Wednesday, August 06, 2014

The legacy of Gordon Brown

Very interesting session looking at cost of living.

The subject had an average salary that had remained static since 2008.

He had credit card debts of £18,000 - roughly matching the decline in his salary due to inflation since 2008.

Because of his good credit rating he had been able to cope with the decline in value of his income by borrowing on his credit cards.

It rather looks like the legacy of Gordon Brown has been to solve the problem of state debt by pushing the burden onto individuals (quantitative easing reduces the value of the pound sterling thus leading to rising prices in key areas such as petrol and food, thus reducing the value of salaries and wages).

This is Labour's catch-22 they have left us.

Interest rates therefore cannot go up - the consequences will be catastrophic.

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