A sensitive subject than comparing the standard of living of households over thirty or fifty years, but which is of particular interest to economists.
Households Have Less Room For Maneuver
In a social context that mostly denounces the economic situation of many households, a case study by NIESR shows that the subject seems more complex than it seems. The first economic impact suffered by the UK concerns housing because the price per square meter has only increased everywhere in the territory for several decades (with a few localized exceptions).
More generally, constrained spending reduces the room for maneuver in the family budget. For example, internet subscriptions or the replacement of mobile phones further inflate these hidden costs. In addition, savings capacity diminishes to the detriment of too high credit repayment.
Another position that is progressing for many English people concerns transport because progressively moving to the workplace stretches according to the cost of housing. All of these charges contribute to the feeling of impoverishment of the population. However, other elements like high risk merchant services must be taken into account. In fact, habits evolve with technological innovations which influence purchasing arbitrations.
Households Consume More And Change Their Habits
While in the second half of the twentieth century, the majority of households made ends meet on a single income. Simply explaining this condition as a cause of impoverishment seems like a mistake. In fact, in the sixties, it would be easy to forget that the majority of households consisted of a person responsible for its maintenance.
For example, the appearance of the washing machine completely changed the context for families because until the 1970s, most of the laundry was washed in the laundry (not automatic). In the area of development, many high risk merchant services provider are improving.
While today, couples in a capacity to get into debt rush to buy their homes (first big acquisition), their grandparents suffered much higher interest rates which forced them to save heavily, sometimes throughout a lifetime to acquire a pavilion. At that time, the purchase of a house was the culmination whereas now, it is not the same.
In addition, buying a car was not always the obvious option because travel began to explode in the 1980s. In the field of holidays, NIESR note another development, since they are more often spent away from home and tend to move away from the family environment over a long period.