The Stagnation of Living Standards and Technical Decline

According to the latest government figures, real pay levels in Britain have not risen in 12 years, and are now lower than they were in 2007. Money wages have risen, but the rise in money wages has been totally absorbed in rising prices (Fig. 1↓). This is the worst and most prolonged fall in peacetime living standards since records began. At one level this is a terrible indictment of the Conservative and Liberal governments since 2010, but the decline in earnings started in 2007 under the Labour government so the causes go deeper than just which government is in power. […]

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