Quote: Sal Paradise "We have very interest rates which keeps mortgages at very affordable levels we have very low inflation numbers, so whilst wages may not have grown household costs have actually dropped - lower fuel costs, lower food costs etc.
Lower corporation tax means company's have more available cash to invest - if you believe Keynes that is the start of growth in the 10 year cycle - whilst they may not give a damn they will if it keeps them in a job or it means the company has the available cash to pay them?
This is a culture that encourages the best to progress where earnings are basically limitless - so if you are really good this is a great country to maximise the earning potential of your skill set. Why else would so many want to come here as opposed to France, Italy, Spain, Greece, Holland Belgium?
Are you saying crime levels are rising?'"
Low interest rates are a moral hazard created by the excessive credit and its consequence - the 2008 crisis. Low-interest rates serve to reduce investment returns and so stifle investment. They also result in excessive debt burden being taken on - which will lead to another, deeper crisis. As to affordability, only for those with pre-existing mortgages - who are in effect being subsidised by savers and the prudent. For new borrowers, capital values are higher as a result (ie no more affordability. In fact, if you read a 21st century newspapers you may realise that young people are in fact priced out of the housing market in many areas even where earning several times the national average income).