[HN Gopher] Poor people 'surviving not living' as UK social cont...
       ___________________________________________________________________
        
       Poor people 'surviving not living' as UK social contract collapses,
       says report
        
       Author : myshpa
       Score  : 105 points
       Date   : 2023-09-05 21:30 UTC (1 hours ago)
        
 (HTM) web link (www.theguardian.com)
 (TXT) w3m dump (www.theguardian.com)
        
       | xwdv wrote:
       | This is the danger of living somewhere with low salaries but
       | justifying it by low cost of living and robust government
       | welfare.
       | 
       | Once the rug is pulled and cost of living goes up or the
       | government sucks you're screwed. If you had a high salary you
       | could just pay your way out of this mess yourself.
        
       | Pingk wrote:
       | I can't speak to the poverty side, but anecdotally my colleagues
       | and I work in a high-tech profession and our salaries are hardly
       | competitive.
       | 
       | I'm earning less than 33K as a cybersecurity engineer and I'm
       | struggling to save up for a house, my student loan has increased
       | from interest since graduating, and I'm the frugal one at work.
       | 
       | UK wages have been stagnant for over a decade while the cost of
       | living has increased so much.
       | 
       | There are better paying companies I could move to, and I'm
       | keeping an eye out, but as the article states - there are
       | systemic problems in this country that the people in power are
       | failing to tackle.
        
         | krona wrote:
         | I can't speak to your circumstances but even graduate engineers
         | in the East/south-east of England wouldn't get out of bed for
         | <PS50k. Maybe you need to move.
        
         | hankchinaski wrote:
         | If you are not actively looking for a better paid job you
         | should. That salary for cyber anywhere in the UK is grossly
         | underpaid.
        
         | siquick wrote:
         | I had been considering moving back home after 10 years of
         | living in Australia so started researching wages for
         | Engineering roles and the salaries were so low, with the cost
         | of living nowhere near balancing out against the low salaries.
         | 
         | I'd expect a big boost in wages since they left Europe due to a
         | loss of available employable market but it seems the opposite.
        
           | SenAnder wrote:
           | > I'd expect a big boost in wages since they left Europe due
           | to a loss of available employable market
           | 
           | Despite Brexit having arguably been driven by immigration
           | concerns, immigration to the UK has _increased_ since that
           | vote, and reached a record of 606k in 2022 [1]. It has been
           | increasing since 1995, and in 2015 13.2% of the UK population
           | was foreign-born [2] - so not counting children of
           | immigrants.
           | 
           | [1] _Britain's record-high immigration -- in charts_ - https:
           | //www.ft.com/content/cb9120d8-0595-49d9-8f66-92b95acba... -
           | unpaywalled: https://archive.ph/Wqalm
           | 
           | [2] https://www.macrotrends.net/countries/GBR/united-
           | kingdom/imm...
        
           | FirmwareBurner wrote:
           | _> I'd expect a big boost in wages since they left Europe due
           | to a loss of available employable market but it seems the
           | opposite._
           | 
           | Salaries have spiked, immediately after brexit, but have
           | stagnated because no new investments are gonna happen in a
           | country that's separated from the EU single market, so all
           | new big tech has decided to expand instead to Amsterdam,
           | Dublin and Berlin.
        
             | ilikerashers wrote:
             | London is still the best in the EU for tech salaries.
             | They're just flat and have been so for the last year.
             | 
             | 33k is pretty low for cyber security but there is this:
             | https://metro.co.uk/2023/03/30/hm-treasury-listed-head-of-
             | cy...
        
         | isaacremuant wrote:
         | 33k is criminal, mate. You may be dealing with stuff and not
         | want to "switch" right now but, find a short/mid term plan to
         | switch because, even though UK is not US in terms of salary,
         | it's also not Spain. The cost of living is very high not to
         | have something that feels at least moderate.
         | 
         | You and your mates don't work in a "high tech profession"
         | typical if they're being scammed with those salary ranges.
         | That's not normal.
         | 
         | Now, the UK is definitely going to shit in terms of social
         | contract and taxes, fueling wars and corrupt bureocracy instead
         | of betterment of society, but that doesn't change the fact that
         | the salary you have should not be such.
        
