Skip to content

This could even be true

The hope of a decent living has departed for the average household. Fear is all that remains for those who once had hope. Forty years after politics abandoned the post-war consensus, our economy now fails the majority in this country. The era of living decently on average pay is over.

So that idea of spaffing freshly printed money on everyone to do nothing for two years was a bad idea then?

33 thoughts on “This could even be true”

  1. “If the average household once voted Tory, it was because they had aspirations for their children. They supported children with talent in sport, music or anything else. They helped those with coaching in subjects they struggled in. And they sent them on school trips, believing these were a key part of “getting on”.

    All that is now beyond such families. The struggle to survive has tipped the balance for average-income households. Once they saw themselves, or their children, as being on the way to better things. This was the dream Thatcher and her successors sold them.”

    Look, if parents want to pour money and their kids time into sport and music, that’s their problem. But you know, we’ve never lived in such a great time for opportunities for children. You can learn almost anything from YouTube, or from £10 courses. You can buy guitars for £60. You can buy a Kindle for £50 and read all the world’s greatest literature for free, or for pennies.

    “But the average household was supposed to have a home, a pension, a Ford, a holiday in the sun and access to advancement for their children within their grasp. This was what defined living decently.”

    And how many don’t? I mean, excluding the sort of idiot women who write for the newspapers complaining about their rent while living alone in the most expensive place in the country? If you have a good productive job and your wife works part time, you can have all that. A VW Golf that works will cost you about £2000. You can have two weeks in the sun for £1000, even in school holidays.

    The real problem is that we now have a society that watched The Graduate and thinks that “Plastics. There’s a great future in plastics” is uncool, weird and funny, rather than a college kid in 1967 getting one of the best pieces of advice at the time. And you know, if you really want to drop out, live in a commune, follow your dream and not be a pawn to The Man, that’s your choice, but you aren’t going to get the same lifestyle as being a wage whore.

  2. I agree Tim

    Let’s look at the balance sheet. Thatcher has been out of office for 32 years. She has been dead for 9 years. I don’t think anyone with half a brain (That excludes Murphy by definition) could describe Blair, Broon, Camoron, May or Bojo as ‘Thatcherite’ with a straight face. What I see are the following.

    – The ghosts of MMT and QE coming home to roost. Massive boosts to the money supply now being monetized
    – The doleful consequences of Unlimited immigration of people who contribute nothing to society. Even if they are working it is often in illicit occupations paying minimal tax and being exploited
    – The COVID Lockdowns, which have been absolutely catastrophic in their impact on the work ethic and willingness to work in this country (and which he would have had in place now for more than 12 months)
    – The war in Ukraine and concomitant sanctions causing massive energy shortages
    – Compounded by the impact of ‘Net Zero’ and the Green movement in general
    – The ongoing activities of the WEF and the Great Reset

    I’d actually agree, as you would with his first sentence. Obviously the difference being that we recognize that he, and those naive enough like him to assume you can fundamentally ‘buck’ both the market and the fundamental rules of economics , are directly responsible for this state of affairs.

  3. Average UK wage is £26k. Up here in the East Midlands there are decent tidy 3-bed semis of the Victorian type available for £160k in modest but respectable locations. £10k deposit, 3.5% mortgage for £150k, £740 pcm payments out of your £1760 take home pay. £200 pcm bills, leaves you £200/week for food and nice things. So a single person can easily buy a house on minimum wage and live alone. What are we complaining about here? Too much of a struggle elsewhere? Want a bigger house? Team up, folks!

  4. Frugal Fred,

    “The COVID Lockdowns, which have been absolutely catastrophic in their impact on the work ethic and willingness to work in this country (and which he would have had in place now for more than 12 months)”

    There’s a huge disparity on that. Like all my buses are running great, punctual, polite drivers. You go to McDonalds, and it still works great. Call my garage about a car problem, and we’re in the next day and all fine. Wife’s hairdresser still doing as they did. And all of these people did as much as they could during Covid.

