Increasing wages boost morale, economy | 18 comments (18 topical, 0 editorial, 0 hidden)

Re: Increasing wages boost morale, economy (none / 0)

The trouble is, if inflation is a measure of a "rise in the cost of living" and most of the country is living off debt, then in some ways, a rise in interest rates is a rise in the cost of living...

by Metatone (metatone [a|t] gmail (dot) com) on Wed Jan 17th, 2007 at 06:19:17 AM EST
[ Parent ]

Re: Increasing wages boost morale, economy (none / 0)

Good thing the Bank of England uses the CPI (which excludes mortgage payments) instead of the RPI for its inflation targets.

If people are living off debt higher interest rates will indeed dampen demand.

"It's the statue, man, The Statue."

by Carrie (migeru at eurotrib dot com) on Wed Jan 17th, 2007 at 06:23:18 AM EST
[ Parent ]

Re: Increasing wages boost morale, economy (none / 1)

snarking aside, the 0.25% rate increase so far seemed to be pretty meaningless. The figures I saw for what it added to a typical monthly mortgage (£60 a month) didn't seem enough to make much of a dent in a the lifestyle of someone earning enough to get that mortgage in the first place.

by Metatone (metatone [a|t] gmail (dot) com) on Wed Jan 17th, 2007 at 06:37:56 AM EST
[ Parent ]

Re: Increasing wages boost morale, economy (none / 1)

You're assuming that the person with the mortgage could afford it. It depends how close they pushed their luck.

by Colman (colman at eurotrib.com) on Wed Jan 17th, 2007 at 06:42:20 AM EST
[ Parent ]

Increasing wages boost morale, economy | 18 comments (18 topical, 0 editorial, 0 hidden)

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