         | rahimnathwani wrote:
         | A few thoughts that I hope are helpful:
         | 
         | - remove irrelevant non-tech jobs from your CV and LinkedIn,
         | even if they were long stints
         | 
         | - I don't know the market for cybersecurity engineers, but I
         | guess that it might be too narrow of a niche in a small country
         | 
         | - don't just 'keep an eye out': actively look for jobs; also
         | consider that some US companies are willing to hire remote in
         | the UK
         | 
         | - given you already have some python experience and a strong
         | mathematical background, my suggestion would be to learn as
         | much as possible about software engineering and data science,
         | and consider building a career in one of those fields; most
         | people can't study stats due to weak math foundations, but you
         | don't have that problem
         | 
         | - if you don't think a remote job is a good fit for you,
         | consider moving to London
         | 
         | - surround yourself with smart, hardworking people
        
         | retrac98 wrote:
         | This seems very low for the job, even for the UK.
        
         | cyanydeez wrote:
         | Failing is putting it lightly.
         | 
         | Conservative governance is the opposite of supporting people as
         | individuals and worse as population.
         | 
         | They're going backwards as a social politik
        
         | api wrote:
         | I ask this all the time: how can real estate costs in
         | particular be so high with these wages?
         | 
         | SF gets all the press for having loony real estate costs but vs
         | wages it's actually not the worst. The craziest places are
         | those with $1-2M starter homes and low pay.
         | 
         | How can a market even exist?
        
           | Jochim wrote:
           | Landlords and foreign investors.
        
           | throwawaysleep wrote:
           | My theory is the change in cultural demographics.
           | European/North American parents find it weird to help their
           | kids buy housing. In Chinese culture, that is very much the
           | norm. My Indian friend will get his down payment from his
           | parents.
           | 
           | So people don't need to buy housing with their own resources
           | in many cases. It can also include the resource of two more
           | people, or even 6 more people (grandparents chip in).
        
             | isaacremuant wrote:
             | > European/North American parents find it weird to help
             | their kids buy housing.
             | 
             | This is absolutely not true. I don't know where you're
             | taking this from.
        
               | ticviking wrote:
               | In North America its often considered "crippling"
               | children to give them too much help. I've seen it
               | repeatedly, with some families giving children 3 months
               | after graduation to begin paying rent.
        
               | throwawaysleep wrote:
               | Everything from parents kicking their kids out or
               | charging them rent at 18 (or ever) to anecdotes from
               | North American friends of how they got pushed out of home
               | to pay rent while in university.
               | 
               | The endless lectures of Dave Ramsey on not wanting to
               | provide a "hammock" for kids are also an abundant source
               | of information.
               | 
               | North American parents won't consistently have a college
               | fund for their kids. Also planning to pay for the down
               | payment on their home is absolutely not normal for them.
        
               | ecshafer wrote:
               | Coming from a working class / poor background it
               | absolutely is true. Until I graduated and working in a
               | wealthy area with upper middle class background people, I
               | had never heard of anyone having their parents pay for
               | their house. This is really split based on how Wealthy
               | your background is.
        
           | ilikerashers wrote:
           | Not generally bought by salaries. Family money,
           | investments...
        
           | beezlebroxxxxxx wrote:
           | It's similar to other places, like Canada. Demand far
           | outpaces supply. This leads to what I call a "propertied
           | spiral", where people with property (propertied class) are
           | enormously in favour of protecting the market value of their
           | property to the point of constraining attempts at increasing
           | supply (often but not always), where people who are just able
           | to afford property live with quite a bit of precarity and
           | large debt to income ratios, where people who are just unable
           | to afford are still renting, which heightens demand on rental
           | properties, pushing rents higher (because of the supply
           | constraints), which squeezes even hard on people who are
           | barely able to survive. And so on and so on. This is actually
           | a picture of most real-estate markets pre-WWII, if I
           | understand right.
        
           | michaelt wrote:
           | The government is more than happy to use inane schemes like
           | "government-backed loans for 20% the cost of new-build
           | properties" to prop up the market and ensure house buyers end
           | up with the absolute largest amount of debt possible.
           | Somehow, these schemes are then marketed to voters as
           | "helping first-time buyers"
        
             | kalupa wrote:
             | which new build properties? there's a massive lack of
             | supply and a huge amount of demand
        
           | bandrami wrote:
           | It's a deal with the political devil: if people view their
           | house as an investment, housing prices _must_ rise faster
           | than inflation, or they 're a horrible investment. But if
           | they rise faster than inflation, new entrants to the housing
           | market are priced out.
        
           | tmnvix wrote:
           | Cheap credit and a rising market are all you need.
           | 
           | Good for those with existing capital who can access the
           | credit and use growing equity to leverage new investments.
           | Terrible for anyone without existing capital actually earning
           | an income.
           | 
           | Both of these factors appear to be changing in many places
           | (very significantly here in NZ). Interesting times ahead.
        
