AIBU to be totally confused (cost of living crisis)

[LittleBitHeiressLittleBitIris]

AIBU to not be able to understand/ grasp the scale of impending disaster that is building over the increased cost of living?

I genuinely don't see how millions of people with outgoings that are about to be actually higher than income is going to play out.

I'm not trying to be goady and obviously realise no-one has a crystal ball but am I missing something? Has this ever happened before in other recent times/ other cultures and what was the result. I can't even imagine what could happen.

I feel really clueless! Any ideas/ opinions/ further reading much appreciated 👍

www.gov.uk/record-keeping-for-employment-agencies-and-businesses/storing-and-accessing-records

@alltheapples

It reminds me of the 1980s in parts of the country decimated by Thatchers' policies. I lived on a council estate and loads of people had their heating turned off and used those awful paraffin heaters to heat one room in the house. Ice on the inside of windows in the winter was commonplace. Most kids did not do any paid activities except for maybe cubs and brownies. And the food was basic and cheap. And we had the threat of nuclear war then as well.

It is shit and it is because of the government we have. They do not care about ordinary people at all. Lots of people will suffer even more. And you will still get well off people on places like MN patronising and lecturing those struggling.

I grew up in the late seventies and eighties and in remember this. My parents had a calor gas heater in the room and it smelled awful. My dad ended up ripping the fireplace out so we could have an open fire because the calor gas was too expensive. We didn't do any after school activities. And the car was just for dad's work.

You seem very accepting and defeatist in the status quo and the idea that things are going to go rapidly downhill to the Victorian era again and you don’t think that there’s anything else can be done about it.

What do you suggest? This is going to be a global economic downturn. Obviously there won’t be a return to the 19th century but we could easily be at 1970s levels. How do you think we can prevent it?

@VampireMoney yes I lived like that. No paid-for activities at all. Never any more than 2 pairs of trousers, very few clothes overall. It was essentials only paid for, nothing more. I know you can live that way, but awful to be going back to it. Those times should be in the past.

Some people's expectations of life have got out of hand in the last 20 or so years. There are many who drive about in the biggest 4x4s probably on lease, they sport the most expensive designer / in trend coats etc and trainers as do their children who seem to always have the latest phone models as well as the latest 150 Pound sweatshirts. They are always in Dubai or Orlando. The posts on here about takeaways and eyelashes and botox and fillers and beauty boxes and expensive make up and food - all this is a luxury. I listen to people in shops saying about a top "oh it's only 75 Pounds get it". Ive heard two young women discussing a credit card " oh well I just won't pay it back". As for anything like a pension " Oh no mate I live for today". It seems many people are actually financially unaware. Interest rates have been exceptionally low. The e mailing from companies is relentless - pay day treats etc .I live in an area of new houses and it is like some of these people do not know what to spend their money on - deck extension 15k, fish ponds, hot tubs , gazebos ( yeah we will put one up but then what will we do with it ? Oh yeah throw towels on it ). Let's not mention the Sky and all the extras. What about all the parties - the baby reveal, the ridiculous parties for children with wigwams and balloons and themes and the money spent on every single event from Halloween to Easter - let's not mention the Xmas boxes, the Valentine boxes , the tat that is sold on Sell Pages with chocolate bombs and sweets and general crap...There is a sense of what used to be known as keeping up with the Joneses - now it's all fuelled by "Insta" and FB postings. Someone mentioned the eating out and the cooking that is done or rather not done now. Coffee shops are full.

I do feel for those that are in abject poverty but there are many in this country who are obsessed with this material crap and will have to reassess their living.

In the 1970s there weren't that many restaurants, because eating out was a big treat reserved for special occasions. I regularly met young adults in the 1980s who had never been out for a meal ever.
The difference then was that there were far more things run totally by volunteers from mums and toddler groups to cheap jumble sales.

@MaryAndHerNet - so first of all you’ve linked to the wrong page that only applies to people that have actually been placed in roles by the recruitment agency - The one that might be relevant is this www.gov.uk/record-keeping-for-employment-agencies-and-businesses/records-about-workseekers
And it doesn’t specifically offer advice surrounding GDPR but it is the GDPR law that one can only retain anyone’s data for the period of the duration of the commercial relationship taking place, so if you applied for a role with me 10 years ago, five years ago, you could even say one year ago I no longer have a commercial reason to be in possession of your data.

@WisherWood

They have a majority, quite a large one. If most people didn’t vote for the Tories they wouldn’t be in power.

In the UK you can get into power with well under 50% of the vote. In fact, many governments do. It's because we have a FPTP system and a parliamentary democracy rather than a representative democracy. A majority in parliament is by no means reflective of a majority vote.

