John Ward December 3, 2014 BREAKING: UK growth slowing down + majority of wages are falling

BREAKING: UK growth slowing down, majority of wages are falling

Despite the Cabinet Office’s persistence in telling us otherwise, these are the topline facts from the ONS data released 10 minutes ago regarding the Q3 economy:

Real wages are falling faster in middle and lower level jobs, which are greater in number than professional occupations. Ergo, most of us are worse off as a result of this “recovery”.

The rate of this recovery is decelerating fast: it was 3% year on year, but only 0.7% quarter on quarter. Ergo, it is running out of steam.

Within the 3% YOY growth, fully 2.6 was in services, not manufacturing. Ergo, the Coalition has failed completely to rebalance the economy

Real productivity continues to disappoint:probably a combo of poor plant investment and disgruntled workers.

This is called bollocks deconstruction. Now watch as Camerlot spins something else out of it.

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1

Garet Jax on December 4, 2014 at 8:28 pm

It also bought gazillions of votes as vast numbers of people were given something for nothing…..”government money” & not your neighbours tax contributions !
It is reaching the point when the “social” will have to return to its original purpose as a safety net for those who have made a fair contribution being given temporary assistance when they fall on hard times.
First thing to go must be child based handouts – we are overpopulated and should not be encouraging any further increase at least until we can handle all who are here now !

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2

Garet Jax on December 4, 2014 at 8:11 pm

Talking to a friend of mine on a zero hrs contract…. When the main wage increased all had performance reviews moved to the month before it happened….. Performance rise got wiped out by main wage increase……. These scumbags who use zhc’s need some serious damage doing to their wealth or freedom – whichever hurts them the most and for the longest time.

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3

Chris bartelt on December 3, 2014 at 10:14 pm

Aah…. Pride comes before a fall.

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4

the ghost on December 3, 2014 at 9:14 pm

It may not be efficient even corruptible but i do believe that Press keeping a check on politicians & judiciary, politicians keep in check judiciary & press & the judiciary keep in check politicians & press,if you submit Commerce for press &unions for judiciary ,each mutually fighting for the right balance each being prepared if necessary to give up gains that have damaged the equilibrium of the economy,that doesn’t mean everyone is equal for that is also damaging,but to curb the excess of each arms ideology to thrive above that of the other arms

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5

kfc1404 on December 3, 2014 at 8:02 pm

Funny really, the US $18T in debt but, if they succeed in the military dominance that they so desire, who’s to call in the debt?
Short of a ‘divine intervention’ we are all f*cked, the US will rule the World.

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6

NorthernSpirit on December 3, 2014 at 7:53 pm

“Please everyone do not vote for the main parties.”

Vote blank!

http://www.blankvote.org.uk/blank_votes_count.html

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kfc1404 on December 3, 2014 at 7:38 pm

And, as an aside, the US is investing so much in technology that it is unlikely that they won’t be top dog militarily for the foreseeable future, and with that in mind, God knows what effect that will have on the rest of us…Oh, I know, do as we say or die…

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kfc1404 on December 3, 2014 at 7:34 pm

Agree entirely, unfortunately their ‘tossing’ results in us paying..

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9

Lampitt. on December 3, 2014 at 6:54 pm

Was reading notes of an interview with Jim Rickards in which he states that in the 50s and 60s one dollar borrowed produced $2.41 of growth. By 70s 80s that had dropped to $0.4 and currently $1 dollar of borrowing gets $0.03 of growth. Seems like QE hasn’t been the appropriate fix for quite some time. Tossers.

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DomesticExtremist on December 3, 2014 at 6:51 pm

Working Tax Credits has to be the single most catastrophic error made by Brown.
Although dressed up as a way to help the low paid, they are in fact a massive
subsidy to corporations and a massive drain on the nations finances.
Someday they will have to be abolished, but we can be sure it won’t be a Tory
chancellor that does it.

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11

desmond on December 3, 2014 at 5:24 pm

a job means work that pays enough to enable the worker to live and return to work the following week. Everything else is not a proper job. full time working that does not pay enough to live on is robbery subsidized by taxpayers. zero hours so called contracts are not proper jobs. they are the beginnings of slavery and should be outlawed. people need proper jobs and not rubbish so called jobs. we have a situation where taxpayers hard earned money is given to companies to make up useless pay. politicians that are in favour of robbing workers like this should be penalized till they support workers. Please everyone do not vote for the main parties…

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12

Peter Charles on December 3, 2014 at 5:08 pm

Ah Ghost, hence my caveat “…. reduced and constrained as far as is humanely possible” in the use of the word ‘humanely’.

