by linlithgowoil » Thu 06 Oct 2005, 06:27:08
$this->bbcode_second_pass_quote('', 'M')edieval peasants worked less because their extra work didn't do anything to improve their lot in life. They couldn't accumulate capital.
In the past few years, most ordinary people in my situation (graduated a few years back, tons of debt, above average salary) who dont own a house actually cannot accumulate capital.
The cost of living in the UK is such that your average person below 30yrs old has zero savings and a mountain of debt. Therefore, most of these people will spend the next decade paying off debt rather than saving up cash/buying a house. This is in stark contrast to the previous generation who enjoyed practically zero debt (no such thing as student loans, it was all paid for by the government), cheap houses, and lower living costs.
So, this current generation that i am part of will be one of the first not able to accumulate capital to any great extent. Things are far more difficult these days, and most housing is now owned by fewer people (2/3 or more homes owned) - thus there has been a transfer of housing wealth to fewer people/bodies.
I think housing is actually a bigger problem than peak oil at present. In my local town, a 'great first time buyers opportunity' house usually goes for around £90,000 at the minimum. The average wage here is around £20,000 - though that is misleading - most 'normal' people are actually paid a lot less. You can get a 100% mortgage for around 3-3.5 times your salary. So, if you're earning £20,000, you can get a mortgage of around £70,000 at most. If you are a couple, with a normal household income of around £35,000 or less, then you get 2.5 times your combined income which equals £87,500. So, you cant even get a 'starter home' with the average wage.
So - most people dont bother, and just blow all their money on holidays etc. There are big problems ahead....