Absolutely. It amazes me how many people don't understand this. The Tories in 2019 got just under 44% of votes cast which represented about 30% of the electorate as a whole. I can understand it being pointed out that some people did vote for a party who we always knew were going to be more interested in their corporate mates than anything else, but the fact is that the clear majority didn't.

@ChickenStripper I read about all that on here. But I do not know anyone who lives like that. I do know people who don't bother with pensions which I can understand. Because if you can only manage to save a tiny bit of money its really not worth it.

[quote alltheapples]@ChickenStripper I read about all that on here. But I do not know anyone who lives like that. I do know people who don't bother with pensions which I can understand. Because if you can only manage to save a tiny bit of money its really not worth it.[/quote]
I don't agree with your last sentence . Any money that you can afford to save is worth it. Believe me no one wants to exist on 170 pounds a week pension - it would literally be gone with Council Tax, utilities and other basics alone.

@ChickenStripper my parents live on the state pension. My Uncle has a tiny pension and is worse off than my parents as he is not eligible for things like free prescriptions or benefit top-ups.
And only 44% of retiring people at the moment even get the full state pension. So it is easy to be in the situation where a small private pension is simply replacing what you would have got in benefits.
You need a decent pension to make a pension worthwhile.

For example, if you get sent speculative CVs and don’t use these work-seekers, you don’t have to keep the CVs.

Agencies don't have to keep records of CVS, but they can.
So anyone applying for a job through the agency can keep every CV they're sent for a year if they so choose.

They put up a decent job, get 200 CVS, keep them all for a year minimum and match them to jobs that come through, thus making them money from harvested CVs.

Horrible memories of calor gas heaters, the smell, the freezing bloody cold…

The Tories in 2019 got just under 44% of votes cast which represented about 30% of the electorate as a whole. I can understand it being pointed out that some people did vote for a party who we always knew were going to be more interested in their corporate mates than anything else, but the fact is that the clear majority didn't.

The majority didn't - but more people voted Tory than anything else. That's the trouble, the opposition is too divided. If Labour/Lib Dems/SNP/PC/Green etc all got together and agreed to field one candidate per constituency to represent all of them then maybe the Tories wouldn't win. They won't because they all have their own individual interests and spend as much time justifying why THEY are the best alternative to the Tories, as opposed to justifying why anyone would be a better alternative.

In any democracy I can think of it's not a straightforward case of the majority having to vote for something for it to win. In the Brexit referendum something like 38% of people voted for Brexit (I'm plucking that figure from memory), so 62% didn't. But that 62% was split between people who voted against it, people who spoilt their ballot and people who weren't motivated enough to bother to vote at all.

On the cost of living crisis, I think the 1920s comparisons are valid but actually it will be more like the 1930s. In the 20s there was something of a boom, consumer borrowing increased, and in the 1930s it all went wrong. People struggled to find work, those that did were poorly paid, and many had to rely on state benefits that were not really enough to live on.

What I think will happen is that people will mostly just cut their spending or borrow more. While people remain in work things will more-or-less carry on, but as people cut their spending businesses will go under and more will be out of work - leading to less spending, more businesses failing, more unemployment and the cycle repeats.

@MaryAndHerNet

For example, if you get sent speculative CVs and don’t use these work-seekers, you don’t have to keep the CVs.

Agencies don't have to keep records of CVS, but they can.
So anyone applying for a job through the agency can keep every CV they're sent for a year if they so choose.

They put up a decent job, get 200 CVS, keep them all for a year minimum and match them to jobs that come through, thus making them money from harvested CVs.

No Mary they can’t store the data @MaryAndHerNet

@ChickenStripper

Some people's expectations of life have got out of hand in the last 20 or so years. There are many who drive about in the biggest 4x4s probably on lease, they sport the most expensive designer / in trend coats etc and trainers as do their children who seem to always have the latest phone models as well as the latest 150 Pound sweatshirts. They are always in Dubai or Orlando. The posts on here about takeaways and eyelashes and botox and fillers and beauty boxes and expensive make up and food - all this is a luxury. I listen to people in shops saying about a top "oh it's only 75 Pounds get it". Ive heard two young women discussing a credit card " oh well I just won't pay it back". As for anything like a pension " Oh no mate I live for today". It seems many people are actually financially unaware. Interest rates have been exceptionally low. The e mailing from companies is relentless - pay day treats etc .I live in an area of new houses and it is like some of these people do not know what to spend their money on - deck extension 15k, fish ponds, hot tubs , gazebos ( yeah we will put one up but then what will we do with it ? Oh yeah throw towels on it ). Let's not mention the Sky and all the extras. What about all the parties - the baby reveal, the ridiculous parties for children with wigwams and balloons and themes and the money spent on every single event from Halloween to Easter - let's not mention the Xmas boxes, the Valentine boxes , the tat that is sold on Sell Pages with chocolate bombs and sweets and general crap...There is a sense of what used to be known as keeping up with the Joneses - now it's all fuelled by "Insta" and FB postings. Someone mentioned the eating out and the cooking that is done or rather not done now. Coffee shops are full.