         | ak_111 wrote:
         | If you are on 33K doing cyber then you must be in an area where
         | houses are cheaper than normal. If you are in London, then as
         | you acknowledged you are doing it real wrong and you should be
         | upping your job search game.
         | 
         | Your main point stands though - tech jobs pay much worse than
         | they do in the states. The only two competitive uk tech jobs I
         | seen are DeepMind and hedge fund (not even investnent banks are
         | competitive)
        
           | mtsr wrote:
           | Competitive salaries with the US isn't really a thing in
           | countries with socialized healthcare, welfare, etc. With
           | these institutions in place life looks qualitatively
           | different at any salary.
           | 
           | Problems start when these institutions get systematically
           | dismantled and salaries don't change to make up for them.
        
       | 23B1 wrote:
       | Had a handful of UK-based employees join our company in a merger;
       | I was shocked at how underpaid experienced professionals were
       | compared to our (U.S.) wages - and I was incensed when our
       | investors balked at a (nominal) raise for them.
       | 
       | I have a hard time separating agendas from reality these days,
       | but I'd love to get someone who is smart on the UK's to
       | understand how that country got there, especially considering my
       | (probably wrong) impression that things like healthcare, a major
       | expense here in the U.S., seem to be taken care of. I understand
       | wages are stagnant, but... _why_?
        
         | DanBC wrote:
         | Read "Britania Unchained" (available at various shadow
         | libraries). Then, when you've read it, realise that it was
         | written by Kwasi Kwarteng, Priti Patel, Dominic Raab, Chris
         | Skidmore and Liz Truss.
         | 
         | It's garbage front to back. We elect fucking idiots who are in
         | thrall to a tiny clique of rabidly anti tax arseholes who would
         | rather set their granny on fire than pay any tax at all. And
         | then we wonder why the country is on fire.
        
           | Silhouette wrote:
           | Obligatory notes for non-UK readers:
           | 
           | We _didn 't_ in fact elect the Truss administration in any
           | meaningful sense. Nor did we elect the current Sunak
           | administration in any meaningful sense. In fact historically
           | close to half of our Prime Ministers have landed the job
           | without first leading their party to victory in a general
           | election.
           | 
           | Our system of government places the vast majority of the real
           | power at national level. That power is normally wielded by a
           | Prime Minister who is only indirectly elected by commanding
           | majority support among the directly elected MPs in the House
           | of Commons. That means the PM and the government they in turn
           | appoint can change without any general election taking place.
           | 
           | In theory MPs are supposed to hold the government to account
           | on our behalf. Unfortunately those MPs are themselves elected
           | via a First Past The Post voting system that is infamously
           | unreasonable on almost any mathematical basis that should
           | matter. It frequently results in a large majority of MPs for
           | a single party that did not win anything like a majority in a
           | general election while simultaneously reducing smaller
           | parties that still won a significant minority of the popular
           | vote to parliamentary irrelevance.
           | 
           | As ever with these political problems the feedback loops
           | consistently prevent anything being significantly improved.
           | At any given time the one of our two largest parties that
           | almost always has a majority of MPs and runs the government
           | as a result would have to surrender its dominance in order to
           | effect meaningful change in our democratic structures and
           | turkeys rarely vote for Christmas. So we end up with a
           | situation not so different to the US, where there are
           | effectively only two parties that matter and the real
           | decisions are often made before the main election when the
           | parties select their preferred candidates internally. And
           | each party ends up being a "broad church" with a lot of
           | internal disagreement and inconsistency because breaking up
           | into smaller parties that more faithfully represent the true
           | opinions of their members would guarantee losses in every
           | election forever if the other guys didn't do the same thing.
        
             | gizajob wrote:
             | Yeah but at the same time, tons of d*ckheads in the south
             | keep voting for the same cohort of Tory Ratbags, so the
             | faces change but the policies and chaos remain.
             | 
             | Next labour will get in, not be able to fix anything
             | because they have no real policies, and they'll be back
             | again.
        
           | stuaxo wrote:
           | You're voted down but right - it's hilariously bad, written
           | as if by a teenager that has just discovered Ayn Rand.
           | 
           | Its a short read.
        
         | jeremiahbuckley wrote:
         | Every US company I've worked with that ended up with a London
         | dev branch as part of an acquisition seems well aware of the
         | wage disparity. They pull over the cream of the crop on L1
         | visas. It's like temp-to-perm except 1000 times worse because
         | it's Sr resources with families broken on the countrywide
         | collusion to underpay IT workers.
         | 
         | Part of it seems to be that the UK based companies don't expect
         | massive success. They have a thing, it makes some people at the
         | top a pretty good living, that's enough. They obviously could
         | create massively successful companies based on the talent
         | available, but no one wants to.
         | 
         | Or possibly more accurately: the people who want to realize
         | that proximity to other like-minded people is critical to
         | success, and they leave.
         | 
         | Every originally-from-the-UK tech worker I know in the US is
         | well aware of how lucky they were to get out.
        