I don’t disagree that some regulation or form of control is required, although I prefer penalties and consequences on a personal level as the main method of control. The problems with government regulation are manifold. For a start most regulation, especially in the financial and essential services areas, is ‘guided’ by the people who are being regulated and are thus often toothless in protecting the man in the street while erecting barriers against competition from new players instead, thus being more about protectionism and the status quo than anything else. In other areas we have the situation where regulation is ‘guided’ by vested antagonists, Charities, organisations like Greenpeace, Trades Unions and so on that cause excessive costs and other burdens that the sheeple lap up when it is delivered as ‘taking undeserved profits from the disgusting, capitalist shareholders’. Of course the sheeple never seem to realise that it rarely has any effect on shareholders, instead it just bumps prices up for everyone, like fining quasi-nationalised organisations for wrongdoing does when sacking a few important people would have a much better effect. Nor do they realise that when it does affect shareholders it is just as likely it is their own pension funds that suffer

At root politicians and top Civil Servants are in general ignorant of real life, industry, supplying essential services and anything else not covered by their usually priviliged or prejudiced upbringings, often lacking even the limited common sense knowledge of the man in the street, and are thus the worst people in the world to write regulations, rules or laws. Not that the use of governmental technocrats rather than politicians a la the EU are much better.

I don’t have the answers but I do know that government is the worst organisation to give the power of governing which is why I would rather it was as small as possible and thus limited in the damage it can do.

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13

the ghost on December 3, 2014 at 5:08 pm

Workers arrive to take low paid jobs because of one simple reason a youth say leaving the North has to make himself homeless to take a job in London because the pay is so low,whilst a Eastern European is already homeless & gang masters know they are desperate for a place to live,so they can get housing benefit & even transport cost & modern slavery is born,whilst the youth from the North is demonizsed to hide this exploitation that they would expose,your business doesn’t subsidize workers, your workers do,wealthy people pay 14p for every ponds earned & workers pay 28p twice has much per pounds & on minimum wage,that means that these workers & millions of others who(clarke on bbcqt last week said the top 3% pay 21% of all tax) are denied Bastiat’s window of opportunity,clarke forgot to mention that same 3% own 95% of the wealth,so 95% of wealth pays 21% of tax whilst 5% of wealth pays 79% of the tax & you wonder why were in this mess
I think that the cart comes before the horse in that you generate wealth,well never before have the so called wealth creators have never had so much at there disposal,yet only war & poverty is being created out of it,simply because flat earth economics of fake values, & is a humanitarian disaster
wake up your many assets are worth less & less has poverty grows

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14

Hazel Lucas on December 3, 2014 at 5:00 pm

Professor. I agree. It makes no sense to subsidise a company’s low wages by topping those wages up using other taxpayers’ money. If the Government did away with tax credits, surely they could raise the tax threshold instead. They are always on about wanting people to be aspirational and I think this would help.

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15

Professor Metwetwe jnr on December 3, 2014 at 3:52 pm

Not to mention the fortunes we pay Brussels for the privilege..
Marvellous ain’t it..??

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Professor Metwetwe jnr on December 3, 2014 at 3:49 pm

So my business subsidises the low wages paid by my neighbours business, to people who come here to treble their income, pay no tax, take up our facilities to the detriment of bona fide contributors, but cannot speak a word or two of English…!!

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Professor Metwetwe jnr on December 3, 2014 at 3:46 pm

What is remarkable to us is the fact that all of these eastern european workers have arrived to take and lower wage rates for unskilled jobs. That personal tax allowance increases and Umbrella tax regimes ( expenses reimbursed ) linked to agency employers offering zero hour contracts allow these workers to flood the country, take up space in NHS and Education – yet…..they pay tiny amounts of tax if any.
Not only pay little tax, but qualify for Tax Credits to subsidise the low wages.

Quite astonishing really, and proof how out of touch the government really is.

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18

the ghost on December 3, 2014 at 3:07 pm

ps that obviously means am against government getting to strong either,that also needs counter balancing by F.A.I.R

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the ghost on December 3, 2014 at 3:04 pm

Were i disagree is in regulation or Government,i believe that if you have a strong commerce/trade union sector you need a counter balance,the only way peacefully change can take place to re-balance is through strong regulation which can only be enforced by strong government,to lose those condemns humanity to a medieval dark ages of powerful individuals imposing there will on all peoples.
government should be a counterbalance to vested interest whether union,commerce or any other,but to leave anyone sector to strong is not in the interest of humanity

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Impoverished Psychologist on December 3, 2014 at 2:02 pm

Well put. I think this is what most people on these threads are getting at, looking for someone else to fix your problems leads only to disaster. The worst problem is that many people show initiative but are stifled by the multi layered bureaucracy and punitive taxation.

