Last month saw UK unemployment fall to its lowest levels since the economy nosedived during the 2008 banking crisis but, as the Guardian report, wages have continued on their own downward trend after inflation is taken into account.
To me this begs the question of whether we should be celebrating or lamenting this most recent of news. On the one hand, more people in work is obviously a good thing and for those who have found some form of paid work employment, there can only be happy thoughts going through their heads. No more trips to the local Job Centre Plus offices and no more feelings of self doubt as they collect their benefits.
But, from a broader sense, when looked at from the level of the whole society, is the stagnation in wages really something to worry about?
The rational side of my brain has differing opinions depending on which facet of the problem you look at. On the one hand, people having less money to spend isn’t necessarily a bad thing; assuming that they are able to put a roof over their heads and feed themselves and their families, then money shouldn’t be such a big issue.
In a way, it will help us to get back to the times when we weren’t all wealthy enough to enjoy flatscreen TVs and multiple holidays each year. We might be able to regain some of the ability we used to have that allowed us to enjoy our time just as much as we did during the boom years, but without the huge costs.
When I was a kid, I used to ride my bike around and play outside with my friends for hours on end. Was I less happy than children these days who play on expensive games consoles? No, of course not, I enjoyed my childhood immensely. But the cost of a bike pales in comparison to the things that kids have come to expect these days.
Our family holidays were modest with weeks spent on a caravan park or in a chalet very much the norm for us. And we were lucky if we got more than one a year. Nowadays it seems like hopping on a plane three or four times a year is becoming the norm.
On the other hand, I am greatly concerned about the state of our welfare system and, in particular, the pension pot. When people are unable to make their own provisions by putting some money aside each month, their retirement will have to be fully funded by the state pension. This is a paltry amount, especially in winter when there are yearly reports of senior citizens having to choose between heating and eating.
And the situation is only going to get worse as the demographics of the UK change with fewer working age people supporting a growing number of pensioners. Can the tax system cope with this?
Thus, I am torn because, in one sense, I am not too sad to see the back of the wasteful affluence we have come to expect in our society, but at the same time I believe we are sleepwalking into a welfare timebomb.
What’s the answer? I really don’t know – but I don’t think the politicians know either which is worrying because they are meant to plan for the future. I guess the problem with having elections every 4 to 5 years is that long term issues such as pensions don’t feature high up the priority list.
Still, more people in work has to be good news for now right?
To me this begs the question of whether we should be celebrating or lamenting this most recent of news. On the one hand, more people in work is obviously a good thing and for those who have found some form of paid work employment, there can only be happy thoughts going through their heads. No more trips to the local Job Centre Plus offices and no more feelings of self doubt as they collect their benefits.
But, from a broader sense, when looked at from the level of the whole society, is the stagnation in wages really something to worry about?
The rational side of my brain has differing opinions depending on which facet of the problem you look at. On the one hand, people having less money to spend isn’t necessarily a bad thing; assuming that they are able to put a roof over their heads and feed themselves and their families, then money shouldn’t be such a big issue.
In a way, it will help us to get back to the times when we weren’t all wealthy enough to enjoy flatscreen TVs and multiple holidays each year. We might be able to regain some of the ability we used to have that allowed us to enjoy our time just as much as we did during the boom years, but without the huge costs.
When I was a kid, I used to ride my bike around and play outside with my friends for hours on end. Was I less happy than children these days who play on expensive games consoles? No, of course not, I enjoyed my childhood immensely. But the cost of a bike pales in comparison to the things that kids have come to expect these days.
Our family holidays were modest with weeks spent on a caravan park or in a chalet very much the norm for us. And we were lucky if we got more than one a year. Nowadays it seems like hopping on a plane three or four times a year is becoming the norm.
On the other hand, I am greatly concerned about the state of our welfare system and, in particular, the pension pot. When people are unable to make their own provisions by putting some money aside each month, their retirement will have to be fully funded by the state pension. This is a paltry amount, especially in winter when there are yearly reports of senior citizens having to choose between heating and eating.
And the situation is only going to get worse as the demographics of the UK change with fewer working age people supporting a growing number of pensioners. Can the tax system cope with this?
Thus, I am torn because, in one sense, I am not too sad to see the back of the wasteful affluence we have come to expect in our society, but at the same time I believe we are sleepwalking into a welfare timebomb.
What’s the answer? I really don’t know – but I don’t think the politicians know either which is worrying because they are meant to plan for the future. I guess the problem with having elections every 4 to 5 years is that long term issues such as pensions don’t feature high up the priority list.
Still, more people in work has to be good news for now right?