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4 Comments
Any spare money in people’s pockets is immediately absorbed by housing costs. As soon as wages rise, house prices/rents go up by just as much or more. It’s impossible for the population as a whole to increase its disposable income because it will always just be absorbed by housing.
And the best thing? As soon as someone owns a home they start seeing this as a *good thing*. People are happy as Larry when their house price goes up and woe betide the government that lets it stagnate or go down.
High energy prices, high food prices, high housing costs, high transport costs, high childcare costs. I can’t think of anything the UK is cheap for (and, controversially, I’d include health care which is funded by high taxes).
For the first time, I’m really contemplating going abroad.
https://www.resolutionfoundation.org/publications/whose-price-is-it-anyway/
Link to the study
Wealth as a number is meaningless if your purchasing power is not the same…