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NorthernSpirit on December 3, 2014 at 1:54 pm

I believe it was Karl Marx who pointed out that the only thing a worker has to sell is his / her labour. When real wages are falling and people’s standard of living is reducing, you do not need a degree in psychology to know that ‘workers’ are simply putting the brakes on their productivity to reflect what they are now being paid. It is a form of passive resistance. As for those poor sods on Zero Hour contracts …….

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22

Peter Charles on December 3, 2014 at 12:55 pm

As Groucho Marx said, “Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.” What he should have added is, ‘and when things eventually improve despite their efforts in making
things worse, claiming credit for the improvement, or if there is no actual improvement, claiming they stopped it getting worse.’

The truly frightening thing is that sheeple while generally not actually believing them still continuously call for more government, more regulation and more spending. If you are one of the masses Government is not your friend, it does not work in your interests, it has no more idea of how to improve things than the man next door and should be reduced and constrained as far as is humanely possible (and that is not a spelling error ;-))

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23

best possible taste on December 3, 2014 at 12:44 pm

Flannel kid and the android mannequin next door couldn’t give a rats arse about the economic reality and its eventual consequences. Their sordid place in political history is secure, they’ll be off globetrotting on lucrative lectures, consultancies for multinational companies or just chilling out in the HoL. Nice work if you can get it.

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24

BobRocket on December 3, 2014 at 12:30 pm

Productivity has fallen because wages have fallen behind historical productivity increases, this was masked by people borrowing the shortfall prior to 2007.
Reduced worker hours to core (no overtime) and people start to realise that a below inflation pay rise is a pay cut, couple that with executive bonuses and share price rises and people feel that if they are to be paid less than last year then they will produce less.

If you give a fair share of the spoils of increased productivity to the workers, they will produce more.

Nowhere is this mentioned in any of the standard explanations

https://www.google.co.uk/?gfe_rd=cr&ei=fwF_VLr4KuOq8we8xYHADg&gws_rd=ssl#q=productivity+gap+uk

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25

Rowan on December 3, 2014 at 12:28 pm

Government to pay off WW1 debt!
http://www.bbc.co.uk/news/business-30306579

By issuing new debt!

But, but, but I hear you cry, how has one paid off ANYTHING if one debt has been exchanged for another?

Ha, they reply. Whatever made you think the debt was intended to be paid back? We still have debts on our books dating back to William Gladstone and the South Sea Bubble nearly 200 years ago! We are thinking of paying that off too, by issuing some new debt to replace it. Of course, in the future someone will have to constantly roll over these new debts we are creating as they will be dated not undated, but we won’t be in office by then and in the meantime we can claim to be saving money on the interest so win win all round really, the people who hold those old bonds don’t really need the interest and our mates in the city are desperate for “good” debt for some reason, can’t think why offhand…

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Impoverished Psychologist on December 3, 2014 at 11:35 am

To be honest it is pretty sad that people can’t see through the government gibberish. The fact that China and the EU are in various forms of big trouble should be indicator that there are huge issues in the globalised system.

To think that by some clever artifice we here in the UK can generate prosperity is a deus ex machina too far, we have simply opened the taps on a housing bubble that cannot be sustained ad infinitum.

As the data describes above, wages are not growing and therefore consumption is unlikely to follow suit, what we really need are new paradigm changing technological advances, not incremental development of existing products.

What we need to remember is that a lot of the technology we consume now is based upon space race and cold war technology from the 50s-80s. These technologies were developed at astronomical cost by governments, we must also remember that for every successful project there were dozens of turkeys, all of which had huge resources invested in them and all had massive potential but didn’t quite make the grade in the final analysis.

Maybe if we threw governmental cold war type budgets at understanding exactly how the human mind works, how it stores information, how it recognises objects, performs reasoning tasks and then used this knowledge to engineer a completely new breed of computers based on this learning we might get to the next true era of economic growth but without change there can be no growth and right now despite being fed platitudes we do not have anything like the required climate.

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27

sdbast on December 3, 2014 at 10:44 am

Reblogged this on sdbast.

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28

joekano76 on December 3, 2014 at 10:07 am

Reblogged this on TheFlippinTruth.

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