No, really, he’s a bloody professor!

But neoliberalism and austerity have downsides. One is that, as Andy notes, people don’t have enough to spend. And, second, they don’t have enough to save. The deregulation of pensions was exacerbating this. The sole reason for enforcing new pension contribution payments in the UK was, in my opinion, to defeat this trend for the gain of capital markets, again in my opinion. Pension provision has nothing to do with it.

Real disposable household income for the UK is rising still, as it has been – absent the occasional blip to be sure – since forever.

12 comments on “No, really, he’s a bloody professor!

  1. “people don’t have enough to spend. And, second, they don’t have enough to save”

    So what are they doing with their cash then, burning it?

  2. OT but does anyone know who this Andy Crow guy is & what he does. His posts are so beyond belief that it could be Murphy Richards taking the piss?

  3. From that ONS data real household disposable income is 6.4 times what it was in 1949. Imagine what your lifestyle would be like if you had six times the disposable money you do now. I would essentially be unable to spend it unless I went off my rocker and blew it on yachts or something idiotic. Conversely, imagine getting by on one sixth of what you currently have. Good old days, my aching ringpiece.

  4. BiCR,

    Part of the answer is two topics below this. If the income for the top 20% is 15 x the income for the bottom 20% today, and after tax, that is 4 times, then if you are in the bottom 10%, perhaps an uplift of 6.4 times puts you where the top 10% are today after tax! (I just guessed that, but it’s certainly better than the 4x for bottom 20% to top 20%).

    Put another way, it didn’t matter how rich you were in 1949, you couldn’t get a colour TV, Sky, a car with electric windows, air con and a DVD player, a smartphone or digital camera, a PC, laser printer or laptop, the Internet, or a holiday with jet travel there and back almost anywhere you cared to name outside the UK.

    Mind you, you might have just dodged being bombed by Jerry, but your daughters weren’t at risk from RoPpers, so it isn’t all good news.

  5. @ BiCR
    A lot of the money goes on clothes – no more hand-me-downs – and eating out (that includes buying a sandwich for lunch instead of bringing one to work), followed by keeping warm (can you remember chilblains), leisure activities (playing football in the back street didn’t cost much), foreign holidays (was the limit £75? or less?), cars (a one-car household is now considered poor or spartan instead of rich).
    I can easily imagine getting by on one-sixth of what we now have because we did (albeit I was in a middle-class family so it was probably nearer one-quarter or one-third in the less-equal Attlee years) – I just wouldn’t enjoy it.

  6. +Tyler that Andrew Crow page is quite remarkable, not just for the quality of the bad ideas (winners every one) but for the sardine-tin density. There’s no let-up. The Tony Blair Institute is going to spend millions to ensure that millions of Sierra Leone fisherman continue to eke out a peasant subsistence as fishermen. The party faithful are turning their backs on Jezza, the only British politician with something like rock star status. It’s a satire page, right?

  7. “No, really, he’s a bloody professor!”

    And from the Professor we learn today that he lectured on VAT and that it’s a ‘principle’ that VAT is not charged on exports.

    Not if your customer is living in the EU and not VAT registered it isn’t. VAT is chargeable.

    Seriously, tax advice given by this man is dangerous.

  8. Is it just me that can make neither head nor tail from the quote? It seems to be, well, just nonsense really.

  9. people don’t have enough to spend. And, second, they don’t have enough to save

    Which is good news, as (a) he believes saving removes money from the economy and (b) people won’t be able to indulge in the conspicuous consumption he so dislikes.

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