The Resolution Foundation's Living Standards 2017 is an eye-opening look at the current state of the British experiment in allowing wealth inequality to expand without any check, to use a combination of austerity, the elimination of protection for tenants, reckless lending, offshore money-laundering and public subsidies for speculators to turn the human necessity of shelter into the nation's leading asset-class.
The result is that normal working people who bought property before hyperinflation in housing prices are now richer than they could have dreamed, and everyone else is much, much poorer. Meanwhile, the offshore investors -- including many criminals who are laundering their ill-gotten gains through the London property market -- are inflating the bubble to unheard-of size. Combine that with wage stagnation (which is really wage reduction, when your shelter bill is undergoing hyperinflation) and you have a recipe for wealth disparity that makes Dickens look like Karl Marx.
In a series of easy-to-understand charts, RF data show that income growth for workers is stagnating while housing costs are rising.
That double-whammy — housing costs and stagnant wages — are now the major source of inequality in Britain.
It is tough to understate how radically this has changed the country. In 1998, most people had a shot at owning their own home. Now a full half of the population — younger people, mostly — have almost no chance of buying property.
That has created two classes in Britain: property owners and people who are getting poorer. And, of course, the poor are largely paying rent to the rich.
Living Standards 2017: the past, present and possible future of UK incomes
[Adam Corlett and Stephen Clarke/Resolution Foundation]
There are now two distinct classes in Britain: Those who own property and those who are getting poorer [Jim Edwards/Business Insider]
(via Marginal Revolution)
In 2013, the UK coalition government of David Cameron's Tories and the Libdems' Nick Clegg launched a "Help to Buy" scheme that gave incredibly cheap, taxpayer subsidised loans to first-time homebuyers, who got their money interest free for five years and thereafter had to repay it at 1.75% interest.
The United Kingdom’s security minister, Ben Wallace, really gets Lord Varys from Game of Thrones, you know? The Spider had it going on, man. He was hip and, also, with it. That imaginary man who had his love pump lopped off knew from HUMINT, apparently. From The Telegraph: Ben Wallace says there is “increasing scope” […]
It's been two years since the Grenfell tower block in north Kensington burned, killing at least 72 people: the blaze revealed deep corruption and indifference among Britain's richest people and the millionaire Conservative politicians who do their business in Parliament, from the fact that the highly flammable cladding responsible for the blaze was added so […]
Whether you’re an artist, designer or just organizing a photo album, photo editing software is a must. And software designers know it: Platforms like Photoshop and Lightroom have a ton of helpful features, but you’ll pay for them in spades. Luckily, there’s some competition in the photo editing arena. Right now, Skylum’s Luminar software is […]
Who needs a holiday sale? Sometimes there’s no better time than the thick of summer to find deals. We should know – we’ve found ten deep discounts on some must-have items. Whether you’re searching for CBD edibles, exercise gear, chargers or other tech, take a look. But don’t look long – these prices aren’t likely […]
Heading abroad? Even if it’s just a short trip, there’s a lot to prepare for. Travel can be incredibly rewarding, but it can tricky to navigate different cultures and lodging arrangements – and even trickier to do it cheaply. Before you go shopping for suitcases, here’s our pick for a good first investment: The Ultimate […]