• No, its not the case that people don't have much disposable income because of luxuries . Well, the Daily mail says it is but it's generally not founded in fact.

    The average proportion of income spent on rent alone is between 30% and 40% depending on where you live. Not hard to see how travel, fuel, food etc can take it much higher.

    I also don't think this is about "essentials". People will need to be able to service their consumer debt that they accrued before this crisis. There are literally millions (if not tens of millions) of people who have less than £100 in savings precisely because their cost of living is so close to their income.

  • Thanks for the reply.
    But, given the current situation, expenditure on travel and fuel will be significantly reduced in most scenarios, wont it?

    Isn't that part of the problem though? Consumer debt? - people readily take on debt and live outside of their means..

  • Isn't that part of the problem though? Consumer debt? - people readily take on debt and live outside of their means..

    Yes, that's a problem. But the solution isn't a massive wave of insolvency during a pandemic unless you want more suffering and greater political turmoil.

About

Avatar for MattG87 @MattG87 started