The Dying of the Middle-Class Dream: We Are Entering a New Phase in Which People Increasingly Feel That the System Is Rigged against Them. and Our Political Leaders, of All the Parties, Are Seen as Having Devised the Scam, or Colluded in It

By Behr, Rafael | New Statesman (1996), November 2, 2012 | Go to article overview
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The Dying of the Middle-Class Dream: We Are Entering a New Phase in Which People Increasingly Feel That the System Is Rigged against Them. and Our Political Leaders, of All the Parties, Are Seen as Having Devised the Scam, or Colluded in It


Behr, Rafael, New Statesman (1996)


All of British politics since the end of the Second World War has been underpinned by a double promise. The first element is collective--every generation will live better than the one before it. The second component is individual--any citizen's hard work will be rewarded with wealth and higher social status.

In the US, the equivalent offer is explicit in the idea of an "American dream". In Britain, we are more reticent about expressing the belief that self-advancement should be a fundamental right and more pessimistic about whether it extends to us. That doesn't mean the idea lacks currency, nor does it diminish the feeling of betrayal when the contract is broken.

It is breaking before our eyes. The financial crisis did not only disrupt the longest run of economic growth in living memory; it upset assumptions about who the economy was designed to serve. The perception that a super-wealthy elite was both responsible for the crash and insulated from its consequences is profoundly demoralising. It mocks the ambition of those who feel they are working harder than ever for diminishing returns.

For millions of British households the experience of the past few years has been creeping impoverishment. Wages have been frozen or have risen too slowly to keep up with the cost of living. According to data from the Office for National Statistics, the average weekly pay packet has fallen by about 8 per cent in real terms since the start of 2008--the peak of the boom. In the same period, while GDP per head has contracted by 7 per cent, net national income per head has fallen by 13.2 per cent.

According to a recent study by researchers at Loughborough University, the cost of a basket of essential goods and services--including food, fuel and public transport--has risen by 43 per cent in the past decade. The average domestic energy bill has roughly doubled in real terms over the same period. For many, those pressures have cancelled out material gains accrued since the turn of the century. Necessary components of family life--childcare, running a car-have become punishingly expensive for anyone living on or below the median household income, currently about [pounds sterling]26,500 per year.

Then there is the slow burn of Britain's housing crisis. Surveys of mortgage lenders show the average age of a first-time buyer is now 35, up from 28 in the 2000s and 24 in the 196os. The only reason hundreds of thousands of people who already own their property are able to stay in it is that interest rates are below the long-term trend. A sudden rise could tip them into arrears. Rents are inflating in the private sector, much of which is a wild west of cowboy landlords charging extortionate rates for hovels. As for social housing, in densely populated parts, anyone not destitute enough to qualify for emergency short-term accommodation can expect to sit on a waiting list for up to ten years.

Unemployment has not soared as much as many feared in the recession, but the official numbers are buoyed by increases in part-time work and by people declaring themselves self-employed, categories that conceal meagre incomes. Roughly 1.4 million people are forced to work fewer hours than they would like. There are still about 2.5 million people jobless. Youth unemployment is hovering just below the one million mark. A mass of research shows that future earnings and self-esteem will be dented irreversibly for those young people passing their formative years in a hopeless drift.

A YouGov survey conducted last month asked voters how worried they were that "people like you will not have enough money to live comfortably" over the next two to three years. Seventy-one per cent were fairly or very worried; 28 per cent were not worried. When asked about the fear of losing their job or finding work 64 per cent said they were worried and 32 per cent were not. Those proportions were broadly the same across social categories, political allegiance, age and region.

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The Dying of the Middle-Class Dream: We Are Entering a New Phase in Which People Increasingly Feel That the System Is Rigged against Them. and Our Political Leaders, of All the Parties, Are Seen as Having Devised the Scam, or Colluded in It
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