The effects of the cost of living crisis are beginning to bite. As I predicted in an earlier post which explored how rising electricity costs are affecting me, there are now serious concerns we are facing a recession.
There are two problems with Rishi Sunak's cost of living crisis response.
Rishi Sunak's Response To The Cost of Living Crisis
Sunak hasn't taken any action. That is the big fat problem. He says he might do something in the future. For now, it's everyone else's problem.
The narrative in many people's minds is that Rishi is so rich, he just doesn't understand how significant the cost of living crisis is.
It's been widely reported in the press that the chancellor's wife, Akshata Murthy has a 0.91% stake in Infosys, a company founded by her father. Her share of the Indian tech consultancy giant is estimated at more than £400m.
Rishi Sunak's father-in-law, Narayan Murthy, is worth $3.2billion and is referred to as the "Steve Jobs of India".
Rishi Sunak is the man who is saying it would not be responsible to take action now on the cost of living crisis.
Sunak also doesn't see the damage no action will cause the UK and world economy. It's incompetence or callous indifference.
This is also all in the context that his former employer:
"Goldman Sachs said rising oil prices and other impacts from Russia's invasion of Ukraine will reduce U.S. Gross Domestic Product (GDP) this year, and added the probability of a recession in 2023 is now at 20% to 30%."
People are cutting back on extras like Netflix and other entertainment subscription services. Holidays are also being put on the back burner. It causes resentment as the have nots feel the burden more than anyone else.
Market research firm Kantar said 1.51 million cancellations happened in the first quarter of 2022. Media reports suggested Netflix share price was down by 20%.
Women Are Disadvantaged More
Electricity costs are up but increasing benefits and tax cuts excludes and ignores a large demographic - women.
If you're not working eg. a full time carer / mother, not on benefits and not in paid employment, your family is worse off.
To date, women are ignored by the government. Safety, long covid and child care are part of a long list of issues that women face which are way down on the pecking order of government priorities. It does not feel like this is a government that cares about women.
Instead, there are reports of rapists and sexual harassment by MPs. They are defended and supported by a largely male population of men in power.
Self-Employed and New Businesses are Forgotten
If you're not yet making much money, a new business or self-employed person does not qualify for benefits. Nor do tax cuts help them.
These are the people that will build a strong economy and future for this country. Instead, their chances of success are diminished. The government and its policies are another obstacle and threat to their business.
Even a tax cut to businesses doesn't really help, as it favours the companies making large profits. Plus the flow on effects if businesses do pass this to customers takes time.
Ungreat Britain
When you're constantly worrying about bills. If your electricity bill is double what it was. Your grocery bills are feeling overwhelming. There is the constant need to cut costs, save where you can and never indulge, anxiety is high and happiness is low. These all affect your mental and physical health.
This isn't just about people facing the heat or eat option. It is affecting a disproportionate number of people around the country. It weighs on people's minds, even those in good jobs and who are reasonably well paid.
Here are some posts on Nextdoor - a local community forum.
"The price hikes and sky rocketing bills are hard for everyone, but I'm really aware that some people are being forced to choose between necessities like food and heating. I'm especially concerned about older people or those with disabilities, who might be isolated, unaware of who/ how to ask for help and unable to work/ earn more money. Is anyone aware of any local schemes to make sure our especially vulnerable members of the community are supported? I'd like to help, perhaps dropping some food round to a local elderly neighbour or contributing financially to a local campaign. It's heartbreaking and we have to look out for each other x"
People are even calculating the cost of a shower.
"My morning shower just cost 60p. Was curious and now wishing I hadn't checked. There are 6 people in the house which equates to £3.60 a day or £36 every 10 days. General hygiene is now £144 / month for a household of six. If we all shower daily."
Poorer people equals higher crime. The new HM chief inspector of constabulary, Andy Cooke said:
“Whenever you see an increase in the cost of living or whenever you see more people dropping into poverty, I think you’ll invariably see a rise in crime."
None of this is great. It's all bleak.
The Problem
The cost of living crisis is the biggest problem facing Britain and the world today. It is a failure of governments, businesses and the media that they watch us slide into the abyss. The situation is becoming beyond urgent and to the point where any action is too late. Dithering and delay cost lives when coronovirus first hit. What will be the result of Rishi Sunak's can kicking today? It could be worse that the pandemic, the last financial crisis or any war. We're facing a recession or worse ... could we end up in a Great Depression? Is this all because a windfall tax on energy companies is considered "ideologically unconservative"?
No comments:
Post a Comment