    But there have been some big pay raises for a lot of these people. And my gut feel is that a lot of these people have realised how they are underpaid compared to a lot of wanky jobs out there. Like there was a strike at one of the Scottish cake factories during Covid, and these people got a few percent and felt aggrieved that they were going to work every day while a lot of people were getting paid to watch Netflix. Their employer were probably paying all they could within the cake market, but I did sympathise with that perspective. I have a feeling that a lot of people who do good, useful jobs have had their eyes open to how wanky the public sector is.

    I mean, I took a coach at the weekend to London. There’s 1 guy, the driver, who also checks the tickets and loads the suitcases. OK, the business also has vehicle maintenance and people doing the bookings (mostly web and app), but that’s about it. They don’t even have bus stations in most places. Compare that to rail which has stations, ticket offices, people at ticket barriers, guards, track, signalling. Oh, and he earns much less than the train driver, who also doesn’t even have to steer. You’ve got the RMT complaining about not getting paid more, while they want at least double what National Express charge (+ lots of taxpayer subsidies).

  5. Bloke on M4

    I would 100% agree with you on the part of your posts related to the Public Sector (and probably most of the rest of it!)

    We have known for years that anything related to ‘diversity’ for example is a job which doesn’t need to be there. Same for Climate Change. Overall it was estimated even in the time of Broon that 2 million public sector workers could be summarily dismissed with no impact on the level of services being received. So I would concur that the COVID lockdowns had that effect but I am not sure it invalidates my point – its simply that otherwise productive people have realized that the extreme left wingers in the non productive public sector do nothing and get handsomely rewarded for it, so it has collapsed the work ethic of people who feel they are being taken for fools…

  6. No one ever lived decently on average pay. People would be appalled ad how even the well off lived as recently as the 1960’s.

    These people want to get back to a past that never existed. Nothing more conservative than a progressive.

  7. Can we abandon rational pricing models yet?

    Why isn’t the answer just print more money faster than prices rise?

  8. Why isn’t the answer just print more money faster than prices rise?

    It’s been tried. In Weimar Germany, post war Hungary, Venezuela and Zimbabwe.
    Those with access to foreign currency (i.e. the rich) made out like bandits. The rest, not so much.

  9. VP

    Just traspose these two

    – The war in Ukraine and concomitant sanctions causing massive energy shortages
    – Compounded by the impact of ‘Net Zero’ and the Green movement in general

    NetZero were going to cause the shortages, but the Ukraine war brought everything a few years forward. The insanity of relying on wind and solar and the closing of fossil fuel and nuke plants were inevitably leading to this point, but The Crisis happened and accelerated the trend.

  10. @Otto: ah, you mean that They are boiling the frog faster than they had intended. What a good point.

    It’s hardly surprising, then, that the frog is noticing.

  11. Ottokring

    That’s a fair point – I’ll note that in future posts pointing out that Murphy is directly responsible for this state of affairs as he supports every one of these causes.

    Thanks

  12. And during this period Tax freedom Day has moved inexorably right from 1 May in 1996 to 8 June in 2022

    A whole month in 25 years

    A link perhap?

  13. Bloke in North Dorset

    Having just had my electricity DD increased by 70% and we’ve just paid 50% more for oild than we did last time I accept there are going to be many who will have a cost of living crises, but the constant repetition of the term will also make some people think they have one when its only getting difficult.

    One thing we do have and its going to get worse is a living standards expectations crises. Those people who would have gone to university before Blair’s idiocy will still be doing well. The rest will not but they have been promised that all they need to do is get a degree and then they’ll be better off. It was always bollocks and now the penny has dropped.

  14. Just traspose these two

    Yup, if the Slavs made peace today and the gas flowed normally tomorrow it would make but a slight and temporary dent in the rise in energy costs.

    I still tend away from conspiracy theory as explanation for things, mostly seeing jumbled motives and incentives sometimes coalescing – plus cockups, of course. But the whole Net-Zero / Great Reset thing has taken on its own form and is snowballing. There is now undoubtedly a “they”, and they need dealing with. Trouble is, they’ve instilled a doomsday religion in the youth and religions are very difficult to counter.

