Wednesday, 14 July 2010


Public sector workers have already had their pay frozen for the next two years, while many private sector workers have had to accept similar deals or part time work in order to preserve their jobs.

But figures from the OBR show that the rise in the cost of living will outstrip wage rises for some years to come.

According to its official forecasts, average earnings will rise 2.1pc this year, 1.9pc next year and 2.3pc in 2012. In that time, the Retail Price Index (RPI), traditionally used as the inflation benchmark for wage settlements as it includes housing costs, is predicted to rise 3.7pc, 3.2pc and 3.2pc [... ]

Mr Dicks’ warning came as the Office for National Statistics released official inflation figures for June. CPI fell from 3.4pc to 3.2pc over the month due to falling petrol prices, but remains far above the Bank of England’s 2pc target. RPI is higher still, at 5pc after a 0.1 percentage point fall over the month.

Both measures of inflation exceed the most recent statistics on pay rises. According to Incomes Data Services, wages rose at an annual average rate of 2pc in the three months to the end of May, as one in ten private sector pay settlements resulted in a freeze in the past three months and two in five in the public sector.

John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development, said: “The squeeze in real income on households this year will probably be the worst. People will really notice it this year as RPI is running at round 5pc so it’ll make those small pay rises feel like a bigger squeeze.” [...]

During his evidence to the committee, Mr Dicks also conceded that the austerity measures included in George Osborne’s Emergency Budget last month had made a double-dip recession more likely. “Logically, the chances of that have increased,” he said. “Some measures will have reduced demand.”


Take this on top the 40% cuts in services and were in for very HARD TIMES.
Job losses, Interest rate rises, lower Wages, Public Services slashed.
When they talk about AUSTERITY ....

(Austerity is a term from economics that describes a policy where nations reduce living standards, curtail development projects, and generally shift the revenue stream out of the physical economy, in order to satisfy the demands of creditors. Typically, private banks, or institutions like the International Monetary Fund (I.M.F.), will demand an "austerity policy" from a national government, as a condition for re-financing loans that are coming due. This might involve cutting food or fuel subsidies, underfunding public infrastructure (transport, education, health care, water and power management), or rationing. When these demands are made by the I.M.F., they are known as I.M.F. conditionalities.)

Those who are up to their necks in debt are going to hit hard, those, like me, who are unable to work are going to be punished for Rich mens folly with the countrys finances and be expected to pay for it.

Those millions who have worked hard, saved, with Mortgages etc and call themselves "MIDDLE CLASS" will be joining those on Benefits.
Everything they have worked for and saved for will be worthless.
Trying to find a job will be even more difficult, especially with mass redundancies around the corner.
And how can they compete with the Immigrant cheap labour market ?
The "POSITIVE DISCRIMINATION" laws will mean finding a job nigh impossible for the Indigenous workers.
Your Childrens EDUCATION will suffer, our PENSIONERS will suffer, our SICK and DISABLED will suffer, YOU WILL SUFFER.

So get ready, tighten your belts, this is going to be one hell of a rollercoaster ride, but this rollercoaster is not on a pleasure beach, it's going to be everyones lives 24/7 - 52 weeks a year for god knows how many years to come.

But hey, don't complain about it...YOU VOTED FOR THIS.

1 comment:

Lanky Patriot said...

The government issued £200 billion in quantitive easing (printing money) and gave it to the banks.
They could have instead used this directly as loans to businesses for infrastructure instead of giving it to the banks for them to lend out at high rates of interest or build their balances up.
Until the banks are broken and the government controlls the money supply and interest it will always be the ordinary people who suffer while the parasitic bankers make £millions.