       | ak_111 wrote:
       | Probably the UK central banker has the worst job in the world
       | right now.
       | 
       | I can't think of any other place where people's sense of net
       | worth is as tied up with their house price as it is in the UK,
       | while at the same time the increase in house price that people
       | have been conditioned to believe is the norm over the last
       | decades is wholly unsustainable given the stagnant wages. Take a
       | look at house price to wage ratio over the last two decades.
       | 
       | Something has to give eventually either a mighty correction in
       | the housing market that will shock many that were lead to believe
       | it is the only safe investment, or an uprising of those who have
       | no chance of getting on the ladder.
       | 
       | I would love to be proven wrong by a sudden influx of broad-based
       | well-paying jobs, but I just don't see how and where they will
       | come from.
        
         | ditn wrote:
         | > I can't think of any other place where people's sense of net
         | worth is as tied up with their house price as it is in the UK,
         | while at the same time the increase in house price that people
         | have been conditioned to believe is the norm over the last
         | decade is wholly unsustainable given the stagnant wages.
         | 
         | Canada.
        
           | gizajob wrote:
           | Also Australia. Property is king.
        
         | wk_end wrote:
         | > I can't think of any other place where people's sense of net
         | worth is as tied up with their house price as it is in the UK
         | [...]
         | 
         | Without diminishing the scale of the crisis in the UK: Canada
         | checking in here.
        
         | coderjames wrote:
         | > I can't think of any other place where people's sense of net
         | worth is as tied up with their house price as it is in the UK,
         | while at the same time the increase in house price that people
         | have been conditioned to believe is the norm over the last
         | decades is wholly unsustainable given the stagnant wages. Take
         | a look at house price to wage ratio over the last two decades.
         | 
         | United States. In inflation-adjusted dollars, house prices are
         | up 118% since 1965, but income is up only 18% [1];
         | alternatively, house-price-to-income ratio has increased from
         | 90x in 2012 to 135x in 2022 [2]. US Millennials have been
         | deemed "the unluckiest generation" when it comes to home
         | ownership in the US.
         | 
         | [1] https://www.realestatewitch.com/house-price-to-income-
         | ratio-...
         | 
         | [2] https://www.statista.com/statistics/591435/house-price-to-
         | in...
        
         | oceanplexian wrote:
         | I can't follow these kinds of comparisons, because housing
         | isn't a function of wages. The only thing that affects housing
         | prices is the supply of houses.
         | 
         | Does the UK have a large supply of houses? Does London have a
         | lot of spare land where they can build new houses? Is the
         | population of the UK increasing or decreasing? These are the
         | only question you need to ask to predict what will happen to
         | real estate values.
        
           | vinyl7 wrote:
           | A house can be priced as high as it wants...if no one can
           | afford the mortgage then I guess its just going to sit there
           | with a For Sale sign for decades?
        
           | ak_111 wrote:
           | I suggest you do a bit of research on how income relates to
           | house prices.
           | 
           | Here is the tldr: in country where most people buy houses on
           | mortgages, and mortgages are given based on a person's income
           | then wages will pay a direct and very important role on house
           | affordibity.
           | 
           | Also house supply is important but far from the only factor
           | effecting house prices. If gov builds 1000 new houses and
           | they instantly get bought by, say, the Saudi sovereign wealth
           | fund it will have virtually no impact on house prices.
        
           | dugite-code wrote:
           | > The only thing that affects housing prices is the supply of
           | houses.
           | 
           | Well yes and no. I would argue, treating housing as an
           | investment vehicle for both corporate and foreign interests
           | has had the biggest influence on low end housing prices
           | around the world. Corporate buy-ups, government backed loans
           | and "affordability" scemes have all actually pushed pricing
           | higher.
           | 
           | To be clear A large percentage of corporate and foreign
           | ownership isn't actually needed to have a large influence on
           | pricing simply because of where they are most likely to
           | invest. Just a couple of percent adds significant upwards
           | pressure on the low end of the market where affordability is
           | felt the most keenly. After all buy low sell high.
        
           | 88913527 wrote:
           | Financing seems to have a large impact on prices, as does
           | zoning, and supply. But the ability to borrow money and use
           | leverage is paramount.
        
           | scotty79 wrote:
           | > The only thing that affects housing prices is the supply of
           | houses.
           | 
           | And supply of capital in search of investment vessel.
           | 
           | Wage workers are just taken along for the ride.
           | 
           | Most properties in UK are bought and traded for investment
           | purposes. Home ownership of UK is one of the lowest in EU.
        
