European Tribune - Comments - 3 million workers fear unemployment

3 million workers fear unemployment | 12 comments (12 topical, editorial, 0 hidden)

Re: 3 million workers fear unemployment (4.00 / 2)

And thinking that the solution might be actually fairly easy. Increase salaries so that people have the money to spend. Reduce top salaries and with the left over employ more people so more people can earn money that can be circulated.

Don't know, I am not an economist and it might just be a, as we say here, Milchmädchenrechnung (Milk maiden accounting). :-)

by Fran (fran at eurotrib dot com) on Thu Aug 28th, 2008 at 10:14:14 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 1)

I'm finding it difficult to avoid making some lewd comment about accounting for all the milk maids. I shall resist.

by Colman (colman at eurotrib.com) on Thu Aug 28th, 2008 at 10:15:54 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 1)

Don't you know Keynesianism is passé? We're all monetarists now - or something.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Thu Aug 28th, 2008 at 10:18:58 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 1)

A huge government programme of affordable rent social house building would help. Not privatised, not contracted out, but people directly employed to build houses of the type needed in the places where need is greatest.

but ever since thatcher sold off the council houses, low waged accomodation opportunities have been wrecked and the labour party are too scared of the Daily mail to do what is necessary.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Thu Aug 28th, 2008 at 10:20:37 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 0)

Yes, but that's not going to solve the problem. It'll just soften the blow. At the end of the day, it's the same story as America, but with even higher household debt levels and an even greater fall in house prices needed to bring real estate back into the realm of sanity.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Thu Aug 28th, 2008 at 10:32:19 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 1)

Yesterday there was some panicky story or other in one of the London free commuter newspapers. Roughly, the average price of a property in England (don't ask how that average is computed for all properties in all of England...) was about £180k and now that lenders are requiring 40% down for a mortgage, the average (don't ask) borrower would need to save up "two years' take-home pay". So we're talking about an "average" property value of 5 years' take-home pay for the average borrower. Ouch.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Thu Aug 28th, 2008 at 10:36:52 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 0)

That's not surprising. It's closer to ten to twelve years' pay in London (median income ~GBP30,000 vs median house price GBP300-350,000).

Absolutely insane.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin

by Drew J Jones (myfriends@thisispancakes.com) on Thu Aug 28th, 2008 at 11:04:41 AM EST
[ Parent ]

Re: 3 million workers fear unemployment (none / 1)

What is a sane ratio? Assuming you allow 3x take-home pay for the loan value and you require 40% down payment you get the current "average" figure of 5x take-home pay for the property value.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Thu Aug 28th, 2008 at 11:17:13 AM EST
[ Parent ]

3 million workers fear unemployment | 12 comments (12 topical, 0 editorial, 0 hidden)

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