We're always being told what a wonderful economy we have had under Gordon Brown. Anyone with an ounce of honesty knows however that the figures and books look OK simply because of some shifting accounting practices that, were Brown the CFO of a company would probably get him put in jail.
However, we're also told that we've all never had it so good, but as most people also know personal wealth, or more correctly spending power, has been based on nothing more than increasing unsecured debt amongst the general populace. A quick look at the official figures put out by the Treasury from the Office for National Statistics show just how much Gordon Brown's claim of fostering a strong economy and is based on debt.
In 1997, the average annual income per person, where a person is defined as those over 18, was £12,307. The total debt per person at the same time was £12,894 which equates to a total debt as percentage of income of 104.8%. Last year, the average annual income per person £17,344. The total debt per person was £28,509 equaling a total debt as percentage of income of 164.4%.
The next time you hear the words "low interest rates" just remember this, the debt is rising, and each time the interest rate moves 0.25% up the debt rises faster as well. Isn't it all so prudent?