Why and how inflation and falling wages hasn't bothered
the wealthy.
This week I want to look at
inflation and the cost of living crisis. There was a lot of fanfare last week
with the announcement that wage increases have finally passed the rate of
inflation. The full details of the announcement can be found here;
On the surface it sounds great, the
bedrock of a recovery is in place and good times are just around the corner.
But, if you look into what has happened over the last forty years and the consequences over the coming years, then a
different picture emerges.
These figures include all the high
ranking salaried jobs mainly in the banking and financial sector that we the
tax payer so happily saved back in 2008. These salaries have and are rising
faster than any other. These million pounds salaries and their huge
bonuses will adversely affect
this data, boosting the percentage higher and disproportionately. Our
Government does little to cap them as it encourages the City to make more and
more money. Just look at the figures involved, who else gets million pounds
salaries and two
hundred per cent bonuses?
Wages for the average person have
stagnated and inflation has eroded the spending power that this reduced income
can buy. For example average earnings adjusted for inflation have dropped 7.2
per cent since 2010 – leaving millions more than £2,000 a year worse off. This
is where the economy has been hurt.
