And to think austerity sounded so attractive only a year ago. The Conservative program is only now starting to kick in so it's bound to get even worse for everyone. But once again, at least the bankers are fat and happy with their pay that has not missed a beat. How fair is that?
Roger Bootle, a former government adviser who now works with Deloitte, the accountancy firm, predicted that 2011 would be the worst year for household finances since 1977 – and added that if interest rates were to rise, British families would not have seen conditions deteriorate so badly since 1952.Maybe someone could also explain how a country with severe financial problems could afford another freeloading event by the royals. The financial loss of having the country on public holiday last Friday for the royal wedding where they dressed up in Disney-like uniforms and marched in front of dictators and torturers was surprising considering the state of public finances.
Mr Bootle's warning, published in Deloitte's latest economic review, reflects the impact of higher inflation and taxes on people's incomes, as well as increased joblessness, with the economist not optimistic that the private sector is capable of offering works to all those likely to be laid off by the public sector this year.
"Real incomes do not provide the definitive picture as to the health of households' finances, but taking a broader look at households' finances arguably leaves the position looking even worse," said Mr Bootle. "I think this year will see falling real earnings, falling real house prices and rising unemployment."
In addition to higher income taxes for most people in work, Deloitte pointed to the fact that inflation is running at 4 per cent, much faster than the rate at which pay rises are being awarded. While inflation is expected to fall back before the end of 2011, it may not be until 2012 that wage increases catch up.
Where did the money come from to pay for security? Obviously the right wing government doesn't really think things are that bad if they can afford to fund the royal circus. Of course there was money made from the vendors selling kitsch plates and mugs celebrating the event but it hardly comes close to the loss of productivity. Is it really more important to fund the egos of the freeloading royals over programs for the middle class and poor? Clearly the Tories aren't taking the finances seriously enough.
