Real wages for the working and some of the middle classes have been squeezed for the last 10 to 15 years as the top 2% of the population became richer and richer.
We were then sold the dream that houses would continue to rise and rise in value forever and boom and bust was over so we could keep drawing down on the increasing through more and more equity releases. However, the credit crunch and the Great Recession ended all of that.
We, well the 98% who have not become steadily richer over the last 10 to 15 years, are going to go through a big period of correction and reduction in our living standards and the public services that we have become used to because the borrowing that was funding all of it was not sustainable.
Deleveraging will continue into the medium term, austerity is going to be a buzzword and it isn’t going to be much fun.