raises in pay etc.

What I am saying is that this current problem is as a result of those decisions, as well as other factors.




VincentHanna said:
Whose policies? What are you referring to?

There's more poverty in the UK now than in 2005. I don't remember food banks 20 years ago.
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I think mainly the council house sell off in the 90's followed by the deregulation of banks in the Blair/Brown era. Its been perpetuated since.


If Im wrong on this I'll accept it. Do you all think that policies enabling working class people to leverage assets to gain, over time, far more money than their actual job would ever have provided them with, has not been a significant contributor to this current problem?
 
Is OP saying in a roundabout way that we should let the poor die off of hunger and hypothermia to improve the lives of the rest of us?
 
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