       | mytailorisrich wrote:
       | There is a breakdown of education and personal ambition. Once
       | someone has been brought up to be 'feral' with no education and
       | even a disdain for education, it tends to knock down families for
       | generations.
        
         | Sharlin wrote:
         | That's dangerously close to victim blaming...
         | 
         | The UK is an inherently classist society. No need for disdain
         | when it's been the case for literally a thousand years that
         | certain people are afforded excellent education, and others...
         | aren't. Any disdain of education among the working class is
         | more a consequence than a cause.
        
           | mytailorisrich wrote:
           | Look at the education outcomes statistics.
           | 
           | Immigrants from South and East Asia have children who fare
           | much better than those from the "white working class". It's
           | not because of society or money, it's because of culture and
           | values.
           | 
           | I am not blaming 'victims' but on the other hand if you don't
           | do anything to help yourself you can't expect success...
           | 
           | A personal anecdote: we tried to get one of our children into
           | a grammar school and so got private tuition for 11+ exam
           | preparation. 90% of those attending were of Indian origin,
           | very few 'Brits'. And we are also immigrants.
        
         | sg47 wrote:
         | But conservatives everywhere want exactly this. They are
         | keeping their audiences and electorate stupid with Fox News,
         | etc and making the rich richer.
        
           | christkv wrote:
           | The highest prices are in deeply liberal cities.
        
         | jimnotgym wrote:
         | My kids assume they will never own their own home. They had
         | their education trashed by covid. It is hard to be ambitious
         | when you see success as impossible.
        
           | mytailorisrich wrote:
           | Covid revealed good schools and bad schools. But it also made
           | plain parents who valued education and parents who didn't.
        
           | polar8 wrote:
           | Not with that attitude they won't!
        
             | eastbound wrote:
             | Shaming people for being losers is not a good way to enroll
             | them again onto a path to success. It actually causes
             | murders, if you count the incels that are shamed until they
             | commit a mass murder to have their suffering heard.
             | 
             | I'm an ambitious guy with lots of success and I work day
             | and night. But I'd never reckon bravery in someone who's
             | working day and night, they have it easy, since they
             | ecosystem is answering positively to more work from their
             | side. So I just had to bring in the work. Oppositely, when
             | the economy pulls of down by your bootstraps, it takes real
             | courage to be ambitious.
        
         | coastermug wrote:
         | Genuinely interested here, who are you referring to as 'feral'?
         | 
         | I see a lot of very well educated non-feral people in the UK
         | struggling to make good wages and a 'proper' standard of
         | living. I think that's what is meant by a broken social
         | contract ?
        
         | nathan_compton wrote:
         | If this happens it is a failure of _society_. It isn 't as if
         | people just up and decide one day "I guess I just want to be
         | poor and miserable."
        
           | mytailorisrich wrote:
           | It's both. Society plays a role but people do, too.
        
           | throwawaysleep wrote:
           | They do repeatedly, by taking no action to change it.
        
             | Sharlin wrote:
             | Must be nice, being that naive.
        
       | nine_zeros wrote:
       | I really don't understand. A drop in prices of housing alone will
       | fix all the problems (as long as banks are backed by the central
       | bank like they are in the US).
       | 
       | Write laws that:
       | 
       | - Prevent non-humans entities (trusts, shell-companies,
       | foundations etc. from buying houses for the next 10 years)
       | 
       | - Ban airbnb
       | 
       | - Increase property taxes on vacant properties.
        
         | api wrote:
         | None of those things would be nearly as effective as what seems
         | to be the unthinkable: building more housing.
        
           | Jochim wrote:
           | Developers only built half the homes that they were approved
           | to build over a 10 year period[0].
           | 
           | The destruction of the provision of social housing has been a
           | disaster.
           | 
           | [0] https://www.theguardian.com/society/2021/may/08/over-1m-h
           | ome...
        
             | candiodari wrote:
             | The issue (elsewhere than the UK) is that regulations have
             | also made building so expensive that it's actually not
             | worth it. People cannot pay for new houses, even on very
             | cheap land. I don't even understand how it's supposed to
             | work, by the current building standards in .be I'd say
             | about 80% of all houses (mostly older ones) would be torn
             | down if we follow the letter of the law. And a lot of those
             | building standards (e.g. electrical safety, piping safety)
             | apply to existing housing, not just to newly built ones.
             | 
             | Social housing used to be famous for the government simply
             | not following building codes (whether that meant maximum
             | land occupancy or isolation/material standards), and
             | disclaimed responsibility when it lead to accidents. But it
             | made a lot of people home owners.
        
