the chancellor uses to callculate it? It doesn't include rent, council tax or household water/fuel bills (which have soared to extortionate levels). It lists life's essentials as including cost of champage, leg waxes, mp3 players, plasma tv screens etc.
Is the chancellor having a laugh? Do'es he think we all live like socialites? They're not essentials to living, they're optional luxuries.
Talk about cooking the books, and fiddling the figures (nothing new to the lab party). And this man wants to be pm!
I think it should include the costs of the tax, rent, water and fuel; urgently so, to reflect the poor and pensioners true income. What do you reckon?
2006-09-08 22:35:25 · 9 answers · asked by Anonymous in Politics & Government ➔ Government
You are absolutely right, and it doesn't include petrol either. But, here's the rub. The Chancellor doesn't set the interest rate directly, but he has fiddled the inflation measure, as you have noted, so, indirectly he does control the interest rate, because the Bank of England set interest rates to stay within the Governments inflation target. The headline inflation rate has been artificially held down, therefore, as a consequence, so have interest rates. This low interest rate policy has led to massive credit card and mortgage debt, leading to a house price bubble, and an economy which has been artificially inflated. This is now starting to unwind.
This Chancellor is guilty of much more. Please search on my answer to the following question. "ARROGANT PREVARICATOR?" Thankyou.
2006-09-08 23:40:40 · answer #1 · answered by Veritas 7 · 1⤊ 0⤋
He Retail Prices Index has been with us a long time and was never intended only to cover life's essentials. It is a basket of goods that is meant to be representative of retail prices across the whole spectrum - some people do buy champagne and plasma TVs. The problem that it causes is when the government then uses the results as the basis of increases in the rates of Old Age Pensions and other state benefits as clearly the people that rely on this assistance are (or they should be) more concerned about essentials than luxuries. Perhaps it is time for a new index of essentials.
2006-09-08 22:50:45 · answer #2 · answered by ? 5 · 1⤊ 0⤋
Well that doesn't surprise me at all to hear that. As you say, all the essentials for living and surviving should be included, not the luxuries (that most of us can't afford because of the taxes that the self same government has forced upon us). But hey, perhaps the British people will see sense at the next general election and vote another party into power.
2006-09-08 22:51:34 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Kudos to you for taking the trouble to look into it.
I'm not a fan of Gordon ("control freak and psychological problems" said Charles Clarke) Brown, but the responsibility for the inflation indices lies with the Civil Servants, although politicians can influence them and the less that happens the better. Similarly the crime stats shouldn't be part of the Home Office, they should be part of Thes Office for National Statistics. Politicians of all stripes do this so it's good for democracy that people actually look into the figures.
There are other indices that take these factors into account, such as the pensioners one.
2006-09-08 22:57:58 · answer #4 · answered by WillORNG 2 · 0⤊ 0⤋
The inflation index is a tool used by the government to restrict earnings increases - especially benefits and pensions. The less it has in it's basket the less it has to pay out.
Look at it this way - if you were to guage your next months pay on the amount you spend this month you'd want this months pay to be spent on a basket of goodies bought from Marks and Spencer (so that your pay rose according to the value of that basket of shopping). What the government thinks is the opposite - you should base next months pay on the same goods but bought from Netto or Lidl.
Clear now?
2006-09-08 23:24:56 · answer #5 · answered by Phlodgeybodge 5 · 0⤊ 0⤋
I am sure the Fat Contoller (Brown) ensures that everything negative to his brilliant handling of the economy is deleted.
2006-09-09 01:00:42 · answer #6 · answered by Rob Roy 6 · 0⤊ 0⤋
I'll answer your question with a question. Do you know that here in the US the yield curve has flipped? We are headed for some deep poodoo.
2006-09-08 22:46:29 · answer #7 · answered by metalsoft@sbcglobal.net 2 · 0⤊ 1⤋
I couldn't agree with you more.
I always say how do you know a politician is lying,
when he speaks
2006-09-08 22:39:23 · answer #8 · answered by timone 5 · 0⤊ 0⤋
You tell'em,Honey!
2006-09-08 22:43:37 · answer #9 · answered by Putt 5 · 0⤊ 0⤋