The big problem of the last 15 years or so

[Wij]

OK - my theory as to why we're so fucked (or a major part of it)

Sustained economic growth, even if it was a bubble based on increased borrowing, lead people and governments to be happy to be spending at their limit. Nothing's gone wrong for the last few years so it won't go wrong. No need for some slack in our budget.

Labour spend a load of the money it thought it would permanently have coming in, not just on low income families, but also on middle-income ones.

The problem is, once you are comfortable, and crucially, don't feel the need for any slack, any extra income that comes in you treat as totally disposable. You don't need more consumer goods and you aren't going to save. So you spend it on the biggest house, and mortgage, you can afford. As middle-income families got 'better off' they borrowed the largest amount they could, fueling house price inflation. As house prices went up banks decided to lend more as a proportion of income to match what families could now afford (this much we know already.)

As a net result, despite all the benefits, most familes are not better off at all, they simply have bigger mortgages. Now when we are talking about reducing benefits for middle-income families, they are, with a degree of legitimacy, saying they won't be able to afford to live. Realistically, they might have to move to a much smaller house or rent.

So the problem is, benefits to those who aren't actually in poverty hasn't made them better off, it's just made house prices go up and the banks have allowed lending to soak up all spare income.

Those mortgages are still out there for the next 20 years. Big problem.

Discuss

 

[StRaNgEdAyS]

That and the fact you lot don't make enough babies so you need to import your labour and become infested with lice from the middle east.
Sex is always the question. The answer should always be yes!.

 

[throdgrain]

That and the fact you lot don't make enough babies so you need to import your labour and become infested with lice from the middle east.
Sex is always the question. The answer should always be yes!.

lol this is true, though also true for you guys, only you import lazy Mexicans instead of industrious Indians

 

[StRaNgEdAyS]

Naahhh, we're under attack from endless waves of boat people.
Why they aren't put straight on an aircraft back to where they came from is a mystery. It would save us a shitload of money, and I reckon once four or five loads were sent back immediately, the flow would drop off considerably.

 

[rynnor]

I think the house price boom was more down to the loosening of the credit tbh.

It used to be 2.5x combined income and 3x individual income and prices only grew as peoples income rose.

But in the 90's up to 2008 this got relaxed so suddenly people could afford a lot more so prices really started to jump.

Finally you got to the 'self certified' mortgages which were basically take as much money as you want because house prices only ever increase so we'll get it back.

I still think the housing bubble has yet to properly burst but much depends on what the government does as to when and how badly it will burst.

 

[throdgrain]

Naahhh, we're under attack from endless waves of boat people.
Why they aren't put straight on an aircraft back to where they came from is a mystery. It would save us a shitload of money, and I reckon once four or five loads were sent back immediately, the flow would drop off considerably.

Agree with that, I'd put em all back on a plane straight away

edit you're in Australia I thought you was in the U.S , my mexican comment is irrelevant sorry my mistake

 

[Athan]

Realistically, they might have to move to a much smaller house or rent.

... and as a consequence squeeze that market and also fuck over those on lower incomes.

 

[Chilly]

Just wait for inflation to come and it will wipe the slate clean. Seriously, you cant print hundreds of billions of pounds and pretend it's all fine.

 

[Embattle]

The biggest problem is that everyone blames someone else.

 

[Chilly]

The biggest problem is that everyone blames someone else.

I blame my parents and the rest of their generation.

 

[Gumbo]

That and the fact you lot don't make enough babies so you need to import your labour and become infested with lice from the middle east.
Sex is always the question. The answer should always be yes!.

Waaay to simplistic a view, not to mention overtly racist, but I won't kick up any stink over that.

Most of the labour which has been imported over the last few years is from within the EU, and most of it has been to fill jobs which 'British' people couldn't be arsed to do because they were better off on benefits. Jobs such as fruit picking/brocolli harvest etc. There are exceptions, such as Polish building trade workers where the building boom simply meant that there wasn't enough skilled British nationals able to fill the vacancies. A large amount of the Poles have headed home now though as the pound collapsed and the work dried up.

Middle East/Far East labour imports have mostly been for skilled jobs, largely in the medical profession and that is because our young no longer wish to apply themselves to education, and our basic education has been dumbed down to the point that when real studies start at Uni, the young can't cope. We've also lost a large amount of medics to emigration to fill shortages in Australia and NZ due to a perceived improvement in quality of life, and as long as we want hospitals, we need medics to work in them.

 

[Raven]

The biggest problem is that everyone blames someone else.

Where there's blame there's a claim!

Ambulance chasers direct.

 

[DaGaffer]

I blame my parents and the rest of their generation.

I blame your parents too. Bastards!

 

[Wazzerphuk]

Too much importance on families, not enough on people that do not drain economic and environmental resources.