           | SenAnder wrote:
           | Vancouver tripled its housing supply, but housing
           | affordability got _worse_ :
           | https://biv.com/article/2023/05/patrick-condon-behold-
           | vancou...
           | 
           | It turns out that if the demand is effectively infinite
           | thanks to immigration, you can't reduce prices by increasing
           | supply.
        
             | jlev1 wrote:
             | Tripled its housing supply _since 1960_ according to that
             | article. Meanwhile Vancouver's population went up by more
             | than 4x. So it doesn't seem surprising affordability would
             | get worse!
             | 
             | Edit: Patrick Condon (who wrote that biv.com article) seems
             | terrible. Here he is opposing _connecting UBC to
             | Vancouver's SkyTrain_ :
             | https://thetyee.ca/Opinion/2019/01/29/Last-Voice-Against-
             | Sky...
        
               | SenAnder wrote:
               | > Meanwhile Vancouver's population went up by more than
               | 4x.
               | 
               | My point exactly. Meanwhile Canada has had sub-
               | replacement fertility since 1973:
               | 
               | https://www.macrotrends.net/countries/CAN/canada/fertilit
               | y-r...
        
         | ok_dad wrote:
         | I'm in the USA but if I don't put my house into trust for my
         | kid then he has to go through probate and spend tens of
         | thousands to get it when I die. I agree corporations and
         | investors shouldn't own houses just for investment purposes,
         | but you also need some amount of rentals allowed because not
         | everyone wants to buy a home. I'm not sure where it is, but
         | there's a fine line separating the moral investment into houses
         | from immoral rent seeking.
        
           | nine_zeros wrote:
           | > I'm in the USA but if I don't put my house into trust for
           | my kid then he has to go through probate and spend tens of
           | thousands to get it when I die.
           | 
           | And that's by design. Every human coming into the planet
           | should start from a reasonably same starting point. By not
           | taxing inheritance, the super wealthy's children start much
           | further than the children born to non-wealthy families.
           | 
           | The tax on inheritance is the best way to ensure that there
           | is "some" inheritance but not enough that the children start
           | at a starting point that is insanely ahead of others.
        
           | AlbertCory wrote:
           | "rent seeking" as an economic term has nothing to do with
           | house or apartment rentals.
        
         | lottin wrote:
         | - Close the borders
         | 
         | Good living conditions are like a magnet for economic migrants,
         | and the wholesale arrival of migrants will start a race to the
         | bottom which will destroy any quality of life.
        
         | rcarr wrote:
         | What you're missing, is that all the property owners take out
         | massive amounts of credit, believing that the rise in property
         | values will cover it and they can just remortgage in 5 years.
         | So they buy pointless shit like Range Rovers even though they
         | live in the city and take luxury holidays they wouldn't be able
         | to afford otherwise. The smarter ones use the extra credit to
         | buy more houses. If the property prices tank all these people
         | go bankrupt. No government will let it happen because they'll
         | become unelectable for decades. It's truly absolute dogshit.
        
         | FredPret wrote:
         | Or... you could try the supply and demand method.
         | 
         | Increase supply (build more), keep demand steady (sane interest
         | rates, sane immigration rates, speaking as an immigrant), and
         | housing costs simply must fall. Yes, even if a single
         | corporation buys every last house in the UK.
         | 
         | Fight supply and demand at your peril.
        
           | scotty79 wrote:
           | > Increase supply
           | 
           | Supply can be vastly increased by punishing large owners
           | severely for letting their properties stay empty.
        
           | jjcon wrote:
           | Given UK age demographics that is going to happen over the
           | next few decades anyway, putting all efforts into increasing
           | supply could lead to the opposite problem in the not too far
           | future.
        
             | betaby wrote:
             | Unlikely, all UN demographics predictions were/are wrong.
             | Population is mostly grows everywhere unless that region a
             | war zone. Being that growth driven by births, immigration,
             | refugies or illegal move is irrelevant in context of
             | supply/demand.
        
               | jfim wrote:
               | > Population is mostly grows everywhere unless that
               | region a war zone.
               | 
               | Define everywhere. Japan and Greece have seen population
               | declines in the last few years, for example.
        
           | seydor wrote:
           | the war has made construction hugely more expensive in many
           | countries
           | 
           | The globalization of the real estate market has always been a
           | setup for a scam and everybody knows it, yet keeps doing it,
           | and the whole west is now stuck in this catch-22.
        
         | archsurface wrote:
         | The UK housing "market" is the sacred elephant in the room.
        
           | betaby wrote:
           | Hello from Canada!
        