  15. Can we agree inflation is psychological?

    philip

    So if we print the money everyone wants, where’s the problem?

  16. You see, that wasn’t proper socialism money printing before. Proper socialism’s money printing’s never been tried.

  17. Yup, Lockdowns; bank bailouts; massive influx of retirees promised pensions will rise at least as fast as the salaries taxed to pay them; and the extermination of energy production. But I’m sure evil, evil neoliberalism is to blame.

    To be honest I’ve rather run out of sympathy for the public here: they voted for all this; they should suffer the consequences. It’s the only way they’ll learn.

  18. It’s the old Archie Duke’s ostrich thing. It was too much effort /not/ to destroy the foundations of our modern living standards, it was far too easy to cheer on the rabid militarists econutters, abdicating yourself from thinking through the effects.

  19. Can I resort to personal attacks as I have no arguments?

    《You see, that wasn’t proper socialism money printing before. Proper socialism’s money printing’s never been tried.》

    Wasn’t QE money printing?

  20. RSM

    QE was ‘money printing’ deferred as it mainly went into Commercial Bank sheets (M3 or M4) – that money is leaking out and is of course a factor as I point out. Murphy’s failure to understand this is why MMT is being rumbled as a scam progressively.

  21. Van_Patten

    When a private bank sold a Mortgage Backed Security, or whatever, to the Fed, didn’t it receive more than market value? And weren’t the reserves it received balanced by a corresponding Net Worth liability, i.e. bank shareholders got actual spending money they could use as they saw fit, whenever they wished? So why is the leakage only happening now?

    In other words, was QE money printing for the rich? And when repo hyperinflation happened in 2019, did the Fed respond by printing more money?

    So why isn’t supplying more of the money everyone is demanding the obvious answer to all (hyper)inflation?

  22. @dearieme, August 23, 2022 at 10:54 am

    Or twenty-five years after politics adopted the Blairite consensus

    Spot on and establishment, msm want Blair/Brownite Sunak as next PM to continue WEF Agenda 2030

    It wasn’t Brexit or capitalism that got us into this mess – but try telling that to the ‘Net zero’ new Puritans”
    https://archive.ph/ItgXz

  23. Can’t calculators do scientfic notation?

    If you convert nominal prices to percent of nominal income, and increase nominal income in lockstep with nominal prices, don’t you get stable real purchasing power?

    So if nominal gas prices go up 1000% or whatever, but so does your nominal income, doesn’t your real gas expense remain stable, and nominal hyperinflation has no effect on you?

  24. Rsm

    Thanks for the response – To your point, absolutely QE was money printing for the rich to a degree. There are asset bubbles all over the place – art, supercars, collectibles of every hue in addition to more mainstream assets like Equities and even bonds to a degree (At least private sector ones) – as these bubbles pop we see the largely imaginary money that remains leaking into the more liquid parts of the money supply.

    Your point that QE has become so ingrained the Fed in particular responds to any crisis by simply printing more money is also a valid one.

    However, while your proposed solution might buy some short term relief ultimately it will collapse in a heap once production cannot keep pace with the money supply, and to a certain degree that is what is happening now. Financial authorities have run out of road. There may be some ‘runoff’ to kick the can down once again in the short term but ultimately there has to be a reckoning.

  25. So if nominal gas prices go up 1000% or whatever, but so does your nominal income, doesn’t your real gas expense remain stable, and nominal hyperinflation has no effect on you?

    Can you devise a system where your “nominal income” adjusts faster than the time it takes to get through the real checkouts? What about people living off savings? Those’ll become nominal faster than you can type “nominal”.

    It really is much easier to just stop printing the fucking fiat.

  26. You end up as in Weimar Germany, where people were paid daily and rushed out to spend it before the prices went up again and it was worthless*. Plus, buy wheelbarrows.

    * At a flea market in Aachen in the earl7y 70s, I bought (for a few pence) a 100 milliarden mark note, overprinted “ein billion”. I understand they got up to 500 billionen before the currency finally collapsed.

Leave a Reply

Your email address will not be published. Required fields are marked *