The aspect which worries me most is the British habit of investing most of our savings in housing (which is essentially unproductive) instead of investing it in productive enterprises, hard-working assets, and profitable holdings. This practice contrasts with other prosperous economies, and is still getting worse. In the 1980s the Thatcher government regarded it as a desirable policy objective to increase substantially the proportion of the population who own their own housing, and it was entirely successful in that aim. The long-term effects have been enormously damaging to the British economy.
i have a theory about that, give me the paddle of rebuke if necessary but, more people in there own home would lead to less strikes and industrial disputes.
The answer was said miles back...docial housing its what is needed, and none of those with lots of kids needing space cam afford the big houses anyway!
I don't think there is anything the matter with a property owning democracy, the real problem is more to do with the way the market has been manipulated to maintain high prices. Those high prices have maintained balance sheets at unrealistic levels and perpetuated the idea that we are all rich and can therefore consume more and more.
If inflation were to increase and become a problem, the main mechanism for reducing it is for interest rates to be increased by the Bank of England. This is pretty effective at controlling CPI. So far so good. But since interest rates on mortgages comprise a part of RPI, use of that mechanism would in the short term increase RPI. It would be useless to base decisions about reducing inflation on a mechanism the use of which would immediately increase inflation! Hence the need to use CPI for these purposes. At the moment of course inflation is not a problem, but who knows - it may become one again in future.
so whats your thoughts on mortgages being used as a tool to help curb the unions. and kick start the banking/service industry.?
Rubbish. Never happened. You fell asleep whilst reading/watching Game of Thrones and dreamt the rest of it. Next!
That isn't sustainable either. Its a zero sum game, a grand Ponzi scheme of ever increasing borrowing, spending, consumption and population expansion. Everyone who can, which is the overwhelming majority, must pay for their old age themselves. If we can't, our society, like our state government, is living beyond its means and there will never be any way to square that circle.
welcome to 1855 All welcome, as lomg as you are not old, sick, infirm or unemployed Welcome to UkIP, home of the Bongo Bongo bird
We have been relying upon growth to come to our rescue, whilst each generation takes out more than it puts in, only growth has stalled, and there are some convincing arguments that suggest it is unlikely to return any time soon, coupled to that productivity per capita is falling. Over 55s living in large houses are the least of our worries.
I welcome your compassion for the old, sick, infirm and unemployed but without an economy that works they are all fucked. Living beyond your means and hoping for gravy tomorrow just won't cut it.
Or...allowing the top few % to take all the gravy and leave the others the duck fat dregs means 97% of us are fucked...or you could get the rich to pay their share, stop squeezing the middle and allow the lower to actually have real aspirations to provide themselves the life they want rather than know the mongers will never give up anything to the plebs
