How is the 'Cost of Living Crisis' affecting you?

by nicolaou 31 Replies latest social current

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  nicolaou

  Here in the UK we've recently had the price cap on household energy bills raised by around £800 and there'll be another similar raise this autumn.

  Food prices are up, petrol is around £1.82 per litre - that's $10.37 per gallon for our American friends - and inflation is currently running at 9%

  Business are being hit as ordinary folk prioritise their spending. Young folks are effectively priced out of the housing market and wage rises are not keeping pace.

  Mrs Nic' and I are fortunate in that we're both in secure employment and with the kids moved out and mortgage paid off our outgoings are thankfully low. I hope that doesn't sound smug, I know lots of folks are really struggling.

  We don't splash out on fancy dining but will have the occasional Indian takeaway. We have a caravan which I'll tow anywhere in the UK and I built a garden hideaway with wi-fi, TV, music and a woodburning stove where we burn free wood and briquettes I make from shredded paper.

  Basically, we shut down the expensive house and snuggle up in front of the fire like hobo's 😁

  So how's it going for you guys?
• 

  MeanMrMustard

  What are the details of the price cap?

  I've heard some of the Democrats propose price controls - which is the worst of all responses to this (imagine that). But I was wondering if you basically had price controls there?
• 

  nicolaou

  The price cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity you use, and sets a maximum daily standing charge (what you pay to have your home connected to the grid).

  That means there's no upper limit to what you actually pay – if you use more energy, you'll pay more, use less and you'll pay less.

  Why would you say price control is the worst response?
• 

  Simon

  Yeah, prices are up everywhere here by significant amounts.

  Housing is now utterly unaffordable to many, not just young people starting out.

  Food is expensive, with either prices going up, sizes getting smaller, or both.

  Fuel costs are high most places. Alberta removed the provincial tax so it's relatively low here compared to other parts of the country but if you drive for work it's still going to bite. Fuel costs feed into everything else and so everything you need will cost more.

  The rise in input costs haven't yet fed through the system so there will be more rises to come and of course our glorious overlords have managed to cripple food production where 40% (?) of the worlds wheat is produced ... which impacts more food types than you first imagine.

  There's a good chance that some people will actually starve to death at some point. Many others will be crippled financially and long-term will have reduced lifespans as a result.

  Is this it? The great reset? Building back better?

  It looks like utterly fucktarded shit to me typical of incompetent and clueless grifters. This is what people think is worth it to avoid "mean tweets"?

  The elites are gobbling up ever more share of the worlds wealth from all this and politicians have their faces in the trough to enable it all.

  When everything is all over there should be some people strung up from lamp-posts for what they have done.
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  Simon

  Why would you say price control is the worst response?

  Probably because of many democratic-controlled cities response to property prices where they impose rent price control, effectively ensuring that private landlords squeeze the pips out of renters and the housing stock declines in quality as no one can afford to invest in upgrades.

  Politicians love to give other people's money away in exchange for votes, and these cities become cess-pits as a result.
  
  
• 

  NonCoinCollector

  Thing are getting so crazy for me, that I just bought a 125cc motorcycle for commuting. I had to take a loan to finish paying for the roof my house needs that I spent the last 2 years saving for. If I keep waiting the price will go up faster than I can save. The frustration is real.
• 

  Simon

  Personally, we're OK - everyone in the house is working, mostly remotely from home, so costs are down. We renewed our mortgage a couple of years ago at 1.7% and should be able to pay it off before it renews again. We also switched to fixed-price energy plans and now it's summer we won't use much gas for heating. That's the insidious part of all this - a lot of the costs now are carbon taxes and then sales-taxes on top of that (so your bill still goes up even if you use less and the prices don't rise). This is to supposedly dissuade use, but that isn't an option when it's -30 degrees ... and some people will be making the choice of whether they keep warm or they eat.

  We try to support local restaurants and stores as much as we can. But the fabric of society is definitely being impacted by this. You can feel it.
• 

  stan livedeath

  in the UK we've had the good times..very low interest rates---dirt cheap mortgages, energy costs 4 years a go a quarter of what they are going to be in a few months time. Far too much disposable income for utter trivia--restaurants..holidays..often several a year.

  Now comes the hard times. Far worse than most can imagine. Before you know it property prices are going to crash.

  Ive seen it all before.
• 

  TonusOH

  We're doing well, two full-time and one part-time income are plenty, though we are feeling the pinch in high costs for gasoline, food, and HVAC (the winter heating bills were particularly rough).

  Regarding price caps, the downside to them is that they do not solve the issue of supply. Keeping prices down guarantees that the supply will be gone earlier, and shortages will begin sooner and be felt longer. One way to deal with that is rationing, which is another kind of shortage. Runaway prices are not good either, but in a time of scarcity and inflation there aren't any good solutions at the local level. The administration seems intent on making things worse in the hopes that it encourages development of alternative energy, but it feels a lot like the 70s, when Carter was telling us that the good times were over and Reagan came along promising that they were just beginning.

  In other words, if you're trying to avoid Trump 2.0, this is the worst possible way to do it.
  
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  NonCoinCollector

  In other words, if you're trying to avoid Trump 2.0, this is the worst possible way to do it.

  Trump 2.0 doesn't scare me, but I certainly have had enough of Jimmy Carter 2.0 (Biden).