Wednesday, 1 June 2011

Disposable income has fallen in every English region outside London



For the unemployed amongst us ‘the big society’ means that there is a stick but no carrot; and plenty of stick at that, what with all manner of sanctions employed to scar and frightened away those most in need of support when fallen, gone down  on hard times such as these. I feel sorry for the DWP workers who are forced to do these deeds to their fellow workers, and to think that they really don’t get that good a deal in terms of pay and conditions; this may not really be a good analogy but I can’t help thinking about those Jew’s in Nazi camps who thought they would be speared the gas, if they collaborated with the murdering jailers and help heard their fellows about like cattle or sheep – I know the comparison may not seem to be fair and there are many good people at the jobcentre trying to help their fellow workers into work and away from the blight of poverty and a life spent on making do with very little.

So Iain Duncan Smith, loves spiting and spouting on about how ‘work pays’ but a recent report tells a very different tale.    

The report, “Growth without Gain”, published by the Resolution Trust, evaluates the living standards of the 11 million people on low to middle incomes - households without children earning £12,000-£30,000 a year, to households with three children earning £19,200-£48,500 - over a 30-year time frame.

From 1970 to 1977 there was moderate overall wage growth, with “little, if any, increases in inequality,” it states.

Between 1977 to 2003 wages rose overall, particularly for women workers. However, this was accompanied by “soaring” wage inequality. Whereas pay for those in the middle of the earnings distribution rose by 1.8 percent each year during this period, those in the 90th percentile of earners saw annual growth of 2.7 percent.

The top earners saw even more spectacular growth. The highest 0.1 percent trebled their share of national income, from 1.3 percent to 4.4 percent. Those in the lowest 10th percentile of earners, however, saw their wages rise by just 1 percent.

Wages stagnated for the bottom half of the population.Disposable income has fallen in every English region outside London that is the reality of the here and now, and it isn't going to get better but worse.

The report warns of the impact of an interest rate rise, combined with declining property values. But even as it was published, the Organisation for Economic Co-operation and Development (OECD) called for a hike in interest rates, and I would not be surprised if we got one during the summer.

Figures released by the Office for National Statistics revealed that household spending fell by 0.6 percent in the first three months of the year. Business investment collapsed by 7.1 percent in the same period.

What this spells is a deepening of the economic crises here in Britain, with much hardship about to be forced upon working people whether in employment or not – hold onto your hats and bellies comrades!”  

Growth without gain? The faltering living standards of people on low-to-middle incomes: More Information Here:  http://tinyurl.com/3bnqdyy                                      

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