Should I spend or save? How is the economy doing for real
Although the government is telling everyone the economy is on the mend, the reality is the economy is still on the verge of a double dip recession.
The inflation figures don’t show the real picture. Yes, inflation has stopped rising as much as it did, but the metrics they share is a decline rate not a drop. To understand this imagine the economy as a plane, it would still be falling, just not as fast as it was before, but it’s still on its way down.
The reason for that is FTSE companies from insurance to netflix subscriptions has increased its price, in some cases without any real justification, yet wages for the average joe have not increased.
The interest rates are still higher than they should be, and they will have you believe you that it is inversely linked to inflation. But the government could have maintained a price freeze for everyday services. But boosting profits for corporates is costing the average taxpayer more.
It is true, big companies have a stranglehold around the government policies; not just with lobby groups, but as we saw with Liz Truss, by having the power to tank the stock market. This power comes from the amount of American companies that have taken over British companies; because they don’t really care about the Brits, they are just focussed on their bottom line.
With Christmas around the corner, they will need to be some changes, and the government will have to bring that ‘feel good factor’ back in the market to boost spending and confidence, in order to avoid this being labelled as the ‘winter of discontent 2′.
No winter fuel payments, fuel bills rising by £150 per household (today), higher credit cards payments and mortgages equals parents with no money for presents. This will make this winter, not only, one of the coldest but also a thrifty one.