I do feel for those that are in abject poverty but there are many in this country who are obsessed with this material crap and will have to reassess their living.

Lots of people will be able to maintain this lifestyle. You can't think it's all on credit? And if they do, so much the better for the economy and the jobs they support.

The way some people talk, you'd think they are looking forward to all this but this is an economic crisis for poorer families, it is not a squeeze on materialism or soft lifestyles or an environmental Hail Mary. Nor are you going to pick up a cheap house because some poor bugger defaulted on their mortgage - the desire for security will mean fewer people will shift and demand will continue to outstrip supply and whilst house prices will rise not rise they won't become affordable in any proper sense of the word.

Horrible memories of calor gas heaters, the smell, the freezing bloody cold…
The fire risk must be be bad as well?

I'm hoping it won't be as bad as the really high interest rates and people losing their homes in the 2000s. People have gotten very used to low mortgage rates so if they stay relatively ok then hopefuilly we'll weather it better than back then.

I just renewed on a 10 year fixed while rates are still relatively low. we'll try and pay it off by then (is a 15 year one but might be doable depending how the rest of all this goes)

[quote alltheapples]@ChickenStripper my parents live on the state pension. My Uncle has a tiny pension and is worse off than my parents as he is not eligible for things like free prescriptions or benefit top-ups.
And only 44% of retiring people at the moment even get the full state pension. So it is easy to be in the situation where a small private pension is simply replacing what you would have got in benefits.
You need a decent pension to make a pension worthwhile.[/quote]
If he's pensionable age he gets free prescriptions, they aren't means tested. I think at the moment it is free for anyone over 60 but if changing to retirement age soon.

[quote alltheapples]@ChickenStripper my parents live on the state pension. My Uncle has a tiny pension and is worse off than my parents as he is not eligible for things like free prescriptions or benefit top-ups.
And only 44% of retiring people at the moment even get the full state pension. So it is easy to be in the situation where a small private pension is simply replacing what you would have got in benefits.
You need a decent pension to make a pension worthwhile.[/quote]
Why does your Uncle not get free prescriptions ? Is he not over 60?
I myself was not going to get a full pension so did some calculations and paid some back payments. It was a better investment that the current interest rate. I was lucky in that I had the money to do so and I'm aware not everyone can. This article is useful.

www.workplacepensions.gov.uk/employee/workplace-pension-myth-buster/#it’s_not_worth_saving_into_a_pension

And more unemployment in some areas as hospitality suffers.
We didn't use to have a large hospitality industry in this country. Fish and chip shops, Chinese takeaways and cheap cafes with Formica tables, was for most people where they went unless it was a special occasion. Places like McDonald's that are cheap will still be fine. And high-end places will still be fine as the rich will still be doing well. It will be mid level that will be affected.

No Mary they can’t store the data @MaryAndHerNet*

If you say so... And as it's evident your putting yourself forward as a GDOR and recruitment expert, I'll let you continue.

I've answered and explained and provided links how parasitic agencies can make money, my point is made and backed up for anyone to read.

[quote alltheapples]@Bringsexyback yep I regularly see fake job adverts on my line of work too. They are fishing for people who they can try and match up to other jobs that do exist.[/quote]
So do I.

I even see adverts for jobs that can't possibly exist.

It's hilarious people who I assume are in the industry claiming this doesn't happen.

To be clear - I am not accusing any company or person - it's possible Hays don't do this as a larger responsible organisation, but it definitely 100% does happen.

@MaryAndHerNet

No Mary they can’t store the data *@MaryAndHerNet**

If you say so... And as it's evident your putting yourself forward as a GDOR and recruitment expert, I'll let you continue.

I've answered and explained and provided links how parasitic agencies can make money, my point is made and backed up for anyone to read.

GDPR does not specify retention periods for personal data. Instead, it states that personal data may only be kept in a form that permits identification of the individual for no longer than is necessary for the purposes for which it was processed. @MaryAndHerNet And it’s funny how all the agencies are parasites until somebody needs a job and then they get on the phone to them expecting them to act like the flaming job centre.

@ChickenStripper thanks for that link. Interestingly I still hear the myth about pension pots disappearing if firms go bust, because that did happen to many people until the government provided guaranteed backing. I spoke to one woman in MN who had twice lost a private pension pot in this way.
You may be right. But I am personally pretty cynical. And the idea that no one can live on a state pension plus benefit top ups is clearly false.