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Increasing rates affects people with debt -- mortgage holders mainly, as personal loans are fixed for the life of the loan. We see calls to limit the wages of t
by ta1243 3y ago
Increasing rates affects people with debt -- mortgage holders mainly, as personal loans are fixed for the life of the loan. We see calls to limit the wages of those working people as if it's their income driving commodity prices up.
However we see both minimum wage and pensions increasing 10%+. Now sure those on minimum wage will spend it on something frivolous like food, but those on indexed linked pensions, who already pay far less tax per pound received than a working person, have even more money to spend.
Roll NI into Income tax, it will raise money spent and take it from those who actually have money to spare and are thus driving inflation by created demand where supply can't keep up. Throw in a land value tax to encourage people to utilise land better and thus reduce the cost of housing, and pretty much remove the planning system anywhere within 2 miles of a station with a <60 minute service to a major city.
- voisin 3y ago> Increasing rates affects people with debt -- mortgage holders mainly, as personal loans are fixed for the life of the loan. Not just people! Companies, municipalities and other levels of government too. These rate increases mean literally every entity in our over indebted nation is going to feel pain.
- ta1243 3y agoExcept the consumers driving inflation -- the ones who have little debt and are spending their inflation linked income like there's no tomorrow. The ones we refuse to hit with targetted tax
- kypro 3y agoForgot about the minimum wage. I'm certainly not opposed to increasing that, but forcing companies to hand out a 10% pay rise at a time when inflation is at record levels seems a little short-sighted. It probably should have been 5-6% to encourage a real decline in spending power. Not that it makes me happy to say.