Household Income has stood still for the last 4 years: The big squeeze.

The graph above shows the 'real' increase in household income since 2007. As you can see the level of disposable income reached in 2007 (Q3) is basically where the nation's household disposable incomes are now. When this autumn's hikes in fuel, transport & housing costs are factored in the actual picture will be even bleaker than that. The pain we are currently going through resembles that of 1979-83, the first term of the Thatcher government when disposable incomes grew just 1.1% in the first three years of her administration.

Eoin is complaining that 'real' (ie post inflation) disposable income has been positive in each quarter since 2007. Now, you can argue about which inflation measure has been used (he doesn't say) or whether fuel, transport and housing costs tend to increase at a rate that's faster than the main inflation measures (they do have a tendency to). But to say that household income has "stood still" is demonstrably false. That's a mathematical impossibility, given that every quarter shows at least some growth.

Is there no beginning to this man's economic ability?

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Filed under: Economics, Other blogs with tags disposable income, eoin clarke, eoinomics, idiots, inflation