I know I go on about it but my blood pressure went up yesterday when I heard Cameron saying that the fact that more people were employed 'proved' that the 'economic miracle' is working. This is a bare-faced lie. Not a word about the fact that so many of the phantom jobs are part time, zero hours contract or minimum wage, all of these not a living wage. Not a word about the fact that wage increases are running at about 0.7%, (ONS figures) and inflation at about 1.9% so in reality wages are falling further behind and disposable income is still falling. Add to this the fact that when interest rates go up it will further inhibit the retail spend and the 'miracle' looks like a slow motion car crash. (
LINK) In addition, the inflation figure takes no account of the fact that a larger proportion of low paid families goes on essentials and the inflation rate for these is probably about 10%. The lower 50 percentile are struggling and it will get worse. The growth areas will be food banks and benefit claims. I have never seen things looking bleaker for young families on low incomes. It is a tragedy building up which will have long term results.
No mention either about the fact that manufacturing output seems to be faltering. The reasons are less domestic spending and the strong pound hitting import costs and export sales. The EU is not healthy and this could be a growing factor. Remember what Mark Carney said, that the recovery is "unbalanced and not sustainable". Nothing has changed, in fact the depressing factors are getting stronger.
Lots of speculation about the entrails of the reshuffle. Time will tell..... I shall leave it to the commentators to milk them for all they are worth.
Oh! One piece of cheering news. Reports that Andrew Mitchell is one of the investors caught out by HMRC who have been participating in cunning wheezes to save tax. Good! Let's see more of the same! (
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