         | JonChesterfield wrote:
         | It seems likely the houses are overvalued, on the basis that
         | ratio of house price to income has increased dramatically, and
         | also that a significant fraction of the pension provision in
         | the country is investment in property. I'm not sure what the
         | housing market collapsing would mean for the UK but am doubtful
         | it would fix more problems than it spawns.
         | 
         | For what it's worth, the tax system is aggressively punitive
         | towards companies that want to buy real estate. Landlords with
         | mortgages can't offset the interest against profit any more so
         | a bunch of those are no longer viable concerns and sold up.
         | 
         | Some conquence to vacant property might be good, beyond the
         | already punitive stamp duty when you go beyond the first one. I
         | think you get hit for capital gains when selling non-primary
         | residence as well.
        
       | raydiatian wrote:
       | Didn't think I'd see "social contract collapse" in 2023 but here
       | we are. Anyway, cute the flames, let's eat the fucking rich
       | already
        
       | haunter wrote:
       | And that's western Europe. Now imagine what's happening in the
       | poorer EU countries (Bulgaria, Hungary, Romania etc)
        
         | AlbertCory wrote:
         | > Now imagine what's happening
         | 
         | Now there's a western-centric statement, if ever I saw one. Why
         | do you assume "the poorer EU countries" are like the west, only
         | worse? Other replies give more nuance.
        
         | retrac wrote:
         | The "new" European economies are poorer but they're also more
         | egalitarian. Lower average income, but more people near the
         | average. That creates the odd situation where a young person
         | born into poverty in, for example, Poland, or Estonia, may have
         | better prospects than someone born today into poverty in the
         | UK, or even France. More of a real chance at social
         | advancement, ending up middle class and socially-economically
         | secure. Quite a reversal from just a few decades ago.
        
           | aylmao wrote:
           | I was recently in the UK and a friend there expressed a
           | similar pessimistic sentiment-- "things are really bad here,
           | the whole world is going down the drain".
           | 
           | Back where I'm from, things aren't looking as bleak as they
           | are in the UK. I found that comment amusing really. The
           | assumption that since Britain has historically been wealthy
           | and a one of the better places to live, if things are not
           | looking great there, they must be so everywhere or something.
        
         | Darmody wrote:
         | Romania has the highest home ownership in Europe. Hungary is
         | third. The UK is near the bottom.
         | 
         | In eastern Europe it's common to see young people building
         | their own houses in rural towns near the big cities. They earn
         | less money, yes, but they don't waste 50% of it on rent.
         | 
         | It's a different way of survival.
        
           | allendoerfer wrote:
           | Switzerland has the lowest. A famously poor country of people
           | wasting their money on rent, somehow topping all rankings
           | concerning standard of living. ;-)
        
         | maest wrote:
         | Poland's doing ok. So are Romania and Hungary. There is
         | inflation, but there is also a lot of economic growth.
        
           | paganel wrote:
           | As a Romanian I can confirm that, all things considered, we
           | are not doing that bad. Inflation hurts a lot of people, of
           | course, but we've had way, way worse than this back in the
           | '90s, so those of us who are older than 40 or so just sigh,
           | maybe swear at the politicians and then hope that things
           | won't get worse.
           | 
           | What's really helping, for now at least, is that housing is
           | still relatively affordable (with the exception of Cluj, a
           | very IT-focused city). If that housing affordability were to
           | disappear then, yeah, the optics would definitely change.
        
         | seydor wrote:
         | they are cheaper to begin with. 10% inflation on expensive
         | countries has more impact, considering that wages remain static
         | everywhere
        
       | erulabs wrote:
       | I mean, listen to modern UK music for about 10 minutes and you'll
       | hear this. I like "nothing great about Britain". "Top Boy" isn't
       | exactly about people thriving.
        
       | gibsonf1 wrote:
       | The winning formula that seems to work without fail is more
       | individual freedom/capitalism. (Not corporatism or crony
       | capitalism or statism of course)
        
         | nathan_compton wrote:
         | Capitalism inevitably devolves into crony
         | capitalism/corporatism. Indeed, what is happening in the UK is
         | literally after decades of of increasing liberalization! So
         | "works without fail" seems to be an exaggeration at least.
        
         | MisterBastahrd wrote:
         | There's no such thing as "crony" capitalism. It's just
         | capitalism without hiding the nasty bits.
        
         | gibsonf1 wrote:
         | The freest countries are the most prosperous - this is the
         | evidence: https://worldpopulationreview.com/country-
         | rankings/freest-co...
         | 
         | Note that Hong Kong used to be at the top of this list prior to
         | 1997 when China started taking away their freedom.
        
           | nathan_compton wrote:
           | Note that this index is _freest_ but not the most capitalist,
           | which you seem to be conflating.
        
