It’s a gravity well of incentives towards absolute property gluttony and creating an overheated housing market and massive social inequality.
It’s a gravity well of incentives towards absolute property gluttony and creating an overheated housing market and massive social inequality.
I remember about 10 years ago, "the idea" was that retirees would, as their health starts to decline, do equity-release in their homes to pay for their care needs (on the basis that the NHS would start to means-test care based on the value of all assets, including housing, so that if an OAP has £1m locked-up in their house and they probably have less than 5-6 years to live it's only fair that they liquidate some of that wealth instead of expecting the NHS to pay for everything - while those who don't own their own houses, would still benefit from free NHS care).
I left the UK just-over 10 years ago (but I still visit my parents a few times a year and do the WFH-thing-but-abroad) so I'm not as clued-in on subtler points of public policy, but I'm curious if that's still the case? ...or if the Tories reversed that decision in the 8 years they've held power? (after-all, it would be anathema to Daily Mail readers, who give me the impression that they fully expect to enjoy their house-prices even after they're dead).
That may not be fair, but when most voters are property owners you're not going to get a different outcome.
This is an interesting topic because it highlights how the political and economic culture is broken and incapable of effective national strategy. I don't think housing, health, industrial policy, education, or anything else can be fixed without a complete overhaul of the UK's political parties, media, and systems.
It's not as simple as "give up some of their personal wealth to pay more for an NHS they've already paid into". If you have 20K in your bank account and no property, you have to pay for your care. If you own 2 flats worth 1M each and have 10K in your bank account, you pay nothing. The so-called "dementia tax" would have make this situation fairer. Besides, they wouldn't have to release equity while alive, but the cost of care would be paid by the heirs upon selling or inheriting their parent's property.
Imagine a scenario where you have 20K in your bank account. You child inherits only 10K, because you had to pay for your care. Now imagine you have 2 flats and 10K in your bank account. Your child gets the whole lot. Does this look fair?
Theresa May, that, as far as I'm concerned, should be sent to the Hague for architecting the hostile environment for foreigners, had only one non-demented idea in her entire political career: making social care fairer, and that's what killed her premiership. I can't think of a more emblematic example of what is going on in the UK.
This is why I plan to finance my own retirement and consider a minimum social security pension a happy bonus.
No, but because we should end means testing completely. I thought NHS meant you didn't have to do all the things we have to do here in the US.
A few years ago, I had to do an annual wellness exam so I could keep my health insurance "discount" at work. There was some miscommunication within the three parties: 1. Doctor's office 2. Lab 3. Insurance and I had to act like a mediator between them. I thought that was bad enough but NHS sounds worse now.
Also, not enough kids, and of those, not enough who wanted to go into medicine.
It seems like baby booms have a way of making things seem artificially good for a while, and then there’s a hangover.
Right but manufacturing technology better and more efficient, we produce far more "per worker" now
Edit: in before anyone asks for evidence of favouring conservative outcomes: Boris Johnson had a landslide 80 seat majority with only 43.6% of the popular vote. PR would mean more coalition governments, but those would largely be left leaning Labour/Lib/SNP even when the conservatives have higher than historically average vote shares.
It's also about rapidly declining population and people not willing to work. The result of welfare state.
If you incentivize people to develop themselves, acquire skills and knowledge, work and make kids, then they will be able to afford housing, medical care and pensions.
Were people not willing to work in the 1940s?
There is the ever increasing problem of more people drawing down state pensions, using the NHS and social care, than there are young tax payers to support them.
So the marginal tax rate becomes very low if you have three kids. Even incentivizes one parent to work less.
I don’t know if this was sarcasm, but this is the sort of absurd nonsense spouted by conservatives who’ve already gotten “theirs”.
Home prices that are astronomically high relative to average wages means that most people can’t afford to buy a home no matter what they do (other than becoming millionaires).