The rapidly rising costs of domestic energy has been a staple of 'cost of living crisis' headlines over the last few months.
Every single day we see in the news yet more vox-pops of 'ordinary working people' struggling to cope with their rising gas and electricity bills and facing the 'eat or heat dilemma' and there have also been several longer documentaries investigating people's personal struggles in more depth.
And it is true that gas and electricity prices have soared over the last months, and that they are set to go up further, so increasing energy prices are certainly newsworthy, and the vast majority of people can relate to such stories because they have similar ones of their own...
However, rising energy prices also make for a very easy (I would say lazy) 'cost of living crisis' story - the costs have gone up rapidly in a short period of time (so this is unusual), and there is an 'easily identifiable' cause with a 'bad guy' - Russia cutting of energy supplies as part of the economic war over Ukraine.
And maybe the news is focussing on this particular cost of living issue because there are at least a couple of viable options to sort it out... Government hand-outs combined with capping energy prices or just giving up Ukraine - both manageable options.
But there is more to the rising cost of living than just increasing domestic energy prices - most significantly the rising costs of rent (and other things such as food but I want to focus on rent costs here).
Rent has increased by 10% over the last year, and in the South East of England than means an increase from £1100 a month to £1200 a month...
That equates to £1200 a year which in gross money terms matches the average increase in domestic gas and elecriticty prices.
And yet there is hardly any mainstream news coverage of the increasing prices of rents even though it is this which is just as responsible for pushing people into debt as the rising energy prices.
I get why the news focuses on raising energy bills more - this affects EVERYONE, only around 25% of the country pay rent, most are owner occupiers or living with their parents still, but I just think there needs to be more focus on the massive negative impacts of both of these factors on the relatively poor at the bottom end of society.
These people after all are going to be the ones that really suffer, most of the rest of us can handle a doubling of energy prices - it just means less pints and doughnuts rather than literally starving.
But of course the mainstream news isn't going to focus on the role of rent and rentierism in pushing the poorest of the poor into destitution - if it did that we'd have to start thinking about national and global inequalities and maybe then we'd have to start rethinking Capitalism itself....
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I wouldn't lay it solely at the feet of capitalism. Some of the reason why housing is expensive is government regulation. Here in Texas, it was possible to buy undeveloped plots of land to build a house outside of city limits. These houses would never have been allowed within the city limits. But, it's what people could afford. As cities, looking to expand their tax base, expanded into surrounding areas, they would have to invest in providing utilities to these neighborhoods. That is water and sewage. They got fed up with having to incur the expense for growing their tax base, so they went to the legislature and had a law passed that required all new developments to include water and sewage. This dramatically increased the price of new plots to where the people who would have owned a home could no longer afford it.
In helping people out of "squalid conditions", the government made it more difficult to rise out of poverty.
Capitalism excels in its indifference to any individual's plight. However, the good intentions of governments often pave the road to hell for the very people they aim to help.
I grew up in homes with dirt floors and pit toilets. They were home despite the cold winters and hot summers. I don't feel I suffered any indignity or inhumane conditions. My parents could afford to buy undeveloped land at flat monthly payments for 20 years compared to having to rent "acceptable housing" that would raise rent every year.
Many people would be content to live in sub-standard housing given that government often sets the standards too high to be economical or practical. I think this is a large contributor to homelessness. There is no possibility of living anywhere between homeless and minimal standards. You either have £1100 per month, or you live on the street. Sure, we're raising the living standard. But, we're doing it on the backs of the poor.
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Fair points for sure!
That's something I've wanted to talk about since long before these latest sets of crisis but I've noticed that in Florida if you mention rent control they call you a socialist. They are really fighting against common sense on this one.
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It's bonkers - housing is so basic the idea that profit comes before needs is just plain fucking wrong.
This economic and energy crisis is worldwide, it seems that the covid19 effect will drag us down for several years.
Although I'm inclined to think a crisis like this is inevitable in a Capitalist system, Covid only sped things up.
Things are not looking good and maybe you are better off going to Vietnam or somewhere earlier than expected. I think finding a cheap place to live for the next 6-12 months is a good move.
That would be the smart move, but I've got to move back to the South East of the UK and just suck up the high prices for a couple of years - but short term it ain't too bad.
Sounds like you're doing pretty well to me!
Home owners will always win politically and for them, rising rents are a good thing.
The rich get richer...
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Yes true - I'm just glad I'm already a home owner!
Literally all I talk about is reaching a sustainable equilibrium point. Not sure where you got the idea that I'm promising you of all poeple, jets...
Also, I thought we just agreed to disagree, mate? Why bring me back into this now? Go and build your project, I genuinely hope that it works out for humanity! <3
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Mute Mykos, I think he's both insane and a bit of a troll.
Rent increases seem to have been affected by the pandemic and the flow of people out of, especially, London. Space and gardens seem to be important, but also the realisation that remote working is viable, if not always desirable. That's creating specific problems for London as the "middle" (and their prospective families) moves out taking their London salaries with them. Elsewhere, it's increasing property prices and placing pressure on the rental market.
It is interesting how the focus is on energy costs: this was a transnational problem before Russia invaded Ukraine and although that may have exacerbated the problem, prices were already rising and for a range of inter-related reasons.
The good news is the revitalisation of the trades unions, the amount of industrial action we are seeing and the huge support of the general public for striking workers. We have combined action and co-ordination in Leicester which is fabulous.
I hadn't thought of the migration thing and rents, it's a fair point.
I must say I'm enjoying the Trades Unions coming back to the fore for sure!
Some mention of rising rents here. Some of the media may care more about property owners than renters. I saw a link to some Telegraph article with a guy asking how he can get by on a big pension and rental income. We need affordable housing for all.
Everyone's affected, many pensioners returning to work!
Nobody?
https://www.bbc.co.uk/news/business-60053919
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Why is the rent rising? Greed?
Actually good question, probably more like a combination of greed and power.
Annoying.
They cap it here in Denmark. It can only raise max 4%, no matter the inflation
I didn't understand anything of what you said.
Its a different country than the UK, so they taxes also work differently ^°
Not sure I will csll defrueding the govt. Amazing xD
I'm honestly a little bit confused by the tendencies the market is taking. Trends are sketchy and every possible actions feels like a big risk to take.
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Yeah true, I'm just in a holding position right now!
Thanks for your sharing, your idea is brilian
In a world where the rich only cares for themselves what then can the vulnerables do. It is so pathetic that we are leaving in a crazy world.