           | gizajob wrote:
           | Singapore is pretty rich while not being particularly high on
           | that list...
        
       | slt2021 wrote:
       | [flagged]
        
         | _visgean wrote:
         | not exactly everyone who is suffering from poverty voted for
         | brexit.
        
           | d--b wrote:
           | Apparently, poor people mostly drove the brexit vote
           | https://www.theguardian.com/politics/2016/aug/31/people-
           | who-...
           | 
           | Doesn't mean they deserve what is happening to them though...
        
         | [deleted]
        
       | BearhatBeer wrote:
       | I always chuckle a bit when I hear the term social contract. It's
       | not legally enforcable, isn't codified, people can't choose to
       | partake in it, and has always been intentionally vague. Almost
       | like a trick to convince the masses that they're owed something
       | by the "leaders."
        
       | fancyfredbot wrote:
       | "poverty cannot be tackled by raising incomes alone, and
       | highlights housing and childcare costs, the additional costs of
       | disability, and energy and travel costs as areas to be addressed"
       | 
       | I'm not sure how to interpret this since clearly raising income
       | does allow people to pay these costs. If the report is saying the
       | government needs to intervene in the housing, energy and
       | childcare markets, then that would be a breath of fresh air.
        
         | ngcazz wrote:
         | I think that's safe to assume, since income is contingent on
         | employment and occupation at any given point - keep those
         | services affordable to reduce the risk of citizens losing
         | access to them
        
         | ClumsyPilot wrote:
         | our costs for these things are insane, $2000 monthly.v
         | netherlands is richer than UK but their childcare costs half as
         | much. In germany it's free. Same story for housing, I have
         | friends around europe and people with twice as much floor space
         | pay much less rent
        
           | karaterobot wrote:
           | > netherlands is richer than UK but their childcare costs
           | half as much. In germany it's free.
           | 
           | Is this private childcare setting its own rates in a market,
           | or some public childcare service paid for with increased
           | taxes, or some hybrid (i.e. private with supplemental
           | government funding, or private with mandated limits on
           | pricing)?
        
           | brnt wrote:
           | 1500-2000 EUR per kid is usual in Amsterdam as well. There's
           | a wage dependent subsidy though. Kita's aren't free, though
           | much cheaper.
        
         | drak0n1c wrote:
         | What that statement means is that measures to facilitate supply
         | side volume are also necessary, giving the demand side money is
         | not the only option. If it is too cost-prohibitive and risky
         | for incumbent firms and potential new competitors to supply an
         | increasing volume of services or goods then buyer subsidies
         | will only inflate prices further.
        
       | asdadsdad wrote:
       | can the media please give the UK a break please? it's exhausting.
       | go cover the us, france, whatever.
        
         | klyrs wrote:
         | The media is covering all of those places and more.
        
           | asdadsdad wrote:
           | is the uk really burning like all the bad news are reporting?
        
         | hankchinaski wrote:
         | The guardian is a British newspaper
        
       | throwawaysleep wrote:
       | Poor people voted for Brexit, as it would mean more jobs.
       | 
       | Well, time to start working 3 of them. Reduces your housing costs
       | as well, as you should always be at work. Hard to have much
       | sympathy for people voting for the leopards to eat faces getting
       | their faces eaten.
        
         | notacoward wrote:
         | What about the people who voted _against_ Brexit but still have
         | to suffer the consequences? There are millions, and millions
         | more who couldn 't even vote e.g. because they were too young
         | at the time. "You voted for this so suffer" seems like a
         | remarkably cruel response.
        
           | gambiting wrote:
           | And don't forget people who live here who literally couldn't
           | vote at the time and also have to suffer the consequences.
        
         | eastbound wrote:
         | Those people voted to be free.
         | 
         | Free from a superpower that trashes the countries who try to
         | leave them. Free from a superpower where you only get one vote
         | every 5 years and the rest is managed by administrations
         | outside of democratic rule. When I see my country not allowed
         | to negotiate with UK, because we have to let the EU diplomats
         | negotiate, it's horrible.
         | 
         | It's horrible what we're doing to the UK people. It's bullying.
         | It's revenge for leaving us. Let's not dismiss how important is
         | the role of the EU in the fall of the UK.
        
           | javcasas wrote:
           | The EU negotiates as a block because that's how blocs are
           | strong: by not having a part that can be "negotiated"
           | (bullied) into concessing.
           | 
           | UK decided to be outside the bloc, and now it has to
           | negotiate with the bloc, like everyone else.
        
           | gizajob wrote:
           | Not sure what the need is for downvoting this opinion.
        
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