Spare a Thought for Millionaires

A year ago – where were you? What about 5 years ago? How much money did it cost you at the petrol station to fill up your tank? What about college? How much did it cost you? How much do you think you’d spend on home today? The price of these things have all risen sharply in just the last few years.

fiat money

But, it’s more than just price inflation. It’s an attitude about money and the easy availability of credit that’s the problem. The BOE is in no hurry to raise interest rates in 2014, even though economic recovery seems to be on the horizon. It’s not in a central bank’s interest to squeeze off the money supply. Why? Because that means raising rates.

And who is hurt by those rate hikes? Investors in government debt, businesses, and consumers. The problem is all of this money being pumped into the economy slowly erodes the value of the pound over time. That’s why more and more people are millionaires, and yet they don’t feel like a millionaire should.

Surprised? You shouldn’t be. From Minis to petrol to university costs and even housing – It’s getting harder and harder to feel even middle class.

Spare a Thought for the Millionaires Infographic
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Cover photo credit: Dierk Schaefer