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[Finance] 'Possible' BofE Base Interest Rate Rise this Thursday .....



wellquickwoody

Many More Voting Years
NSC Patron
Aug 10, 2007
13,803
Melbourne
I've posted this before

flat 1992 4x salary
cottage 1999 3.5 times salary
house 2003 - 4 times joint salary
same house now 8 x joint salary ( house has tripled in value and some, my salary hasn't changed!!!, thankfully Mrs Zefs has! )

Why has your salary not changed in 19 years?
 








zefarelly

Well-known member
NSC Patron
Jul 7, 2003
22,485
Sussex, by the sea
Why has your salary not changed in 19 years?

It has but different jobs, different locations, different perks, or not, like cars, it's been up and down, so right now I'm earning £3k a year more than I was in 2003, which is a considerable cut in real terms.

I rencently took a cut for a local job, something I've done before, the saving being my time, an hour a day . . .

The long and short is many industries salaries have stagnated here, particularly engineering. There's more competition for places . .one recruiter suggested I move to the Midlands, better money, more jobs and cheaper living. . . you can guess my response :rolleyes: I'd rather move to Aus.
 






Machiavelli

Well-known member
Oct 11, 2013
17,458
Fiveways
The post you quote is indeed a decent analysis. I’m just not sure things have changed, rather people have either forgotten or unsustainable risk has been taken because Government policy for a generation has been to seek short term economic growth through low interest rates (which under values risk) and ever increasing labour supply (which depresses wage inflation). I appreciate there is a generation out there who have never seen the interest rate tool in action but it is there and the consequence of not using it at the moment would be inflation running out of control. We lost money on our first house (which was in London) because interest rates were used to dampen spending and house prices. Many people suffered negative equity. This hasn’t happened for a long time but it may be coming because risk needs to be correctly priced.

Surely you oldies have a grasp of economic history: growth has been dismal over the past 15 years by historic standards, and wasn't up to much for the 25 years before that in comparison to the postwar years.
 


Neville's Breakfast

Well-known member
May 1, 2016
13,437
Oxton, Birkenhead
Surely you oldies have a grasp of economic history: growth has been dismal over the past 15 years by historic standards, and wasn't up to much for the 25 years before that in comparison to the postwar years.

Of course, but generating growth when rebuilding from a low base with reconstruction from a war was the (relatively) easy part.
 


wellquickwoody

Many More Voting Years
NSC Patron
Aug 10, 2007
13,803
Melbourne
It has but different jobs, different locations, different perks, or not, like cars, it's been up and down, so right now I'm earning £3k a year more than I was in 2003, which is a considerable cut in real terms.

I rencently took a cut for a local job, something I've done before, the saving being my time, an hour a day . . .

The long and short is many industries salaries have stagnated here, particularly engineering. There's more competition for places . .one recruiter suggested I move to the Midlands, better money, more jobs and cheaper living. . . you can guess my response :rolleyes: I'd rather move to Aus.

Fair play.

Just interested in your sums really. I was lucky enough to buy in 98/98 and sell in 2016, but my home more than quadrupled (this then got decimated by Brexit, but hey ho). Seeing as the house prices rises in the UK in the last 5 or 6 years have been pretty strong I was surprised that your home had not seemingly increased accordingly.
 




zefarelly

Well-known member
NSC Patron
Jul 7, 2003
22,485
Sussex, by the sea
Fair play.

Just interested in your sums really. I was lucky enough to buy in 98/98 and sell in 2016, but my home more than quadrupled (this then got decimated by Brexit, but hey ho). Seeing as the house prices rises in the UK in the last 5 or 6 years have been pretty strong I was surprised that your home had not seemingly increased accordingly.

Our home has, we paid 250 in 2003 . . . We have extended etc but at least 3 times that now, which is bonkers. All it proves is property and wages are worlds apart from where they were even 20 years ago
 


Neville's Breakfast

Well-known member
May 1, 2016
13,437
Oxton, Birkenhead
The tory middle classes don't do that, they cause it! :lolol:

Another top post from you. I was a member of the Labour Party and the Young Socialists in the 1980s. Attended a conference of the YS at the Brighton Centre in around ‘84. Spent a lot of time leafleting and talking to people on doorsteps at election time. How about you ?
 


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