Wage inflation

[SimonMac]

Shirley the more a EPL Footballer earns, the more tax he pays ergo good for the economy, he then spends his hard(ly) earned money on goods, staff, hookers and super injunctions which is good for the economy.

[doodab]

It was all Labour's cleverly plotted decisions.

It was all labour getting into bed with big business and giving them what they wanted. The tories have been and will be just as bad. The problem is that the UK isn't run for the benefit of the majority of British citizens and probably never has been.

[AtW]

Shirley the more a EPL Footballer earns, the more tax he pays

[gingerjedi]

They would have borrowed money when rates were 5-6%.

Now rates are 0.5% and they had unexpected few good years with lots more cash they were not meant to have.

Now it's time for rates to go up to 5-6% so that they can keep repaying debt at the rates that were common at the time.

What's the problem? It's not like inflation is under control.

Are you speaking from experience or your own selfish point of view? It's just as well rates have been low as I've struggled to find work over that same period just like many others, that 'extra cash' is now going on food and fuel so how do they make up the shortfall when rates go up?

Inflation is usually driven by people having too much money in their pockets are you suggesting that's the case now?

[SimonMac]

Basic wage there is no loop holes, thats why they can go to Spain, "earn" a lower weekly wage but walk out with more cash in their pockets due to taxes, IIRC thats also why a lot of Rugby Union players have moved to French teams for the better tax breaks

[russell]

Are you speaking from experience or your own selfish point of view? It's just as well rates have been low as I've struggled to find work over that same period just like many others, that 'extra cash' is now going on food and fuel so how do they make up the shortfall when rates go up?

Inflation is usually driven by people having too much money in their pockets are you suggesting that's the case now?

I hope rates got up to 4-5%, loads of cheap repossessions will be available from the idiots who took > 90% LTV mortgages with payments at the limit of their salaries. If you were sensible you wouldn't be on the brink.

[AtW]

Are you speaking from experience or your own selfish point of view?

Let's just look who is selfish here.

1) Me - I won't gain anything directly from increased rates (you need lots of cash even in good days for 5% to generate meaningful returns after 40% tax).

2) You and people you defend - directly gain from low rate by having massive increase in disposable income. It's like having massive targeted tax cut - for those who took on debts and tax increase (via lower income in savings) on those who saved.

Who is selfish here?!?!

It's just as well rates have been low as I've struggled to find work over that same period just like many others, that 'extra cash' is now going on food and fuel so how do they make up the shortfall when rates go up?

It's not sustainable to have rates at zero level when inflation is so high.

You should have saved money (which high rates should encourage) for periods out of work, and not load up yourself with debt if you are not sure what tomorrow brings (I speak from experience here).

Inflation is usually driven by people having too much money in their pockets are you suggesting that's the case now?

There are different reasons for inflation, right now it is mostly imported due to high cost of commodities which is made worse by weak currency (GBP).

In addition to this QE and unreasonably low rates maintain real estate bubble thus preventing realistic market pricing to establish itself.

[gingerjedi]

I hope rates got up to 4-5%, loads of cheap repossessions will be available from the idiots who took > 90% LTV mortgages with payments at the limit of their salaries. If you were sensible you wouldn't be on the brink.

I would bet 90% of people with first time mortgages took them out with a deposit of 10% or less, are they all idiots or just a little naive? They were encouraged by the same people who brought the country to its knees and then got off scot-free.

Britain is an expensive country, there's not not much 'wriggle room' for most people.

[AtW]

I would bet 90% of people with first time mortgages took them out with a deposit of 10% or less, are they all idiots or just a little naive?

Look, you not listening - they took this mortgages when rates were 5%, ok? It might be reasonable to expect those people to get shafted if rates went up to 10%, however we are talking about increase from 0.5% - if you are saying that those people can't handle increase back to normal rates then they should not have borrowed in the first place.

[doodab]

Britain is an expensive country, there's not not much 'wriggle room' for most people.

WHS. My parents only debt is the rump of their mortgage, which was taken out in the early 90s before the house price boom and is nearly paid off. My mum doesn't work and my dad, who is past retirement age, brings in a better than national average wage. They are struggling to make ends meet.

It's all very well telling people to save when times are good but the reality is that for the majority of people times weren't actually good, it was only the availability of cheap debt and rocketing house prices which made them seem that way.